Long Island…,  in New York

Facing Possible Foreclosure to Real Property and Seeking Financial Advice?

Asked by Long Island Real Estate, New York Wed Jan 30, 2008

Part 1 of 2 parts: I’m a real estate broker in Long Island, New York. After my own experience from working with principals facing foreclosure and reading posts from various discussion forums to the subject, I went online with a client in a financial dilemma to seek mortgage financial advice from financial consultants that lend money and consultants that do not. The criteria submitted were 600 credit score, present household income, and the only financial asset to fall back on is the equity in the property.

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11
NonRealtor, , 23456
Fri Dec 5, 2008
Some people should not have been able to buy houses. You're finding out who they are. Gambling with your own money is risky, gambling with borrowed money is disasterous. That's the situation many of these people are in. Nobody wants to loan money to the gambler that has already lost borrowed money. I'm not a gambler, but I'd bet your friend / client will be finding a new place to live soon. Good Luck
0 votes
Stephen Maha…, , Valley Stream, NY
Thu Dec 4, 2008
I know an attorney that specializes in loan modifications and preventing foreclosures but time is of the essence. If you would like to discuss further please contact me at smahabir@hillcourtrealty.com
0 votes
Debt Free Da…, , 85260
Sun Aug 3, 2008
This article might give you additional insight.
0 votes
Gateway Solu…, , New York, NY
Sun Aug 3, 2008
You need to act fast! I can lower your mortgage payments without having to refinance your loan! We can stop the foreclosure process with the many connections we have at banks! Call today and start saving tomorrow! 877-822-7468. I look forward to helping you with your present situation!

Danielle
0 votes
Long Island…, , New York
Thu Mar 20, 2008
Fraud Victum,

By publishing your unfortunate circumatances to the public will definately help someone else not do anything, make an agreement or commitment to anyone associated with real estate or money without the approval of a real estate or finance attorney to the endevor.
0 votes
Fraud Victim, Home Buyer, Maryland
Thu Mar 20, 2008
We hired Shawn Peck of Peck Holdings LLC & Nationwide Equities, to help modify our mortgage. In November 07, I paid him $750 which was required up front. He almost immediately said he had reached a agreement with my mortgage company and promised the settlement papers would arrive for us to sign.

I called and emailed him constantly. Each time there was some excuse or he would claim to have spoken to them and it would be a couple of days. He even told me it would be ok not to pay the mortgage and that it would all be added into the new loan. I finally got tired and called my mortgage company. They had never heard of him. While they had some papers they could not proceed without my filing something. Shawn Peck insisted that he had indeed been speaking with them.

By this point I had not paid the mortgage and am in trouble. The next thing I knew Shawn Peck had taken $550 from my bank account. I called him and told him it was fraud. He mentioned the agreement I signed which only states that I owe more money at the end of his service. What it actually says is that I would owe another $500 and then an additional $500,when everything was done The remedy per the contract if I didn't pay, was to put a lien on my property. He claims that he was allowed to draft my account which he was not. I filed all the necessary papers at the bank and filed a police report. Now I find he has taken another $1000!!! My bank says it takes 90 days to give me the money back. This person is a thief!
BEWARE!!
0 votes
Shawn Peck, Home Buyer, Cherry Hill, NJ
Thu Feb 21, 2008
Google me Shawn Peck chapter 13 refinances and forclosures do not lease to own with an investor have someone neg with the bank and set up arrangments read my articles and call me if you have any questions
0 votes
Jennifer Nav…, , Chandler, Gilbert, Mesa, Tempe, Phoenix, Scottsdale, Apache Junction, Queen Creek
Wed Jan 30, 2008
There are loan products out there like the FHA streamline; if the owner had an ARM that they were making timely payments on before the rate adjustment kicked in, they may be eligible for this program...

Have you tried http://http://www.hopenow.com ? This is a non-profit counseling agency for homeowners in tough situations. They have direct contacts with the right people for lenders, know what can/can't be done, and help to create a clearer picture of the homeowner's options. Your client should speak and work with them, and as their Realtor, you should be there for any additional questions they may have (no brainer) :)

But here's the key... If they end up going to short sale/preforeclosure sale, you and your client will have the advantage because by going through the counseling, you will have been given the direct contacts within that lender's loss mitigation department. That's the longest/hardest part in trying to conduct a short sale-- it's because you're trying to chase down the real 'decision maker' for that lender.

Hope that helps. It's always a hard situation...
0 votes
thinz, Agent, Allenhurst, NJ
Wed Jan 30, 2008
If your client has equity in the property, then a loan modification is something to consider pursuing. Depending on the current mortgage terms, you may be able to get the lender to defer principle payments to the back end of the note to keep the note current...I've had success doing this with clients having a low 600 score...Doing a short sale, or deed-in-lieu is basically giving everything back to the lender including any equity. With a short sale, you can't walk away with any proceeds from the sale. With a foreclosure, technically you could get money back if the lender gets all their due, including fees for the foreclosure, and there is still money left over...highly unlikely in this market. If you have a substantial amount of equity in the property, the lender will more than likely pursue the foreclosure option to get it through a bid up process in the sale. This of course depends on your numbers. If you don't have much equity in the property, a short sale could make more sense for you and for the lender...You have more room for negotiation because the lender will not want to get stuck with the home, or see you get bankruptcy protection to avoid paying them.

But, I'd talk to the lender first about a loan modification (if they want to stay in the home) to get the homeowner through the leaner times, or if that is unsuccessful, pursue the short sale if they are prepared to leave. If they want to maintain the credit they do have, and build it up, they should continue payments or doing a short term loan modification until the short sale occurs. The impact to their credit will be mimimal as compared to pursuing a short while not making payments...The deed-in-lieu is more of a realistic option when there is more equity in the home. If not, many lenders are refusing this option flat out.
0 votes
Gail Gladsto…, Agent, 11743, NY
Wed Jan 30, 2008
There are several things you can do before going into foreclosure...ask if the lender will renegotiate the loan so that the payments can be tolerated; short sale and transfer the balance still owing to an unsecured loan so that good credit can be maintained; a deed in lieu which is just turning the keys to the property back to the bank and the final is foreclosure.

I would be happy to provide the name of an excellent bankruptcy attorney who works very hard at helping folks keep their properties and if at all possible, avoid bankruptcy.
Web Reference:  http://GailGladstone.com
0 votes
Long Island…, , New York
Wed Jan 30, 2008
Part 2 of 2 parts: these are the results: out of twelve returned calls from our inquiry one lending consultant stated that the best option available was to sell the house. The other eleven lenders stressed creative refinancing strategies to hold the property. We called one source to financial consultants that do not lend money, fanniemae.com and we received one call from them. FannieMae’s financial consultant’s advice was to sell the house. I’m sorry we made the inquiries to the consultants that lend money, the phone won’t stop ringing.
0 votes
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