Mr. M Soliman

Every answer I read herein is likley to stand legal scrutiney. But disclosure is a necessary part of any contractual agreeement (anyone care to comment here) . In this enviroment full disclosure is not a bad idea . A nominee or assignee provision would likley be discussed upfront and subject to some qualifying contingency ...correct? - Tue Feb 3 2009, 03:00

NET INCOME OF $120,000 IS $10,000 A MONTH. NO SCHEDULE C FILED? IS THE INCOME STABLE AND CONSISTS OF 24 MONTHS?

UNDERWRITERS ANALYSIS
Rate of 5.5% +/-
Ann Income 10,000.00
DTI % 38%
Consumer 1,000.00
Taxes&Ins 500.00
Prin& Int 2,300.00

Loan Amount 460,000.00 - Tue Feb 3 2009, 00:47

Not but why wait. Lenders are dropping the amount they are owed on negotiated settlements.

Recent examples:

Brentwood $ 1,165,000 to $200,000 Pending
Antioch $ 650,000 to $180,000
San Leandro $ 495,000 to $200,000
http://www.borrowerhotline.com - Sat Sep 13 2008, 14:42

Oh yeah! Take that to the bank. Let's all meet here in 12 months and talk about how high prices use to be in summer of 2008.

Thanks Wall Street ....for the CDO debacle. Hey what do you call a lender crossing the str....forget it! - Wed Jul 30 2008, 04:21

Pre foreclosure is not really a clear or properly stated term for a question! This site often awards "Best" answers where the responding party is "assuming" they know what the question intended. That's frustrating and promoting reckless industry jargon. Wikipedia will not even let you come close to this type of corresponding amongst parties.

So, correct me if I am wrong but;

1) after 60 Delinquent - borrowers receive a notice of intent. NOI
2) after 60 to 150 days - Notice of Default
3) after 150 Notice of Sale
4) after 21 days Sale date and let's assuming one week - cash for keys offer.

Nothing is set in stone here as to a lender postponing. It's after 180 days the property, If not sold at auction; it becomes a classified bank asset or REO.

My take is that at 60 days delinquent, TWO PAYMENTS, an asset is considered delinquent and the receivable considered impaired. That means it is potentially non collectable but prior to reserving pursuant to GAAP. Therefore it becomes a "classified" asset or "PRE RESERVE" non-current asset. At that time prior to a Notice of Default you have a true pre foreclosure. After the NOD you are in foreclosure.

The Notice of Intent period is brief and hell to gauge. That however is the best period of time for acting on a true Pre Foreclosure.

Nearly 25 years in banking and I never heard of a pre foreclosure outside of my explanation. Erick’s answer is probably most appropriate in that it is nearly impossible to know such a status unless you have access to a person’s credit report or servicer’s records. Both scenarios are unlawful. So my question here is – What are you all talking about? http://www.borrowerhotline.com - Sat Sep 13 2008, 13:31

Forced short sale‘s: Though highly controversial the FSS is a realistic third option to the other alternatives. A lender can arbitrarily stall a proposed sale that falls short) of the outstadning principal . Lenders will require updated financials on the seller and often information about the buyer. They will take forever ordering and then losing and then reordering a BPO valuation. Then they may say no! - absent of a reason. That’s very frustrating considering most short sale prices are at a higher anticipated value than the home will fetch as an REO. Buyers also tend to back out as they get frustrated waiting.

Don’t forget the fact the seller is doing all the lenders disposition work in order to get a 1099 charge to borrower tax liability at year end for the deficiency. It is almost insane for a seller to consider

The key is to negotiate the sale regardless of the short amount through an attorney. Calculate the estimated closing statement and determine the net proceeds to the bank as a payoff. The attorney will call the lender and ask them to accept or reject (demand letter) the wire amount which he will represent can be assured in whatever the closing term is. Since attorneys will talk only to the lenders counsel (generally) no servicing agent bozo’s to contend with. The seller can even reduce the amount offered the lender by including himself for 5% of he sale. Realtors will also find this a great way to avoid lender's unethical grinding tactics related to commissions.

Forced short sale’s work - Trust me! After 25 years as a lender I decided enough was enough. Let the public have a fighting chance. The process works with ten times the efficiency of a lender short sale. Remember, the lender does not, never ever, need to see the HUD 1. There adults, take the money or they can lose altogether and forget the deal. Otherwise, everyone wins with a Forced SS. http://borrowerhotline.com admin@borrowerhotline.com - Fri Sep 12 2008, 06:46