1st Call To Loss Mit Dept
Hey guys..I am in the process of touching base with the loss mit dept for a sub 2 property I am acquiring very soon. I am trying to inquire as to what options there are with regard to a forebearance or modification.
I have a direct # to the rep handling this particular case. I keep getting a voice mail. Should I leave a detailed message stating that I am a friend of the homeowner and that I have an authorization to release loan information, and that I am interested in trying to help my friend (the homeowner) in getting the loan reinstated? Or shoud I keep trying until I get him live?
Also, the homeowner's father told me that he has been dealing with the loss mit person (the same person I am trying to reach) and has recently sent in the HUD-1 and now was requested to send in recent paystubs in an effort to delay the FC. Does it seem as though the loss mit dept is already trying to work out some sort of forebearance?
Thanks in advance.
Brian
A HUD1 implies a preforeclosure sale.
The mortgagee will expect the mortgage to be satisfied at closing, not involved in a Sub2.
[addsig]
I just spoke with the loss mit guy. He seemed pretty nice. He actually talked with me for a bit before I had even faxed anything in. I am now waiting on him to call me at home to discuss the options.
From what he told me before I faxed in the Auth to release form, Wash Mutual would ask for the payments in arrears to be packed in on the future payments, and in his opinion, "almost double the mortgage, which would be too much for the young homeowner to handle". If we went through the loss mit dept, which, BTW is first american loss mitigation, they may be willing to do something, certainly not less than half of the past due amount owed, but would need a slew of things from the homeowner....such as paystubs, w2's as well as a few other things.
Do we try to go and get all these things together, (which may be tough, as the homeowner is somewhat tough to track down) or simply say we can pay X - amount now (half or whatever) and will begin with the normal payments in 30 days?
Thanks in advance.
I just had a recent case with an elderly couple whom I was trying to help get a forebearance.
After speaking with the person handling their file in the loss mitigation department and reviewing the financial status report I submitted, it turns out the forebearance would not have been ideal for the couple seeing that their dti/debt to income was slightly higher than their income.
However, the loss mitigator was in agreement to do a modification where they would put the arrears (only the total mortgage they were behind in excluding attorney fees, etc) at the end of the loan. The homeowner would only have to come out of pocket the attorney fees, administrative fee etc, and their monthly mortgage would have increased by $20/month vs having to come up with 50% down and putting the balance at the end of the loan.
This was explained to the homeowner. However, by them being in their 80's they were not receptive of this idea. I suppose the reason being is that prior to me coming into the picture another investor tried to "STEAL" their home right from under them. They had been dealing with these people thinking they were going to "refi" and they were to receive $10k at closing. This took nearly five months and was told not to make any mortgage payments. This is how they got into foreclosure. The blessing for the homeonwer is that the people who were so called handling the "refi" hired an attorney to do the closing. At the closing is where the attorney saw they were doing things unethically and told the elderly couple not to close.
I was totally upfront with the homeowners of what I could possibly do and was willing not to charge them...I felt bad for them!
Botton line, they ended up filing Ch13 while I was trying to negotiate with the Loss Mitgator; which is fine.
What did I get from this, the experience of dealing with Loss Mitigation and that they are not the "enemy"...The person that helped me was quite nice...I have also learned that there are bad seeds in every entity.
Do the right thing as a Real Estate Investor. There is no need to take advantage of people because they are temporarily down. One day the tables will turn on some you who call themselves "REI"....Watch out, God is always lurking about!
Is it the norm for the loss mit dept to want all types of financials from the homeowner facing FC, even after I call with the authorization form? With my current deal, the homeowner is pretty young (25) on drugs and simply not making the payment. He does still work, so his pay stubs, w2's and bank statements will show that. Will this hinder our ability to neg. a forebearance?
He is behind abour $3200 with another payment coming up on the 15th of next month. We were hoping to get at least half put back into the loan and to start making the current payments immediately. Is this unrealistic?
Thanks in advance.
1. Forebearance request - loss mitigation will expect 50% of the arrears. The balance is attached at the end of the loan
The monthly financial status report will show all of their monthly expenditures and income they receive. Have the homeowner have all statements ready for you, including medical bills.
If there is dti is excessive, Loss Mit may offer to modify the loan; if they don't I would ask them if they would be willing to "modify".
2. Modification request - loss mitigation will expect the homeowner to pay the attorney fees, admin. fee etc. The arrears will then go at the end of the loan and the monthly payments should not go up to much...the rep will tell how much the increase will be.
They will fax you a list of things they will need in order to modify the loan:
a. hardship letter
b. financial form (which they should have from the forebearance request)
c. most recent pay stub
d. most recent bank statement
e. an appraisal of the property.
All of this must be submitted within a time frame.
I hope this helps.
They have only asked for 2 recent paystubs and an expense statement to filled out. Once he shows that he makes at least $200 over the note and his monthly expenses, they will consider a modification. If he makes too much, however, they said they will simply opt for a payment plan for the backpayments, with it added on to his normal monthly note. I know his income is not going to show that however.
Wish us luck!
Millionaireinthemaking, thanks for the help.
Suntzu18