Re: What’s the address? - Posted by JohnBoy
Posted by JohnBoy on May 24, 1999 at 19:33:38:
It’s an instituional lender. Their attorney that was handling the foreclosure was eventually fired from the lender because of screwing this up from the begining.
The guy is just a deadbeat that doesn’t care. He’s now on disability from his postal job. The local branch manager stopped by on Sunday when he noticed 2 cars in the driveway as he was passing by the house. He thought the guy had moved out, but caught up to him at the house on Sunday. He tried again to get the guy to just deed the house back and offered cash to leave.
The lender said the guys actually a nice guy but he told him that he knows it’s just a matter of time until he loses the house and since they keep dropping the ball on this foreclosure process he’s just going to stay there living for free until they finally get him out.
The attorney the lender hired kept screwing up the foreclosure process. Then they had to start all over again. They finally fired the attorney and got another one but now they have to start the process all over again. Meanwhile the local branch manager will get $20k a month written off as a loss against his branch for each month this loan is in default. Eventually the lender will get it back and sell the property for as much as they can get.
The local manager says he has $30k a month in losses being docked against his branch right now and this additional $20k will bring him up to $50k a month in losses against his branch. This was also the very first loan this manager did when he was transfered to this branch. So he’s kind of desperate to save as much of it as he can before it’s written off against his branch as a total loss.
He told me he has people that are in default where he tells them he will cut their payments in half for 3 years with a balloon due and if they keep current on the new payment they will refinance them in 3 years to buy them time until they’re financial situation turns around. He said he can’t even get these people to agree to that. They have to end up living somewhere and they tell him they can’t afford to pay anything.
He’s got another one that he just sent the paper work down on that is going into foreclosure. He said the loan is $39k and he’ll let me have it for $30k right now. The loan is about 2 years old. 2 story house, needs a little work on the outside but doesn’t know about the inside yet. It’s right next to a college campus which would make a great rental property for someone.
It amazes me how much this lender will bend over backwards to help these people to save their home rather then foreclose on them. Cut the payments in half in hopes that their financial situation will get better in a few years. Has another one that the payments were about $1100 a month. The womans husband split town and she just wants to give the house back. The lender has agreed to take $300 a month until she can sell the property.
I can understand the lender wanting to avoid the costs and time with foreclosing, but this seems a bit to much to me. If I was to ever run into a problem on my loan payments I have with them I hope they’re still being as generous.