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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 moved from Ca. to texas to get job. make 1/2 the money and now because I rent, have 2 payments plus everything else. Mortgage in CA. 2 months behind and owe for June. Can't modifiy cause I don't live there, and no renters. If I could only get a lower monthly, but NFCU says they will only add june into july and my payment will go up, if I catch up with april and may! I have payed on this vacant home since may of last yr. can't seem to find a solution to how to make the bank happy until I rent or sell.

adonis · Posted: Wed Jun 02, 2010 11:43 pm Post subject:

Welcome Vikki,

It will be difficult for you to convince the lender in order to find out a solution. A loan modification would have helped you in saving the property. But as you do not live in the property, you won't be able to take advantage of it. You can apply for a forbearance and check out whether or not the lender accepts it. If your request gets accepted, you'll be able to save the property.

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Is Loss Mitigation a good idea?