Sub2 And Arrears

Comments(8)

• 
  smallinvestments8th March, 2004

  Usually lender's will call a loan due when the interest rates rise. If you have a loan at 8% and it is higher than the going rates, they are less likely to call it due unless the rates jump to 15%. It doesn't really alert them....for all they know, you could be a family member helping out....they want to get paid, and are happy when they do.
  
  Worst case scenerio, they call the loan due...so what, they will usually give you 30-60 days to payoff the loan...plenty of time to secure a loan or sell off.
  
  Good Luck...Only one opinion, there will be others.

• 
  nebulousd8th March, 2004

  smallinvestments,
  
  Could you please site the cases where the mortgage company called the loan due because of rising rates?
  
  And could you also be specific as to how they went about doing that, how they found out the ownership transferred, and all the juicy important details.
  
  Thanks

• 
  samedwin8th March, 2004

  I'm at a loss of any example of when a lender called a note due because the rates were on the rise. If you don't know the answer to the ?, don't make stuff up.
  
  As to answer your ? Junoti. If you get agreement with seller to buy their house, you have 2 options:
  1.) Make up all the back payments, continue to pay mtg.
  2.) Get forebarence argreement and work out pmt. plan with the bank. Keep your cash.
  I think I like one of these options better than the other...
  But, call the bank. Will the work out forebarence agreement at this stage in the game? How many months behind are they? Has a foreclosure begun yet?
  These are important quest. because if the forecls. is too close they won't even deal with you for any reason.
  Do you have a specific situation, or are you doing What/If/When, hypothetical stuff?
  Sam

• 
  active_re_investor10th March, 2004

  The original question mentioned pre-forclosure. If there has been late payment but no notice of default then the lender will know there is a problem but no request for the loan to be paid off. If the notice of default has been served then the loan is already due so the lender will be alerted.
  
  Asking the lender to agree new terms will confirm little more than they already know in this case.

• 
  Junoti10th March, 2004

  samedwin --
  I have a friend who is in pre-foreclosure. I found out that he owes approx. $5300 in back payments. I'd really like to make him an offer, but I'm not sure how/where I could come up with the $5300 to make up the payments, and then a little extra cash to give him to move out.
  
  active_re_investor --
  Would the lender, knowing how much it would cost to foreclosure on the home, be willing to work with me? That, and the fact that the interest rate currently on the home is above market, are leading me to believe that they will work me on making up the arrears. Feel free to correct me if I'm wrong.
  
  
  So, what I'm getting from these posts (by the way, thanks for the replies!), is I have two options:
  1) Try to work out a payment plan
  2) Try to get a forbearance agreement
  
  Is this correct?
  
  Thanks!
  Junoti

• 
  JohnLocke10th March, 2004

  nebulousd,
  
  You are right, where do they come up with this stuff?
  
  I am more than ever convinced that some of these posts are done by folks who fell asleep watching a late night Guru infomercial and when they woke up they were one.
  
  I have been through up interest rates and down interest rates and it never made any difference in what a lender will do.
  
  You can always negotiate with a lender, they do not really want the property back in the majority of situations, so it never hurts to call and work out a forebearance on the property.
  
  John $Cash$ Locke

• 
  Stockpro9910th March, 2004

  If you don't have $ to do the deal then get a partner who will share with you. Or, get and option on the property and sell it to him. Or get a tennant buyer lined up with 6-10K in down/option money. Or.....

• 
  samedwin10th March, 2004

  So, what I'm getting from these posts (by the way, thanks for the replies!), is I have two options:
  1) Try to work out a payment plan
  2) Try to get a forbearance agreement
  
  Is this correct?
  
  Junoti,
  A forebearance argeement IS a payment plan. SInce you don't have a lot of cash, try to work out something with the bank. If the fails, you can place an ad in the paper and see if someone will put a downpayment down on this house (as long as it's >6K, right?) and work it out that you all close, get the downpmt and make up the back payments quickly. Hope this helps. As far as getting your friend some $$, it may or may not be possible, but, remember if you get him out of this situation isn't it the same as paying hime $5300?? So, don't look at it like you have nothing to offer him. Good Luck
  Sam