Forebearance And Discounting
Can someone give me the layman's version of forebearance and how to make it happen on a 1st mortgage of a property approaching foreclosure?
Also, has anyone tried to discount a 2nd mortgage as part of a pre foreclosure deal with any luck? How do you protect yourself in that situation from the not receive the money at the eventual sale of the house?
Do you write up a contract with the owner of the preforeclosure that spells out everything from beginning to end regarding who will be responsible for what and when... as well as how the eventual proceeds will be distrubuted...
Thanks....
Forebearance is nothing more than working out a repayment plan for the defaulted mortgage, where the bank changes the terms or adds payments to the end of the loan or takes extra money until the debtor has caught up the back payments. Second lien holders will usually take less than what they are owed. You can write it up in the sales contract that the sell is subject to 2nd lien holder agreeing to take a specific amount. That way if they do not agree you can walk
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr