help with foreclosed friend - Posted by Phil Pelletier
Posted by Phil Pelletier on September 12, 2003 at 02:40:23:
I typically hang around the mobilehome board, but I just found out a friend in Pittsburgh, PA has not paid his mortgage in, get this, 3 years! He filed BK and dragged his feet, and came up with excuse after excuse, etc. Here is the background followed by a question: He originated a $60,000 home loan with PNC Bank in 1992. They were the lender until 1999, when he stopped paying them all together. About a year into this mess (12 missed payments and numerous opportunities to make good on the loan, all ignored), he got a call from Washington Mutual bank. They informed him they had purchased his loan, and they were wiling to work out a payment plan with him. He went the BK route and staved off the Foreclosure for almost 24 months after hearing from Washington Mutual. Recently, he got a call from a company called EMC Mortgage, Loss Mitigation Office. They informed him they had purchased his loan and they would need some cash up front to begin a payment plan at 17% interest and blah, blah, blah. My question is this: What do you think PNC sold the loan to Washington Mutual for? What did EMC pay for the loan? It has been a nonperforming asset now for 36 months. Not a thing dime has he paid. The bank even paid his taxes every year. EMC now wants $61,000, $12,000 down and $700/month for 360 months. What do you think EMC paid for the loan?
I would like to help him out by negotiating with EMC, but I need the advice of an expert regarding nonperforming asset sales. The home is probably worth about $100,000, tops.
Anyone who can call me to discuss this, please do. I can be reached at 503-709-8184, Portland, OR.