Is Loss Mitigation a good idea?

Guest

Hi,

Some companies have put the blame on lenders, saying they are deliberately slowing down the foreclosure process. Current laws only require banks to pay 1% of the mortgage value, or six months’ worth of arrears, whenever they foreclose. By stalling, says mortgage lawyer Rosa de la Camara, they spare themselves the legal fees.

thanks
cdloanmod.com

Posted: Tue Apr 28, 2009 3:53 am Post subject:

Loss mitigation is definitely a good idea if you are finding it difficult to afford the loan. But what exactly is your query?

eric1 · Posted: Tue Apr 28, 2009 8:21 am Post subject:

cdloanmod

I understand what you are saying, but the banks do not want assets that are not performing. Meaning, if they are holding a note for $200k and the homeowner is not making payments, then the legal fees are the least of their concern. They have $200k that is now earning nothing.

You have banks that are entertaining offers for anything reasonable and close to the $200k so they can at least get most of their original investment back.

So, in short....I do not know why a lender would want to slow the foreclosure process if the borrower is not making payments.

Guest

Hello,
I have a property that I bought as an investment and did rent it for 6 months over the three year period that I own it. I have tried to sell it and have had 5 offers of short sale in the past 11 months. Finally, the bank has accepted one of the offers which is $250,000 less than I owe on the loan. They want me to come to the closing table with $20,000 and they will not pursue a deficiency. They will issue a 1099C as this is not my primary residence. I am trying to find a way to deal with the tax ramifications for this as it will show up as income on top of my regular income. I have not paid the mortgage in 10 months as I can no longer keep up with it and I am maxed out on all other fronts. The bank has not even begun foreclosure as we kept giving them offers of short sale. I have an attorney that is trying to negotiate down the $20,000 as I do not have that either. Do you have any suggestions and can you tell me if we don't do this closing and I just walk away, what happens to me in a foreclosure of an investment property. Can they come after me if I own other property? This is a very complicated case. Thank you for any help you can give.

"Jodi14u@aol.com"

[Email address deactivated as per forum rules]

chrsmackenzie · Joined: 08 Jun 2009 Posts: 5 2.94 Dollars($)

Hi Kasey
You have taken the right decision of modifying the loan because this is the only way you can decrease your interest rates. But it totally now depends on your lender that either he agrees for the loan modification or not. If he agrees to modify the loan , it will be a good option for you.

Guest

I purchased a condo with upgrades 2 yrs ago @127,500 and thus far never missed a payment. I owe about $124,000. When I purchased the condo, it was initially an investment and I planned to retire in 2-3 yrs, sell and move south because of continued health issues. The broker's good faith estimate reflects the property taxes @ about $50.00/mo. & condo assoc dues $100.00. The property taxes held in escrow now have soared to $298.00 + due are 151.00.
My hourly salary 2 yrs ago included 50-55 hrs ot. Now we have been cut to 40-45 hrs. I can't continue to pay the mortgage, plus the rest of the taxes, dues, PMI's, etc. At the end of the year, I will only have my SS and little 401K to live on if we downsize and I get cut back to Part time or no job at all. A realtor said for me to consult a lawyer before I proceed as my mediator. I want to know what happens to the taxes held in escrow for the upcoming year; will I get them back? How long from the time I fill out the request for the DIL to I have to move out. I live in Illinois. and what can I penalized with? The unit is worth $122K+. Can't afford to put it on the market.

All times are GMT - 7 Hours
Previous 1 2
Page 2 of 2