Bank Requalify Loan on a Foreclosure? - Posted by AWWMi.

Posted by rm on October 22, 2003 at 07:43:20:


I’m seeing more and more that are just 3 payments behind.

My guess is that the homeowners don’t seem to do anything until they’re told that they’re going to lose their house…

The upside is that the cost to cure and reinstate is lower.

Oh yeah, and it also means more leads.

Bank Requalify Loan on a Foreclosure? - Posted by AWWMi.

Posted by AWWMi. on October 22, 2003 at 01:22:26:

I was told by a mortgage broker (friend) that the bank may require debtor to requalify for a “new” / refinanced loan that was previously in foreclosure… I can see her viewpoint. The debtor defaults and triggers foreclosure procedures. If I understand correctly, After the loan has been defaulted on ( 3 consecutive missed payments) the bank IS NOT obligated to reinstate the loan if they so choose. Being determined in the actual loan agreement. Barring, the expense and time involved to do the foreclosure I could see where a bank would want the debtor to requalify in order to keep the loan from reoccurring foreclosure actions later on. Are there state/federal regulations that keep banks from doing this? I’m not heartless just figure it would secure the bank’s loan positions more aggressively. Whats the odds of a requal happening on a loan an investor is trying to get reinstated. Yeah, bank gets all back payments, interest, penalty fees, golf fees, attorney fees and anything else they can suck the blood out of as well which is their motivation I suppose.
adrian :slight_smile:

Re: Bank Requalify Loan on a Foreclosure? - Posted by Dimpil

Posted by Dimpil on October 22, 2003 at 04:49:51:

Banks will bend over backwards to not have a customer go into forclousure and it usally takes more then 3 missed payments, more like 5, which is 120 days, and the banks will work their best to make some arragements with you even till actaul forclosure.

Most people won’t get a pre approval after a mortgage get’s behind like that. All depends on how high their score was and is at the time.

Banks do not want to own your home under any circumstances and will bend over backwards to help people re-establish their payments. Putting payments on the back, spreading back payments out over a months, whatever. Issue is, people do not talk to the mortgage company, get afraid, allow company to bully them, do not know their rights or how to negoitate.