Home In Foreclosure.... HELP!!!!!!!

My cousin's home is in foreclosure, so being the capable and curious investor I am, I decided to give it a shot. I spoke with the loss mitigation dept. since July and they never even tried to get back with me to resolve the issue. I kept following up many times and left many messages and no one got back to me.
WHen I finally reach someone, they tell me the person handling this account got www.fired.They told me someone would get back to me and of course they didn't. Then when I followed up again to see what was going on, they told me that no one was assigned to my case , and not to worry because I was stil early in the foreclosure process. I found that quite comforting until I finally got someone working on the account. She worked on the case, just to tell me that I had to put $3000 down to stop the foreclosure and $1300 a month for 9 months which is crazy cause my cousin only owes $9100.
Aren't they suppose to put the majority of the arrearage on the back of the loan.
They told me that the investor who bought the loan which was citibank, does not do work outs and that they can't even get a hold of these investors to propose a workout. So I either pay that ridiculous payment plan, pay the entire balance due, or say screw it and let it go. The problem is I don't want to let it go. If anyone can help me who has experince in foreclosures, please pm me with whatever info you can provide.
Thanks in advance!!!! Happy investing!!!

Comments(7)

  • Birddog11st December, 2003

    Offer to buy out the mortgage, but for less than it is. Say its 100k, offer 55 or 60k for it. You never know unless you ask. We call this a short sale.

    Eric
    [addsig]

  • myfrogger1st December, 2003

    The other side of this is you may want to second guess doing business with family and friends. If something gets out of hand, business is no longer just business; it is personal.

  • edmeyer1st December, 2003

    Is it possible that whoever you are communicating with thinks that you are trying to buy the house? I have been asked to put up non-refundable money to stop a foreclosure but the money goes to pay down loan if house closes within a time alloted by lender.

    You might check on the laws in your state. In CA you can reinstate a loan up to five days before scheduled sale on a non-judicial foreclosure.

  • MidWest_Investor1st December, 2003

    yipes,

    Unfortunately, lenders are not the most cooperative group when dealing with homeowners in foreclosure (as you are experiencing). I also happen to agree with myfrogger that mixing family and business is risky.

    Send me a private message and I can give you some insights and ideas....

  • gotmike2nd December, 2003

    citibank most certainly does short sales. in fact, they are one of the easier ones to deal with. however, i would not tell them anything about you being related to the homeowner, otherwise you will make very little progress. if the homeowner calls the lender, they get the collections dept, if a third party calls, they can get to loss mitigation.

  • Lufos2nd December, 2003

    Please tell us your state, so we can check a little and advise you. You have all kinds of experts.

    I must say I find Citybank very easy to deal with. I have as is allowed obtained a postponment of sale the day before sale and I have merely caught up to date the back due payments their costs and whatever and set the loan back on track.

    Cheers Lucius

  • yipes2nd December, 2003

    I'm in the state of delaware. Also I want to thank all of you guys and/or gals for your opinion. I'll figure out something.

    Again thanks to all!!!!!!

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