Late On Payments - Pre-Forclosure?
Due to some temporary hardship, I fell 3-4 payments behind on 2 of my properties due to some un-forseen circumstances. I filled out a hardship "Loan Work-Out" application with both Banks so that my loans can be re-negotiated (possibly wrap the amount due to end of loan) before they start forclosure process on me. My question is, should I wait until they respond to my applications (which I submitted about 5 weeks ago) to make additional monthly mortgage payments?... I rather wait and see what they tell me, what is your opinion? I understand some banks will work with you but ask for 20% of past due amount up-front.
I own a loss mitigation company. We do this all the time.
If I were you I would not wait. Mortgage lenders are bogged down with workouts. You will need to stay on top of them because they will put your file in a blackhole somewhere and give you the run around.
If you have to, call them every day until you reach the person that is working your deal. Having contact with the exact contact is key.
[ Edited by ndnole on Date 08/25/2008 ]
[ Edited by ndnole on Date 08/25/2008 ][ Edited by JohnLocke on Date 08/25/2008 ]
Thanks! They did give me a name, but they refused to give me a direct #. They want me to check every 7 days or so on status. Instead, I will check on a daily basis as you suggested. I also asked them to put a note in their system stating I called just to have it recorded.
Honestly they may already be giving you the run around. In five weeks time they should at least have someone assigned to review your package. If you get someone that wont help, Politely hang up and call back again. Sometimes speaking to a different person makes a difference.
Being 3-4 months behind on the mortgage is the danger zone, they could set a sale date at any time.
1 step at a time. Be adamant about knowing who is assigned your package. You may only be speaking to someone in collections, their goal is not to do a workout. There goal is to collect as much as possible.
Make sure they are sending you to the loss mitigation dept.
I hope that helps.
They actually have a new email addr and website for people to as to buy REOs.
It seems to be one off, I have not tried to build a pool and make an offer on it.
Thanks for the info- It seems like such a waste for the bank to relist the property and not even entertain an offer prior to that. In this house situation, the house was on the market for 8 months or so with no sale. I dont know what they think they will gain by listing it, paying commissions etc. In the end I guess they will just loose even more going this route..