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Mgreenstein
95 Posts |
 Posted - 07/03/2009 : 6:25:02 PM
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| If you are currently working with a client who qualifies for a refinance but their current loan is under collateralized I will negotiate their existing mortgage debt and fund a new loan up to 95% of the current appraised value. Borrower must have >550 Fico score. There is no additional fee for this service just the cost of the refinance. Feel free to give me a call to discuss referring me your business. We have seen drastic reductions of principle negotiated right from this office. There is no guarantee all negotiations will be successful but your client will appreciate all of my effort. |
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davidfr
2223 Posts |
Posted - 07/03/2009 : 6:34:55 PM
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| This belongs in the announcements section. |
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Managing Prime
2958 Posts |
Posted - 07/03/2009 : 6:42:30 PM
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| Let me get this straight. Say someone has a current appraisal for $100,000 and current liens totaling say $130K. You will negotiate $35K off the balance owing? If the loan is performing, why would the lender want to write down 35K? |
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Mgreenstein
95 Posts |
Posted - 07/03/2009 : 6:53:28 PM
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| Because they will. They are assuming the market will continue to go down along with the collateral. If the collateral is no longer going up in value as inflation rises the asset is no longer generating the investor a profit. |
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kellamtom
1131 Posts |
Posted - 07/03/2009 : 10:00:40 PM
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it's called a short refi and 2nd lien lenders are accepting short payoffs if the borrower can prove a hardship and there no value, this is very difficult and a slim chance to get a short payoff approved. I wonder if the lender is getting the same benefit that those lenders are getting on the short sale. I heard that those doing short sales are getting a pretty penny from big brother.
here's an exerpt from financialstability.gov
The Secretaries announced new details on the Making Home Affordable program:
Foreclosure Alternatives provide incentives for servicers and borrowers to pursue short sales and deeds-in-lieu (DIL) of foreclosure in cases where the borrower is generally eligible for a MHA modification but does not qualify or is unable to complete the process, which helps prevent costly foreclosures and minimizes the damage that foreclosures impose on borrowers, financial institutions and communities. The new details will simplify and streamline the process of pursuing short sales and deeds-in-lieu, which will facilitate the ability of more servicers and borrowers to utilize the program. The program provides a standard process flow, minimum performance timeframes and standard documentation, and it offers financial incentives to servicers and borrowers to pursue these alternatives to foreclosure.
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Mgreenstein
95 Posts |
Posted - 07/04/2009 : 9:39:52 PM
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| It's all really case by case. Each servicer has a different protocol contingent on which portfolio they are servicing for a particular investor. We have seen even 1st lien holders take a reduction of principle. It is a lot of work to negotiate the payoff as well as making sure your borrower doesn't go late on their mortgage in the process. |
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