Foreclosure in Los Angeles>Question Details

Tom, Home Seller in Orlando, FL

Will bank work with defaulting owner when loan amt. is same as home value and owner has very low income?

Asked by Tom, Orlando, FL Fri May 15, 2009

My elderly father has (just this month) outlived his savings. His only income is Social Security. His mortgage (held by SunTrust) is almost exactly what the house is worth. He has no money for realtor fees or other expenses. We have been subsidizing him for years and cannot pay more. We'd like to keep him in the house for about 6 more months while we (and he) accumulate savings to place him in a retirement center. We don't need advice on how to place him, we need advice on how long SunTrust is likely to allow him to stay if he pays less monthly while trying to sell the house. Any suggestions re SunTrust and their policies specifically?

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Hi Tom,

I am familiar with Sun Trust and from their website it is clear that they are trying to assist borrowers who are 60 days late first. This does not mean to go late to get their attention however. However, since he is now late on his mortgage you might look for a range of options available at this point. There is the FHA write down refinance. There is a short sale, there is a Deed in Lieu option. There are several options. Here is a good website that will go over all your options. Good luck!
0 votes Thank Flag Link Sat May 16, 2009
Tom I would really like to speak with you over the phone if possible. I would like to explain some options and they would be too long and complicated over this site. I am not trying to have you call me for a sales pitch, but I would really like to offer my advice and expertise, especially since your father is older and I know needs some help right now. There are options and they aren't out of your reach. Please call me 323.359.7992

0 votes Thank Flag Link Fri May 15, 2009
HI Tom,

I am not familiar with Sun Trust, but I know all of the banks are willing to make some type of adjustment, the owner just needs to have a hardship. My advice would be for you to speak with the bank and see what arrangement you can make.
0 votes Thank Flag Link Fri May 15, 2009
Hi Tom,

While I'm not aware of SunTrust's particular policies, I'm sure if your father can show hardship in making his payments that the lender will listen and perhaps be able to modify his loan for a short/long period. It is always a possibility and certainly worth asking. The bank is more likely to deal with someone who can make the lower payments if they choose to modify the loan than someone who can't make the payments at all. Keep in mind, it takes about 3 months of non-payment before the mortgage goes into default, and if you talk to the bank early it looks better and they will be more likely to work with you.

Let me know if you need any further help and good luck!

Best Regards,

Grant Linscott
Keller Williams Realty
323.333.6222 cell
0 votes Thank Flag Link Fri May 15, 2009
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