Centex - Foreclosure - Is This Legal?
Had a pre-foreclosure call last week regarding a property 4 months in arrears with Centex Home Equity. Homeowner signed an authorization letter for me to talk with their bank. They've not lived there in two months. I spoke with the loss mitigation department and basically got nowhere on a short sale. Predatory lender, lent only 20K on a 60K house on a refi.
Property is in severe distress.
Homeowner received the NOD about thirty days ago. She went over to the house today to find a letter posted that the house had been winterized (just today) and no one is to enter unless they call the 800 number on the paper. She called the 800 number and was told she would have to call the bank.
I believe it is my phone call to the bank that prompted this kind of response, since I had indicated that the house was vacant and had suffered flood damage last month.
BUT, are they allowed to just go in and do that?
I do think that most mortgages include the right to access the property to preserve the asset, should abandonment occur.
The property still belongs to the owner and you may be able to work a short sale.
It is unclear to me the following:
1. the current payoff
2. amount to reinstate
3. as-is value
4. amount of repair $$ needed
5. after repaired value
centex home equity does seem to be in the business of predatory lending. I have a property that they lent 30k on an 80k property at 12 percent interest.
I didn't bother with short selling because I figured it would be hard to convince them that this 80k proprty was worth less then 30 so I did a subject to and am now working on getting it refinanced. I will have much better financing next month.
Banks regularly secure properties that they believe to be vacant, and they have the full right to do so. I assume it was Safeguard who did the work?
The homeowner can get a copy of the new key just by calling. It doesn't change their rights with regard to the property. The banks are just protecting their collateral and the mortgage gives them the right to do so. If they believe a house is vacant they will do an occupancy check and secure.
Yes, chances are it was your call that prompted it if you told them the property was in danger of damage. The homeowner will most likely have to pay for these services in the long run when she reinstates.
Good luck...