Forbearance Agreements
do the banks typically work out forbearance agreements with homeowners that are in arrears but not yet in foreclosure? thanks.
do the banks typically work out forbearance agreements with homeowners that are in arrears but not yet in foreclosure? thanks.
kelly17,
Glad to meet you.
Yes, most banks do work with their borrowers.
Most homeowners are unaware they can work with the bank to have there back payments spread over time.
I have used this when purchasing "Subject To", where I contacted the lending institution using a Letter of Authorization from the seller and negotiated the back payments be spread over time. This gave me the ability to buy the property without having to come up with this money up front.
When I sold the property, the down payment I recieved from my buyers, I made sure covered the back payments.
Welcome on board this board, excellent first question, keep on posting.
John $Cash$ Locke
What are some of the requirements needed in order for the bank to grant a forbearance?
I spoke with a fellow investor who said that he is able to help a homeowner whose house was going to be auctioned off but needed at least 8 hours before time of auction to do so.
Is it possible to work out a forbearance (or any kind of deal, for that matter) with the lender just a day before the sale??
Most lenders do not want to own the property. Some have insurance on the loans FHA, PMI, VA etc but still do not want to foreclose. I do not know about last minute forbearance exactly but would think that some money may go a long way and they would be willing to work out a forbearance if they received a large portion of the arrearage.
Good LUCK and Thank You
Hope this helps some
Ted Jr
SW Wrote:
Quote:"Is it possible to work out a forbearance (or any kind of deal, for that matter) with the lender just a day before the sale??"
Normally a Lender needs at least 48 to 72 Hrs before the Sherrif's/Trustee sale.
Though I have walked into the bank with a cashier's check literrally ONE Hour before the sale was to take place to pick up a really nice deal...
There are just so many good deals out there requiring Less Last-Minute hustle-bustle and CERTAINTY of PROFIT!
FIRST
Look at WHY YOU would want to go about scrapping helter-skelter to pull together INVESTOR DOLLARS and (your own) resources together to save this home from the auction block?
Is it High Ammounts of EQUITY?
A super Low-Interest Rate?
or
You've Already Lined up a Buyer?
If not then PASS cuz there's more Fish out there to Eat until you are FULL!
Happy Investing!
Derrick Ali
I have another caveat:
Quite a few times now, we have negotiated a very fair workout (even at the 11th hour) with the bank on behalf of the homeowner ONLY to have the homeowner NOT comply with the agreement.
Every Saturday before our Texas auction, one or two people will call as ask for our help in getting their homes off of the auction block. Now I just ask them why they waitined until the very last minute to call for real help other thatn a BK attorney.
I agree, just walk from the last minute, rush deals. There are too many opportunities to help people who are a bit more proactive, controllable and willing to acept your help - also too many good opportunities to legitimately acquire deals BEFORE all the other so-called investors start harassing these porr folks.
C-