Hello,
I wanted to know if a person is in foreclosure for lets say 10k. Will the bank take a note on that 10k and include it into the mortgage payment. I have heard of this happening but with people in bankruptcy. Is it possible to do if someone can show proof that the house is going to be sold or if the owner comes up with some amount of the 10k. And yes the bank is still taking payments on the original mortgage.
Thank you, Youngone
Howdy Youngone:
It is called a forbearance agreement where the bank basically adds the back payments to the note. It does not have to go to bankruptcy. The borrower has to show a hardship letter and proof of income and a lot of banks are doing this instead of foreclosure. It really depends on the bank and the property etc as there are a lot of variables.
If this fails you can get a judge to issue a TRO to buy some time to get the deal closed if you have a buyer ready to buy but can not close fast enough.
Thank you once again,
Another question how can I get a bank to structure a forebearance agreement with a homeowner that I come across that is in foreclosure or does this have to be done by the owner themselves. or If I have an authorization to release info form from the owner can I present this to the bank.
Howdy Youngone:
It is done by the homeowner. Sorry I was not clear here. To sell the property and assume the loan the loan must be current and you would have to qualify.
One you get the forbearance agreement approved you can just buy the property sub2.
I am currently working on one under the same conditions that is scheduled for foreclosure 12/7. I will try to keep you informed on how it goes.
Thank You, Tedjr and I will keep you informed on how my deal works out.