Making Up Back Payments
Hi,
New to the sub 2 idea.
When I (as an investor) am going to take over a home in pre-foreclosure, buying it subject to the existing loan, the original owners move out and I take over the payments. How do you handle making up the back payments to bring the loan current so it doesn't go into foreclosure? In Texas, you have 21 days from your third late payment and you are out. Does it require cash right then? Will the lender work out a forbearance with me, even if they have already done a forebearance once with the original owner to save the house? Would the lender just tack on extra money to each payment until the back payments were made? I know I don't tell the lender that I am buying the house, just that I am a friend of the family trying to help them out.
I mostly want to know, how do you go about bringing the loan current? Does it take cash up front?
Thanks. :-?
I've found that its very difficult to get a second loan modification once the owers have dropped the ball on the first agreement with the lender. It usually ticks them off. (One of the most profitable deals I did was with an owner who reneged on his bank agreement twice, but I had to payoff the loan. They refused to allow reinstatement)
With time so short in Texas, you should get the Reinstatement Amount and cure the default-if the deal is profitable enough.