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refimadness
214 Posts |
 Posted - 03/01/2008 : 05:10:14 AM
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renegotiate their mortgage to fend off forclosure? I have one who is going on three months late.....He was told by a co-worker (fellow fork lift operator) to contact CITI and plead his case. He is hoping for a lower rate and to have his contract reworked.
Have you heard of any success stories on this topic?
Thanks much! |
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ppulatie
2212 Posts |
Posted - 03/01/2008 : 07:59:14 AM
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This method only results in forebearance, meaning that they are still technically in foreclosure. Miss one payment during forebearance and the auction is immediately scheduled.
I recommend getting a complete new loan. |
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gopackers
432 Posts |
Posted - 03/01/2008 : 08:05:15 AM
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| lenders are becoming more willing to work with the borrowers. they would rather work with the existing home owner then pay attorney fees and sit on a house in a declining market. it makes a lot of sense for them to do this. government is also pushing this on them. i would not be surprised if the fed gives them some type of subsidy to help them. if home values were on the rise it may be a different story. |
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homebroker@sbcgl
2149 Posts |
Posted - 03/01/2008 : 08:42:55 AM
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| Yes, we have seen a short Refi, the bank renegotiates the loan to 100% LTV, if the market declined that means the principal balance will be reduced to the new value. Plus they locked the rate back to 6.375% from the 9.50% adjustment, brought the past due amount current. The borrowers had to prove income and qualify for this program. Indy Mac is the borrowers lender that did the modification. Some lenders are more awake than other, some lenders I assume would rather foreclose and take the massive losses, or their managament is to green or afraid to understand the current market and be proactive and do something to assist a borrower. |
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refimadness
214 Posts |
Posted - 03/01/2008 : 09:36:33 AM
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Hmmmm......methinks he might have a chance!
thanks much! |
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peter
3978 Posts |
Posted - 03/01/2008 : 3:34:08 PM
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Starting April, Fannie will roll out the HomeSaver Program
whereby you can refi your borrower to cover the past due
amounts plus accrued interests, up to $15,000. I think this
may be a 2nd loan program to help borrower back to being
current. And once your borrower is kept current for a while,
you could refi the 1st and the new 2nd (HomeSaver) into a
new 1st, subject to credit improvement and equity sufficiency.
Peter |
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refimadness
214 Posts |
Posted - 03/01/2008 : 4:38:27 PM
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| Thanks for the response |
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