All Forum Posts by: Dion DePaoli

I am not familiar with any 60 day rule. There is a title seasoning requirement for lenders putting out new purchase money mortgages and refinance mortgages with a 90 day seasoning requirement.

To refinance, he should talk to a smaller community bank that may not have this rule in place. Most large banks like BOA, Wells or any other firm that sells into Fannie/Freddie will likely have this rule. To my knowledge, there is no legal restriction that can be placed on an asset post sale by the seller.

They certainly didn't loose money booking the loan. Typically there is a yield spread premium paid based on the rate and terms of the mortgage that is sold. They likely used that fee as their sole source or revenue. Some brokers and correspondent lenders have to follow suit with the bank programs to remain competitive.

Indiana has two different licenses. One is a sales person license and one is a broker license. They are NOT the same. As a sales person you have to work for a licensed broker.

Typically MLS licensing follows a similar hierarchy which helps the board manage responsibility and liability for the listings. You can get a sales person access under a broker. The broker she puts her license with will be able to fill her in on the fees and company policies surrounding their MLS accounts.

If you sign the mortgage and note, you will be locked into whatever the note says your interest rate and terms are. Just because the loan officer has "locked" in your mortgage rate doesn't mean you are locked into the loan. You are locked into the loan when you sign the documents only.

If your current loan officer is not giving you a good deal, go talk with another loan officer and compare the rates and fees. (use the TILA - Truth In Lending Act) which shows you the APR for your loan, this is inclusive of fees and charges and is designed to provide the consumer with a comparison tool.

There is no "responsibility" to report to the credit bureau by you the mortgagee (creditor). In order to be able to report to the bureau you must apply and be approved by each bureau. There are fees for reporting. Typically only companies get approved to report.

You can always hire a licensed mortgage servicing company, which may be a waste of your money, and they have accounts setup already.

If/when your borrowers apply for a new mortgage, that lender will check with you regarding their payment performance and history which will be taken into account. As for helping them improve their credit score via reporting them, unless you report to the bureau, there is not much you can do.

I disagree with some of the above posts.

First you have to understand how the bank services their properties. Some local and community banks will do in house servicing and some banks and investors will contract a servicing company to do so. You have to deal with the correct party.

The notion that all these jobs are taken, frankly is hogwash. (sorry folks). I have repeatedly needed to hunt down new agents for our REO's because I wanted a new fresh firm to work with or we entered a new market, etc. There is a ton of opportunity if you look in the right place (even more if your good!).

The post above that said you have to be visible is true. And certainly each investor, servicer or bank will have their own criteria of what they want in an agent. The primary parameter, be good! Be on top of my assets, have a solid marketing plan and help manage and sell the property in a efficient manner. I always say, no one will care more about my assets than I do, but the REO agent should be a close second place.

As an agent, you can speak to local banks. You can also contact mortgage servicing companies and ask them for the REO department and ask how to get approved on their list. Most don't understand this is usually a 3rd party list supported by RES.net or LPS or some other of the same and is not in house.

Speaking from experience, you will only have one chance to impress remember to make the most of it. I as an investor have always been very hands on with your assets. When the investor or servicing asset manager calls and identifies him/her-self, treat that as important. When you get your assignments treat them as they were your own assets. I have terminated many relationships as firms get large and service levels drop.

Lastly, please know and understand what your asking to become. REO agents are a bit different. As an REO agent you need operating capital in most cases. All expenses are paid by the investor but you may have to fork out money upfront and payment from the investor or servicer may be net 45 days. You need to have contacts which trust to work with. Any sub-contracted service is a representation of you, if they fail, you fail. Also, have more than one option. Having one contract is great, but I want to see I am getting a fair deal, and I will request 3 quotes. Don't commingle services, if you are also the contractor, I usually will be mindful of being taken advantage of. Hope that adds some additional clarity.

This is a scam. Any foreclosure defense attorney will do most of what they are referring to in defense for a borrower. Typically these folks focus on the affirmative defenses which include the current note owner and mortgage owner are not one in the same by way of faulty paperwork. The public tends to believe these folks because they want to.

Fact of the matter, the mortgage in and of itself as a lien in the chain of title can not be "extinguished" or canceled. The mortgage can be satisfied by the owner of the mortgage but is generally not court order. Some of these firms use the term fraud as a hot button so people relate to what they are saying. Tugging on the strings of emotions as everyone feels like they got cheated. Unless that is not your signature on the mortgage and note it is likely not fraud.

In my experience, borrowers and their legal counsel have used the multiple claims that you hear such as don't have the note, not the owner of the mortgage, etc as defense. I have never lost a case for the above. I have been buying non performing loans for many years and our firm specializes in cleaning these situations up. Assignment and allonge chains for the mortgages and the notes can be completed if there is a break. Even if the company who is in the chain is no longer in business. Mortgages can legally be reformed and even if the original note is lost, legally they can deal with this as well. (mortgages don't get lost if they get recorded, the note does because it is not). All of these tactics may get additional time for the borrower but not cancel or halt the process in any substantial manner.

Further, as stated above. Many firms are still illegally collecting fees from borrowers selling this false hope. Mortgage modifications, if done by 3rd party, are to be licensed per the law that passed last year or a little earlier. That fee can not be collected unless the modification is successful. A final comparison, typically a foreclosure defense attorney is going to charge a little more than $2,500 for his time and effort. The above fees don't seem to cover that sort of service which says something.

Chris, frustrating experience it sounds like.

It wasn't clear what the balance of the note was nor what type of interest the note had. I do not fully agree with all the replies that a further discount on the note is required. It sounded like there is a little equity in the property. That being said, Gary is not high on the list of attracting investors. If the payments have been made on time with good consistency then perhaps what you want to target is an investor who is interested in the yield coming from that investment.

Michael,

Most note participation really only take place in larger balance loans. Typically you see more of these secured by commercial property as opposed to residential. There is a hierarchy inside the note between the investors who has control and how loss will be shared, etc. These are not really things you want to get into with limited experience.

Toni,

Typically small regional and community banks service their mortgages in house. From time to time they may contract with a servicing company. Contacting the Loss Mitigation Department of that servicer is a place to start but most servicers are not built to run those inquiries well. Speaking with a bank's asset manager who has control over their special assets division which is just another name for the "loans that don't pay well" is always going to get you into conversation a little quicker than trying to navigate the larger servicing platforms.

Regarding pricing. It is relevant. I see people try and describe price expectations all the time and they are not good generalizations but that is about it. The discount that a seller is willing to take can be identified as a percent of the balance of the loan (UPB) or the value of the real property via appraisals or broker price opinions (BPO). It seems many people interchange these concepts for good talking points.

When you see percentages that are low like in the 30% or less that is not likely based on the real property value. No one is that silly. No note owner is going to take a deep loss for you.

Typically what you will see related to say non-performing loans, as you get closer in the foreclosure timeline your offer or bid as it relates to the current real property value will need to be higher. Each state is a little different with the time and process to get through the process of foreclosure and it really becomes a matter of time value of money to the note owner. In most cases with a little foreclosure timeline left you can purchase the loan for something in the mid 60% of the current market value.

It is also important to note, that two people may view the property value different. So if I say the property is worth $100 and we say 65% that is different than you saying its $90 and paying 65%. At the end of the day, the real base of communication is the dollars you wish to spend. The same disconnect occurs when talking percent based on UPB, where if I told you I wanted 90% of UPB you might think I am crazy and that is too much, but if the property has say 50% equity the story is a little different.