All Forum Posts by: Andrew Meegan

From my math, I have determined that the foreclosure proces on its own eats 22 points out of a deal. Add onto that standard depreciation of 10-20 maybe 30% and foreclosing is just a dumb option for lenders. In the event that the property gets trashed upon the home owner's exit from the home, you can make the depreciation closer to 50-60%. Transactionally, the foreclosure is dumb exit strategy for a mortgage company. They need to get on a short sale as quickly and efficiently as possible, but they never will.

I have posted about it in other threads, but mortgage companies are all too willing to skip fast the short to foreclose.

I've thought about why that is too. Apparently, the fees that can be charged by the collection depts in these companies are somehow making them money. I am looking into it more, but I think if they short sale, the collectable fees are minimal, where in a foreclosure, they get to fee the heck out of files and somehow get the money.

It sounds like you are close. Thank God you seem like a strong willed person and a hard worker. You will get this resolved and get to move on with your life.

too bad at the loss of the $50,000+ down payment though. that really rough.

i wouldn't mind getting my hands on the mortgage preapprovals.

I'm glad to see MA is represented on this forum. How are thing rolling out there these days?

Why do you say that? I have seen shorts on a couple multis, but that was a while ago.

I have a feeling that in the very near future that we will be seeing so many REOs hitting the market that the only way they will sell is in bulk only. We are overstocked right now. Whats going to happen when 1mil+ more homes hit the market between now and December?

Unfortunatley, the last 3 pruchase mortgages I wrote were like giving birth sideways to my first couple loans. I needed to get a character reference for one loan, a reciept for the purchase of an engagement ring, for another to prove the couple was engaged, and income asset docs for a stated stated deal. All 3 of these loans were subjected to waiting almost 3 weeks in the que, just waiting to get to underwriting. Its a mess being a person trying to get a mortgage these days.

The whole process that the servicers put a realtor, mortgage agent and attorneys through to get a short sale done is next to impossible. I have heard more then a few times, a few times from the servcer themselves, that they dont care because they are a billion dollar company. Ever heard of "death by paper cuts?"

A deal I presented in the past. Mortgge was $575,000, offer and BPO were $405,000, they took a pass. 5 amonths later, after the foreclosure, property is listed for $275,000. They were all too willing to say no, just to jump past me, and list it for $130,000 less? I don't get it.

I truely believe we are just still getting under way on this mess. There are far too many homes still in process right now which have not hit the market yet, and many more which still have not even started down the path towards defaulting, which surely will.

Im a bit of a forum junky and have been reading these pages for hours now. Some people will say they are experts in their field at 7 years, but I am a believer that I am only scratching the surface. The speed that this market is moving is unlike anything I could have imagined. Moment by moment I am learning.

Thank you for the warm welcoming. I have some ideas that I will be unloading on these boards soon. I hope to get some great dialogue rolling.

the borrower doesnt have any assets to cover the short. and he doesnt make too too much money. he lived in it for a few years, but he recently rented it out in total because he couldnt swing it owner occ.

now he wishes he just got rid of it entirely.

no problem.