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Updated about 5 years ago,
- Investor
- Kingston, WA
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Loan mod for borrower who quitclaimed property
We have a NPL on a SFR property in Illinois with a foreclosure sale date next month. Borrowers finally came to the table for a loan mod earlier this month (they have been disputing the debt for a few years). They submitted their financial statement and appears to be able to afford a reasonable monthly payment. Now, here's the hair on the deal:
They quitclaimed the property to another party in 2011 and they stopped paying the loan around the same time. Our research indicates that they do not reside in the property and the party to whom it was QCD'd is living there.
Of course the borrower is still responsible for the debt and has not yet filed BK to delay the foreclosure. I really do not want another foreclosure in our portfolio and would like to get this loan reperforming despite the above outlined circumstances.
If the borrower agrees to the modification terms and starts performance (including current on prop taxes & insurance), is there anything I need to consider or have concern? @Steve Hodgdon, you have any thoughts on this one?
Thanks