Refi a foreclosure into a short sale?? possible

Foreclosures, Short Sales, Tax Foreclosures
1

A good friend of mines brother is in foreclosure. We were talking this weekend when I met him at a BBQ. Apparently he let the home go into foreclosure after failed attempts to modify the mortgage.

Situation is, purchase home for $540K with Option ARM loan in 2006. Stopped paying 2009 when market really collasped in FLorida.

House is worth about $250K now and wants to know if possible to refi the home to close to FMV with a subprime lender out there. Anyone have options? Family income in $100-$110K a year gross so a $250K mortgage is doable income wise.

Just not sure if there are options besides letting it go. He is using a law firm to fight it but would like to resolve and keep home. He is not paying taxes or insurance, bank is.

2

If he can pay the mortgage he needs to make his payments.

3

he isn’t making payments, bank is paying the insurance and taxes, and he wants to know how to “resolve and keep home”,

it’s one thing when someone has lost a job or had another problem that has caused them to miss payments, this is someone trying to get a free ride on the back of the bank,and we wonder why the banks are having problems

4

What a disgusting reply. :flush

Did they really brainwash you to the point where they can rape you in the bunghole over and over again, yet still have you stand up in their defense?

Sorry for the bluntness, but to say that the “banks are having problems b/c of people looking for a free ride” is ridiculous. We, THE PEOPLE, are having the problems… not the banks!

To the OP, I don’t have info on a subprime lender, but good luck to your friend. Hope he finds what he’s looking for!

5

I don’t defend banks, but I don’t defend people who scam “the system” which those of us that pay taxes and paying our bills end up paying for…

If you like people that treat obligations like that, then you can loan him the money

6

The house in question was bought as investment property with another investor who screwed him and many others in the process. The other investor got caught and went to jail but in the end the mortgage was in his name only with the other investor doing the rehab and reselling. Big mess.

He was renting home out for a couple years but was just not covering the bills on the home. Eventually he gave up on paying this home and being upside down so much for 2 years. House never sold, market crashed. We all know.

Since his current home is a rental on month to month he would like to just move out now and take this home over. It has been sitting vacant for awhile actually. He just goes by and checks on it. Stopped renting it when it went into foreclosure actually.

Looking for options to keep home. I know on a short sale it go for about $250K.

7

This isn’t an example of “scamming the system”.

And I won’t go further into this discussion b/c you obviously don’t have the slightest clue as to where your taxes are actually spent or the manipulations within economic booms and busts. Just don’t try too hard to be the local dimwit nice guy.

8

OK guys…it’s ll right to disagree, but please do so with some civility and without name-calling!

Keith
Moderator

9

Problem with our entire system is we allow people to file bankruptcy and discharge debts legally. In Europe this does not exist in many areas. In fact debts follow down to your kids and spouses. Much stricter. So people are more prone to use cash. If the USA adopted stricter polices our economy would be different. However it problem be worse since less spending.

Fact is, banks make money no matter what. If someone is making min payments for 3 or 4 yrs on debt they have probably paid the purchase. They still stimulating the economy and creating job growth through retail, food, entertainment, even collection agencies. It is all a big cycle.

The deadbeats to say are just as important as the good ones. Yes there is a lack of responsibilities here. Many people, including ultra wealthy have gotten into jams. Got swindled out of millions. Look at Madoff., enough said.

10

banks/mortgage companies giving people mortgages that never should have had them was the first problem in the real estate market, because the market was going up they thought no one would get hurt…but when it stopped going up subprime loans crashed.

Then people that lost jobs or had other setbacks started getting foreclosed on,all of that is to be expected, but people that have the money to pay a mortgage, but don’t for 2 years, then want to know how to ‘get it straight’ should know the answer, pay your mortgage and get it caught up,

If I bought a house for $250k, than later is worth $125k, I don’t think think the government “owes it to me” to pay the difference,and lets face it, it is the government (which means all taxpayers) that really end up getting hurt, because the banks, or many of them, are considered 'too big to fail"

As long as people are quick to walk away from mortgages, then the lenders will be hard to deal with, as they are now,I have many tenants that normally would have been buying a house, but can’t get financing because lenders are so quick to decline people for anything,until that changes, we will have a housing problem.

It makes me money, I buy houses cheap, and rent them out with people “waiting in line” to lease a nice house,but in the long run the bad housing market hurts our country, we have to get the housing market straightened out,it won’t happen overnight, but hopefully at some point it will start happening

Do I trust the big banks,no, if you knew how much money I lost in the S & P 500 (say big banks) in 2008 you would cry,believe me, I wanted to,

11

When government serves free drinks by printing money, driving rates down, and overspending. Wall street tends to get drunk. When the hangover comes the average person will blame the drunk and not the bartender. Hunter Lewis