urgent help with deal that is few days from f/c
my homeowner has a first that says they are "starting foreclosure by this friday." (i have faxed all my docs to loss mit but they have not yet called me back. they won't give me who is working on this case -- i have to wait to be called by them!) bank says loss mit can't stop the f/c process and wants me to have the homeowner call the bank to work out a pymt plan, but h/o says that when they called previously the bank says they want "all or nothing".
1. why do collection depts want "all or nothing"?
2. will the f/c process really start on friday? (h/o is only 3 months late so far.)
3. will my second be more willing to deal if the first actually starts the f/c process?
4. my h/o is not worried about f/c bc they have already been approved for an apt to move into so they dont really care about the f/c. is that okay?
5. i dont really understand what is meant by "starting the f/c process". how long do we have from when the f/c begins to the sale on the steps? (im in kentucky - mortgage state).
6. once the f/c begins (if it does on friday) will i not be able to put together a s/s on this? or is "starting" f/c different in this respect than actually finishing it at the steps?
sorry so many questions. i just really want to get this right and not mess anything up for these homeowners. thanks all for your help!
[quote]
On 2003-04-16 00:10, sewa wrote:
my homeowner has a first that says they are "starting foreclosure by this friday." (i have faxed all my docs to loss mit but they have not yet called me back. they won't give me who is working on this case -- i have to wait to be called by them!) bank says loss mit can't stop the f/c process and wants me to have the homeowner call the bank to work out a pymt plan, but h/o says that when they called previously the bank says they want "all or nothing".
~~Sewa, try to get the right dept. on the phone and fax the auth. to release while talking to them. Right now it doesn't sound like they've even hinted they might do a shortsale. Who did you fax & what are "all my docs"?.~~
1. why do collection depts want "all or nothing"?
~~Why would they take any less until it's absolutely clear they aren't getting paid?They haven't even started a formal proceeding.~~
2. will the f/c process really start on friday? (h/o is only 3 months late so far.)
~~ It will start when they file the notice of default.~~
3. will my second be more willing to deal if the first actually starts the f/c process?
~~ Is the homeowner behind on the second? I doubt they'll listen to anything if they aren't.~~
4. my h/o is not worried about f/c bc they have already been approved for an apt to move into so they dont really care about the f/c. is that okay?
~~ If your going to s/s they should probably stick around a while. How will that look to the bank that they have rent $ but not mortgage $? I hope they come across as a little more concerned in their hardship letter!~~
5. i dont really understand what is meant by "starting the f/c process". how long do we have from when the f/c begins to the sale on the steps? (im in kentucky - mortgage state).
~~I don't know, but in Texas we only have 21 days, start to finish!~~
6. once the f/c begins (if it does on friday) will i not be able to put together a s/s on this? or is "starting" f/c different in this respect than actually finishing it at the steps?
~~Go back through you s/s book. I think the f/c Has to have begun for them to shortsale.~~
Good Luck, Ty
ty,
you are so kind to have responded to my questions so thoroughly. thank you. it really helps.
h/o are not moving out. they've just got an apt lined up to move into. it is much much less in cost than their loan amt which is why they can afford it.
i've had terrible time getting thru to loss mit. they seem to stonewall and send me to collections time and time again. why are they so reluctant to send me to loss mit?
i understand now that the NOD is just days from filing and i still have months bf anything drastic happens to my homeowners (an actual sale). the question is how long do they have? i dont know this yet and i guess it depends on the state.
anyway, thanks again so much for your response. i really appreciate your taking the time. -sewa
From my own personal exp. of avoiding a foreclosure. Banks agree to a Shortsale bc they want to avoid the cost of going thru the foreclosure process. So...I'm assuming that you have to do the s/s before the foreclosure is all processed. We were given 2 choices to avoid foreclosure. 1. a Deed in Lieu - bank buys it back or 2. a short sale. Both options saves the bank money and saves the h/o's credit.
Good Luck
Serrico
Here is my 2 cents.
the reason why they won't put you through the loss mitigation dept, is becase a NOD has to be filed, before i even reaches their desk.
right now it is still in the collection depatments hands, because they are still in charge of that account for now. So your timing is off, because no one in collections is going to have anything postive to say to you, let alone tell you what is really going on like I just told you .
When you are shopping around for short sells in the future, you make your job a whole lot easier if you just focus on properties after a NOD is filed. They are public records anyone can acsess at evey county court house for free.
Sewa, I think you can often times aquire the property for less than the dollar amount the homeowner owes to the mortgage company if you wait until it goes to auction.
The homeowers ususally is unwilling to help you take advantage of their misfortune. This is just what I have seen. Avoid the headache and wait for the auction.
thanks so much to serrico, parker and vern for your comments. i appreciate your time and sage advice. -sewa
Hi Sewa,
Here goes......
Q. my homeowner has a first that says they are "starting foreclosure by this friday." (i have faxed all my docs to loss mit but they have not yet called me back. they won't give me who is working on this case -- i have to wait to be called by them!)
A. Loss Mit can be very trying. Keep calling them everyday until you get a rep. If no call backs.... fax them every hour. This will piss them off, but they will call back.
Q. bank says loss mit can't stop the f/c process and wants me to have the homeowner call the bank to work out a pymt plan, but h/o says that when they called previously the bank says they want "all or nothing".
A. Loss Mit CAN stop the sale anytime it wants to. Tell the bank that the homeowners are planning to file bankruptcy unless the bank works out a short sale. Tell the bank that the homeowners attorney said something about filing a Chapter 13 and then a 7 and living free for a year. The bank will know exactly what you mean and will not be happy about it.
Q. why do collection depts want "all or nothing"?
A. Most banks will do a forebearance agreement. You might need to be more assertive on your next call.
Q. will the f/c process really start on friday? (h/o is only 3 months late so far.)
A. There is no set amount of payments that must be late for a bank to proceed with foreclosure. One late payment is considered default. I find that most banks miss at least 6 payments before they proceed with foreclosure. Again, there is no set number.
Q. will my second be more willing to deal if
the first actually starts the f/c process?
A. What happens to seconds at the foreclosure sale..... they get wiped out. I find 2nds to be very easy.
Q. my h/o is not worried about f/c bc they have already been approved for an apt to move into so they dont really care about the f/c. is that okay?
A. Many times it is up to you to make the homeowners aware that they should care about the foreclosure. In a few years, when they want to buy a new house, they may not be able to with a foreclosure on their credit report. Point out the fact that at some point they will want to move ahead with their lives and you can help them do that now. You can save them from foreclosure AND give them some cash to move with.
Q. i dont really understand what is meant by "starting the f/c process".
A. That simply means filing a Lis Pendens... a lawsuit. This makes it public and the bank is now moving for possession of the property.
Q. how long do we have from when the f/c begins to the sale on the steps? (im in kentucky - mortgage state).
A. Not sure about Kentucky. Mortgage states usually have a while. Be certain the homeownrs filed an "answer" with the court. Ask for a 180 day extension and get busy.
Q. once the f/c begins (if it does on friday) will i not be able to put together a s/s on this? or is "starting" f/c different in this respect than actually finishing it at the steps?
A. Once it is in foreclosure, you can begin your short sale. You need a distress in order for the bank to be inclined to do a short sale in the first place. Finishing a foreclosure means going to the sherrifs sale. Big difference from start to finish.
sorry so many questions. i just really want to get this right and not mess anything up for these homeowners. thanks all for your help!
If you need more help on this deal, call my office. Joel can give you the number....
Good Luck,
Dwan