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Foreclosure in 91204 : Real Estate Advice

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Activity 2
Wed Apr 20, 2011
Keith Sorem answered:
R.
I am including a link below that may be helpful for you. The practical story is that most homes that are foreclosed have a market value of less than the amount owed. This means that if I owned a home with a $700,000 mortgage, and it was worth $550K, and it was foreclosed, why would I redeem the property by paying more than it's worth, plus the late fees, penalties, and i interest?

Market values are driven by economic forces. Given the downward trend in values, the only time I can see this happening is if the property is worth more than the outstanding mortgage balance, plus penalties.
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Fri Apr 23, 2010
Tommy Lee answered:
Carrie,
Looks like you have a number of answers but none of them gives you a concrete answer. Why? Because every financial entity that has mortgages has different rules. Suppose the lien holder is a major bank. Chaces are then bank will try to work with the landlord. But suppose it is a investment company that bought the mortgage on the open market. They may not be willing to do such a modification. Now suppose the lender is a private lender locally. They may want the property rather than work with the landlord.

Another thing to think about is that most loan modifications do not succeed. I work short sales in your area and pretty much everyone I contact says they are going to get a loan modification. But right now I thnk the percentage that get through the paperwork is about 16%.

My suggestion is to start looking "just in case". If you need help, please give me a call or email me at the email address below.

Tommy Lee
DRE #01723594
tommy.lee@dilbeck.com
323.821.2292
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