Posted by JR_FL on November 19, 2006 at 23:14:08:
Yes we are. Its alot of work. Collecting paperwork and really getting to know the people. I use it as a back door to get into a property if they don’t keep up with there payments. My experience is that at least 50% of the people are not able keep up with payments.
forebearance - Posted by Lori
Posted by Lori on November 14, 2006 at 21:31:30:
For Dwan or anyone familiar with short sales. The distressed property owner’s tell me they can accept a
forebearance agreement from Ocwen to pay so much extra each month to make up for missed back payments. Do you know anything about this? Also how effective it might be for someone who is 14 months behind in their payments?
Re: forebearance - Posted by JR_FL
Posted by JR_FL on November 19, 2006 at 21:50:37:
Lori,
JT and Rich gave you some good advice. Depending on the Mortgagee’s situation and the age of the loan it is possible to do both a forebearance and loan modification, with such arrearage. Most forebearance plans first set up with lender will fail due to poor work out plans.
Work out plans need to be made with assumptions of WHAT IF happens. My office works on several per week with people.
forebearance - 14 month arrearage - Posted by JT-IN
Posted by JT-IN on November 19, 2006 at 18:31:48:
Lori:
To explain the basics of a forebearance agreement, the owner is essentially agreeing to pay current payment on time, in addition to a predetermined % of the arrearage payments… Usually these agreements are completed within one year, or less… so if that were to be the case here… with 14 payments in arrears, they owner would be paying their current payment each month plus 1/12 of the arrears. In this case, 1/12 of the arrears represents making an extra payment equal to 1.17% of the payment amount. Confusing, yes… but if their regular payment was 1,000 per month, they would be paying the 1000 current amount of payment, plus 1166 in arrears. Probably a little too optimistic… This is not to say that the lender counldn’t spread it out into more time to make up the arrearage payments, but they want the whole amount brought current asap…
The other thing that this says, that the lender is willing to offer a forebearance with such a large arrearage, is that they really don’t want the house. So they are willing to bend over (backwards) to keep from having to foreclose. This usually happens when their inventory grows to unacceptable levels… so they bend their own rules. Therefore they may offer a longer time period of forebearance than the usual 12 months, as well.
The financial problems that caused the owner to fall behind, must be a thing of the past, in order for a forebearance to have a chance ot work. Their must also be either windfall funds or disposable income greater than they have ever experienced, whihc are rare elements… in these cases.
JT-IN
Re: forebearance - Posted by Rich
Posted by Rich on November 16, 2006 at 15:20:10:
This is true…Most banks offer a forebearance agreement to those who know to ask for them. I’m not sure what you really want to know about them. They’re pretty cut & dry - Fill out the forms, provide the required info, and a letter stating why the homeowner can NoW make the payments. Fax it over, and it gets reviewed by a loss mitigation employee at the bank. In my experience, they usually get approved unless it is REALLY obvious that the homeowner has no way to pay them. They only give them one chance – Screw up and stop making payments after a forebearance and the banks don’t want to work with you anymore.
To answer your other question, 14 months behind would be quite a stretch because the forebearance causes the homeowner’s monthly payment to go up to cover the defaulted amount. If they’re already having trouble making the current payments how will they be able to handle such a drastic increase? Unless they are awaiting an increase in pay or a settlement to arrive soon, this is a disservice to the homeowner and would only be delaying the inevitable.
Now as a side note,If you’re a good negotiator, you’ll get the bank to put these payments on the back end, spread out amongst several months.
Re: forebearance - Posted by Lori
Posted by Lori on November 19, 2006 at 23:06:45:
So, what you are doing is helping the work out plans to succeed? In what way are you working with the people to make this happen? Are you then able to help them save their homes? It sounds like the most helpful thing you could do.
Re: forebearance - 14 month arrearage - Posted by Lori
Posted by Lori on November 19, 2006 at 22:59:43:
This really helps. Sounds like my next step would be to keep in touch, see how it plays out and be there for them in case it folds.