| Author |
Previous Topic | Next Topic |
|
MrMB
67 Posts |
 Posted - 06/21/2008 : 9:42:05 PM
|
If a trustee sale/auction was stopped by
arranging a forebearance agreement and the owners are now
on a repayment plan, are the owners still
considered in foreclosure?
Do lenders (including hard money) see their situation differently now? |
|
SolarMTG
265 Posts |
Posted - 06/21/2008 : 9:48:27 PM
|
| if it shows a 120 on the credit it is the same as a foreclosure. |
|
|
MrMB
67 Posts |
Posted - 06/21/2008 : 10:22:10 PM
|
Thanks for the reply.
So even though a repayment plan has been worked out
it is still considered in foreclosure?
I have had a hard money lender state the following:
"We normally can go up to 75% CLTV. With the Notice of Default,
or Notice of Sale, this would drop to 70%."
Im assuming that even with the repayment plan, the LTV would
still be 70%, correct? |
|
|
sheriephillips
396 Posts |
Posted - 06/21/2008 : 10:43:59 PM
|
It's not a completed foreclosure since title did not revert back to the bank, however, it's considered a foreclosure action since borrower had a NOD filed and is 120 days late. At best, lender will rate their mortgage as a 1x120 if this occurred in the past 12 months. Even though the lender is willing to workout a forbearance agreement, did they also say they will remove the NOD from title? With subprime guidelines, you probably could get the lender to use 12 mths worth of forbearance payments as a rating after 1 year of ontime payments to the current lender. With A paper, probably not going to happen since the bank will still rate the mortgage late each month while in forbearance and consider the foreclosure action and NOD on title to be a huge negative. Maybe the current lender can work out a modification so the borrower doesn't need to try and obtain a refi elsewhere, get back on his feet and in a few years, be credit worthy again.
|
|
|
slants
4189 Posts |
Posted - 06/21/2008 : 11:53:53 PM
|
quote:
Originally posted by MrMB
Thanks for the reply.
So even though a repayment plan has been worked out
it is still considered in foreclosure?
I have had a hard money lender state the following:
"We normally can go up to 75% CLTV. With the Notice of Default,
or Notice of Sale, this would drop to 70%."
Im assuming that even with the repayment plan, the LTV would
still be 70%, correct?
Yes, hard money guys who prefer to call themselves "equity lenders" are just that, strictly equity based and not credit driven. They rarely ever lend > 70% in any situation. |
|
|
| |
Previous Topic | Next Topic |
|
|
|
Search for: 
