Preforeclosure Lawyer Fees And Back Payments
Hi,
I have a question about the lawyer fees and the interest lenders charge per day that a person is behind in payments. Is that negotiable at all. I have a person that is behind 7 months in payments at before they got behind, only owed $72,000. Now the letter from the lawyer says that they owe $86,000. I know that includes the lawyer fees and extra interest charged by the lender. What's the chances of them letting me get the loan back to what it was by just making the back payments and that's it? Please help.
Thanks,
Kyle
Hi Kyle,
It may be negotiable in a short sale, and it may also be if you are buying subject-to and bringing the note current.
Lenders may take less than the outstanding fees due to bring the note current. They wouldn't necessarily forgive the amount, but the balance would probably go on the note at the back-end.
Best of Success!
BAMZ
Seven months behind this may be close to an auction sale. May be too late for Subject To, have the seller sign a POA (Power of Attorney) which allows you to speak/negotiage on their behalf. Don't be surprised if you receive push back. "Talk to our attorneys..." A short sale on the next available technique so that the lender doesn't have to go through foreclosure AGAIN in 6-10 months. So most lenders want a sale/cash at this point.
Eric & Rosa
[addsig]
Kyle,
As you know, Georgia is a swift moving foreclosure state. It depends on when the foreclosure process was started.
In my area, I have seen homeowners behind a little as 3 months before the foreclosure process was filed, and as long as 12 months. The 12 month stretch is unusual, but the time line can fall anywhere in between that gap.
If you have time to do a short sale, then you have time to do a subject-to. Regardless of your approach, they are both two viable options that you should consider. One will take a little outlay of cash, and the other will take a payoff of Cash!
Best of Success!
BAMZ
[addsig]
Thank you both for your feedback. I was interested in doing it subject to. The sale is on November 4th. That doesn't give me enough time to do my due dilligence, so I just considered it a bad deal.
Since they waited so long, there may be substantial equity. Or being down 7 payments with the associated expenses may also have consummed all the remaining equity. Check to see what the situation is. If it's worthwhile you may try to get the lender to postpone the sale. Time is very short so you'd have to contact the lender the first thing monday morning.