How to handle preforeclosure - Posted by Troy M

Posted by Troy M on May 19, 1999 at 16:03:52:

Hey all,

I got a call from a woman who is about to lose her house to foreclosure. She has already vacated the house and has it listed with a realtor whom she says is doing her no good. She refinanced about a year ago for 44k @ 13.5% and hasn’t made a payment, so she owes about 5k in arrears. House was appraised when she refi’d at 58K and her realtor did a market analysis showing FMV of 58k also. It’s in a good area as well. I’m going to try to get the lender to discount and would like the realtor to discount her commission too if possible. She has a listing agreement with a 6% commission, but since she’s not involved with any deal we can come up with, I don’t think asking her to reduce her commission to 3% is out of line. What do you think? If she won’t, I may bring in my own realtor who will probably take a note. Anyway, anybody have any creative solutions to these types of deals?

Thanks in advance,


Also, her PITI is $617, the high interest rate will make it hard to leave the loan in place (for l/o or a wrap). Seems to me the lender has to discount or forgive the arrears to make any deal work. Am I missing something?