Latest News From Loss Mit Dept.
Just got off the phone with the loss mit dept regarding the sub to deal we are working. Rep (who has been very helpful, emails and returns calls fairly quickly) has said they he needs two paystubs from the last 60 days and a monthly expense statement filled out (that he emailed me). He stated that if the homeowner shows that he is earning roughly $200 above his note, then they will probably do a modification (put all arrears on the back end). He said that the homeowner would have to pay attorney's fees, etc. I said no problem.
Once the loss mit dept decides to do a modification, there will be new loan paperwork he will need to sign, almost like when he bought the house.
My questions is this, should we go ahead and get the deed and P&S signed and notorized, along with the POA , BEFORE they officially decide to do the modification? I do not think the homeowner will change his mind regarding the deal even if they agree to put the payment on the back end-he just wants out from under the payment. Also, should I tell him exactly what s going on with the payments in arrears/modification? I simply told him that we would take care of it.
Thanks in advance.
Suntzu18
I don't know about the loan modification question. But I do know that if you did all your paperwork after the new loan goes through, you'll be OK. er on the side of caution I always say.
As far as to tell the homeowner or not, that depends on how much they want to know. They have a right to know exactly what you are doing and plan on doing. The question is, do they WANT to know?
Ignorance is bliss. Only you (maybe not even you) know the answer after you've talked with them.
Best of luck.
Sam
Hello,
What is a P&S in the Subject To? I've done LOs, but I just did a Subject To. I got the deed to the house too -it was free and clear of any/all leins & what not.
Thanks,
OnTheWater :-D
suntzu:
If it was me, I would wait...anything can happen between now and modification is complete. Plus your P&S would be based on assumed numbers, not necessarily the actual final ones from the modification.
If you wanted to make sure they didn't back out, I suppose you could sign a P&S, with an "additional provision" outlining that the purchase is subject to the modification terms.
Andy[ Edited by arytkatz on Date 06/03/2004 ]
I bet it is fraud to get a loan stating that you own a house that you in fact do not own. You would be putting the homeowner in a bad situation.
You will have to have papers dated after the loan modification (assuming it like a new loan) to record.
Brenda
Hello,
Again, could you please explain what P&S is?
Thanks,
OnTheWater :-D
P&S is the purchase and sale contract.
Hello,
Thanks for the response.
Good to learn that I've covered all my bases. Thought there was something I missed.
My "P" is cost - expenses; My "S" is what I can make above my "P."
Thanks,
OnTheWater :-D