Sometimes there is no logic whatsoever in what banks are doing to us, good taxpayers. Here is the sad story of one of the homeowners who was struggling with foreclosure for 6 years and couldn’t do anything to save her house…
The homeowner, I will call her Mary, felt behind her mortgage payments in 2005. She had two mortgages, 1st mortgage for $350,000, and 2nd for $110,000 with the total of $460,000. Two years of negotiating loan modification with both lenders brought zero results. Short sale offer for $310,000 was rejected as too low in 2009. At the auction, in 2010, somebody bid $320,000 and the bid wasn’t accepted as the bank wanted $340,000. The bank took the house as REO property and six months later the house was sold by the REO company for $238,000.
Summary: the first bank didn’t receive mortgage payments for almost 6 years, which account for almost $159,000. The first lender could’ve stopped the bleeding five years ago by modifying the loan, or accepting a short sale two years ago for $310,000. Nothing was done to cut losses and keep Mary in the house. I guess the bank is happy now after it sold the house for $238,000, paid 6% real estate commission, plus legal fees, paid to the management company and the sheriff to evict Mary. After all expenses were paid, the first lender would probably net around $215,000. Why the whole system is so screwed up? What do you think?
As always, we appreciate referrals and we work hard to have your deal CLOSED. Visit www.GetLowRate.com for our loan programs. We originate:
- FHA loans – 3.5% down, 580 minimum FICO score
- Jumbo loans up to $5,000,000
- 203k renovation loans to serve short sale and REO buyers
- No Income Verification Loans – 30% down is required
- Condo loans in newly constructed buildings or buildings not approved by FHA
- Coop financing
- Reverse mortgages for senior citizens
Our Commercial Division, GNCommercial, will arrange financing for the following types of properties: Mixed use, apartment or office buildings, hospitality, warehouses, retail and industrial. In most cases the DSCR has to be at least 1.25, max LTV – 70-75%. Income and Expense and Rent Roll forms can be downloaded at http://www.getlowrate.com/form_doc.html.
Do not miss today’s rates:
Apartment building financing* – 4.75%
Mixed Use building financing: – 5.125%
Hotel Construction Loans: 12 months LIBOR plus 3%
* – up to 12 Units, max LA is $1,000,000. Rates will vary for different types of properties and higher loan amounts.
Call us first to prequalify your buyers. Do not spend your time and gas running around with your buyers if you don’t know their qualification for a mortgage. Let us first do the work.
