Negotiating Forebearance
Hey gang...Here is the deal:
Balance owed: 97k
Current Value: 107k
PITI: 800/mo
Arrears: 3200
ARV: 115k
House is in great area.
I spoke with the loss mit rep handling the deal. The lender is Wash Mutual and the Loss Mit company is first american loss mitigation out of Texas. He said that they may be willing to consider a "minor" forebearance (but certainly not as little as half the arrears) agreement, but that we need a bunch of financial paperwork from the homeowner. Problem is, homeowner has a job and has continually had income coming in (albeit not much income), but is on drugs and has simply not been making payments.
Do they usually only do a forebearance if there is financial hardship? If they say they need 2500 and then for the payments to be made on time, can I counter? Does it do any good to say " the best I can help with is $1600 and to start making the payments, if not then the homeowner is probably going to let the house go to FC...or is it not a good idea to try and play hardball with these guys?
Thanks in advance.
P.S. I realize this is the SS forum but I figured you guys have pretty good experience dealing with the loss mit folks.
Thanks.
Suntzu18
If the mortgage is owned by WAMU (probably not owned but simply serviced) they may be more flexible with the workout criteria. Usually, there is a prescribed set of criteria and limitations for workouts that are imposed upon the servicer or sub servicer...by the investor who owns the mortgage, and not much room to wriggle.
If it's an FHA insured loan, there might be some special consumer rights available to the Borrower.
[addsig]
The loss mit rep mentioned something to the effect that WAMU may be willing to do something but probably only add the arrears to future payments which would in his opinion "be too much for the homeowner to handle". If I decided to go through WAMU would I still have to get all kinds of financial paperwork from the homeowner?
Can I use the potential of going directly to WAMU as a negotiating tool when dealing with the loss mit company?
Our exit plan is to acquire the property, do minor repairs (prop is in great shape) and flip or possibly do lease purchase.
The ability to add arrears to future payments may give us time to get the house sold or leased out....should we try and deal with WAMU directly?
Thanks SS Pro.
Suntzu18