Will Lenders Work Out Problems In Pre-foreclosure?
I have a family in pre-foreclosure and I am working on their case. My question is - Will the lender work with the familyonce they begin the foreclosure process. I talked to the wife and she told me that the lender is going to work with them, but she wouldn't tell me how. I know that if they can bring the payments current, they can prolong the foreclosure until the same happens again and I know they can file or threaten to file BK and that will slow things abit. Just wondering why I got no answer from them. She might be bluffing and just in denial. Also, why would they ask me for help and not tell me if they are working things out on their own? Any thoughts or suggestions would be appreciated?
Part of the distressed mortgagor's process is to learn about all options and alternatives... both conventional and creative. They are starved for information.
Their lender hasn't necessarily offered a solution to the problem, but have allowed for possible non foreclosure alternatives, and the promise that they will 'work with you' to see if a solution can be devised and implemented.
As the conventional alternatives are first identified, then reduced or eliminated, they'll be more receptive to selling their home.
Thank you ShortSalePro! I will be there to help them when they discover they are still in the mess they were in at the beginning of this process. Have a Happy New Year!
Even if they are able to resolve their situation now, the impression you leave with them will get your phone to ring when they find themselves in trouble again. Maybe in 3 months, 6 months, or ? So, stay in touch with them.
They have several options to work things out other than pay the entire amount that they are in arrears.. They can ask for a forebearance, special forebearance, loan modification, partial claim (FHA) or participate in the Refunding program if it is a VA mortgage. They can even do a combination of the above. People don't have to lose their home just because they are in foreclosure.
Thanks for the info folks. I am making notes for my own strategies and for the future contacts now. I will be keeping a close eye on things and I will be sure to keep in touch with the current owners. I know they will be needing help in the near future and I will be there!
I think you would be ok at auction.
And the bank would just bid 18k plus 82k to cover thier loans. You should expect to have to bid over 100K to get it.Dont expect banks to be stypid and 2nd note holder has a right to bid also