Quote from @Ron S.:
Quote from @Account Closed:
Quote from @Ron S.:
? How easy or difficult is it? There is a federal statute under RESPA that requires the lender to issue a reinstatement/payoff quote within 7 days of the request. That said, you don't get to "Work with them", the borrower does and its not a working with them thing, its a reinstatement thing.
Lenders don't get the choice to reinstate or continue with a foreclosure. If the borrower reinstates, it's done. The borrower reinstates by paying the amount past due to include any fees or costs.
I see some saying if you are honest or nice to the lender or make 12 payments and such stuff, that it should be easy to work with the lender? I'm thinking they are thinking of something else because none of that has anything to do with reinstating a loan in foreclosure.. If the borrower made 12 payments on time, there wouldn't be a foreclosure... Or if there was a foreclosure, it would be a forbearance and i assure you, nothing about any of how the lender is going to handle this has anything to do with whether or not the lender is under scrutiny with a regulator..
Sounds like you are wanting to invest or buy them out or something to that effect? if the notice of trustee sale was recorded, that means the foreclosure sale is imminent, a matter of days. Some states say that the borrower loses the right to reinstate after a certain time. California for example, if you are within 5 days of sale, you have no reinstatement rights. You can only save your home by paying it off within that period. If this is in Pennsylvania, I believe that you can reinstate up to a hour before the sale.
if its a listed property for sale, have the agent send a demand request to the lender/servicer. if its not listed for sale, have the borrower do it. Yes, you can do it with borrower's written authorization. Loan Depot has a fax and email number for demands.
Not to correct you or anything, but I think you are conflating a lot of things here. There is a sequence to foreclosure, the lender has great latitude and yes, if a borrower has a history of lates that were prior to the foreclosure, it's different than if the borrower suddenly stopped paying.
It is not the goal of lenders to own properties and they will work with the borrower, if the borrower shows a credible attempt to recover. Regulators watch to see how many non-preforming notes the bank has and will limit their taking on new loans if they have too many in default.
In a Deed of Trust state they can postpone sales all they want. In a mortgage state they would have to take it through the court system again and many lenders are reluctant to do that. It varies by state and by circumstance. It’s more complex than a simple post allows.
I think you might be conflating your subject to philosophy on foreclosures, and not to pull the "I've been a foreclosure manager for 30 years with a national portfolio" card but, the borrower's performance history has nothing to do with anything in a decision to initiate a foreclosure. Its no different if the borrower suddenly stopped paying or slowly stopped paying over time. The lender does NOT have any latitude unless they want to subject themselves to a UDAAP or Fair Lending violation. The only thing you are correct about is that yes, it's a sequence. Pay or go into default. Reinstate or modify or forebear or go into foreclosure. Execute an alternative to foreclosure such as a payoff, reinstatement, deed in lieu, sale or other action or in the absence of an executed alternative, lose the property in a foreclosure sale. It's that sequence, every time. Yes, there is that elusive "But what about this" scenario but for 99.99% of the time, that's how a foreclosure works.
Also, not trying to be a jerk but, you just don't know what you are talking about. I have annual and semi annual safety and soundness exams and audits from the CFPB, the DFPI and the FDIC and others, and none of our audits have anything to do with how many non performing notes we have to determine taking on new loans. If anyone is limiting our ability to take on new loans, its a different measurement and defaults, charge offs, write downs, foreclosures, etc. are just a few of the many facets of any financial institution's measuring profile. And if we are being limited on taking on new loans, we have many other issues to worry about beforehand that came long before our portfolio performance started to deteriorate.
Finally, you can absolutely postpone in a judicial or non judicial state. You may have to restart at a certain point, you may have to refile or re-notice and other things but, lenders absolutely do, every day. No court is going to tell a lender to not postpone where it is to the potential benefit of the borrower and lenders are not reluctant to postpone if it reduces the risk of ownership to the bank. What you are saying is just not true. I mean, ok, i suppose it could be but I've been doing this for decades in every single state including Guam and Puerto Rico and have not seen what you describe.
We can keep keyboard warrior'ing if you want or, we can put it to rest. I'll stick with my background and experience on this subject and, well, you can stick with yours?
Your comment: "No court is going to tell a lender to not postpone" I didn't actually say that. My reference is that there are procedures for delay and depending on the state and the situation, if the lender exceeds the allowed number of days, they have to start the process over again. They absolutely have the right to delay, but there can be a cost for doing so. (Anyway, that's far more detail than most people are interested in knowing).
Nah, I'm having too much fun to stop. I started buying pre-foreclosures 30 years ago and from what I've said from the buyer's view is correct. By the way, I'm not talking about leading up to a filing of a foreclosure notice, I'm generally talking about after the filing, because that is what the OP was asking about.
For years I've successfully delayed foreclosures by talking to loss mit, then bought the properties. I made my first million doing that. Sometimes they want to get rid of the borrower since they've been a pain the butt with a history of lates, maybe a bankruptcy but lots of avoiding the lender. Banks want to know what’s going on. I’m told there is a Monday morning meeting every week & someone gets their butt chewed if there are to many defaults.
I've also successfully gotten loan mods put together, sometimes I bought the property sometimes I didn't. I was told by a loss mit manager of a major bank that they would do the postponement if I would guarantee purchasing the property because they had an audit coming up and they wanted it off their books.
Once, I delayed someone's foreclosure for a year, while loss mit was trying to figure out if my offer was good. (Ocwen) Well, okay something was going on internally I wasn't privy to, but a year after my first offer, they accepted the exact offer. Banks are not logical. They are political.
Just for giggles, I've actually been sued by Fidelity on a couple of associated cases and won at every level to the 9th District where I won again and they finally gave up. I didn't plan on it taking 6 years, but that's life in the fast lane. Learned a lot about what really happens.
Banks are individual businesses that make individual business decisions. Your job had/has rules to follow. But, not all banks/positions play by the same rules. ;-)
I will agree though, that you are posting about the world as you see it and have experienced it. Cheers.
