I Reinstated Loan....Now What's the Bank Up To??? - Posted by mark

Posted by JohnBoy on September 10, 2003 at 23:08:17:

If the bank in this case was not required to accept 11th hour payment to reinstate the loan, and if they were trying to find the seller to return the money, then wouldn’t they have foreclosed on the property then, instead of allowing it to stop? It sounds to me like the bank accepted the reinstatement.

I Reinstated Loan…Now What’s the Bank Up To??? - Posted by mark

Posted by mark on September 10, 2003 at 05:35:00:

After several months of trying to negotiate a ‘short sale’, I had to settle on ‘reinstating the loan’ one day before the auction date. It is still a good deal.

At the last minute the bank said they had everything they needed to consider a short sale except for the ‘financial statement’ of the owner…who by the way was no longer even in the state.(FLORIDA) I told Washington Mutual that even I was having a hard time bumping into the owner since the house was thirty miles away and he had no phone, but I was sure he hadn’t gone anywhere. The bank also mentioned to me that if the owner had transferred title to me, it may be considered an illegal transfer. Actually we had put the property into a ‘trust’.

Today the bank called and said someone had reinstated the loan and wanted to know if the owner was out of the picture. My wife who answered the phone said he was not out of the picture and she basically said we still wanted to buy the property. We are not sure if they realize it was us who reinstated the loan.

Here is my question: WHY DO YOU THINK THE BANK CALLED US AFTER THE REINSTATEMENT WANTING TO TALK TO THE ORIGINAL OWNER? Here are the possibilities as we see them;

A) They know the owner is probably not a good loan candidate any longer and still want to continue with a short sale.

B) They are suspicious about the reinstatement and are trying to find a reason to call the loan due.

ANYBODY HAVE ANY GOOD IDEAS ON THIS ONE. I DON’T INTEND CALLING THEM BACK UNTIL I CAN FIGURE OUT WHAT THEY MIGHT BE AFTER. I CAN SAVE ABOUT 18K BY DOING THE SHORT SALE VERSUS MY REINSTATEMENT. Thanks.

Re:Now What’s the Bank Up To??? - Posted by TheShortSalePro

Posted by TheShortSalePro on September 10, 2003 at 07:39:02:

In many cases, the mortgagee is not required to accept 11th hour payment to reinstate the loan, especially if the reinstatement monies weren’t adequate to cover mortgagee’s foreclosure costs (attorney, title searches, Clerk of Court fees, etc.). Perhaps the mortgagee wanted to return the ‘reinstatement’ money to the owner, and was having a hard time reaching that person.

Sounds like you might not have fully thought this through.