Posted by Laura on December 04, 2001 at 10:52:48:
With this in mind, wouldn’t the Lis Pendens lists serve a double purpose? A loan officer could either refinance and save the owner’s house (and credit), or give the owner the chance to bail out, leaving the officer in the position of an investor to buy a house with equity. Sounds pretty simple.
Thank you for your responses.
Ed, is it possible to refinance a preforeclosure? - Posted by Laura
Posted by Laura on December 03, 2001 at 23:35:50:
I don’t understand the foreclosure process very well (still learning). I do understand public records can be accessed in the courthouse. If a homeowner is behind in payments and facing foreclosure (but not in it yet), is it possible to refinance, using the existing equity (if any)to help them get caught up? Could a very creative loan officer help people keep their houses by doing this?
Thank you
Re: Ed,is it possible to refinance preforeclosure? - Posted by Ed Garcia
Posted by Ed Garcia on December 04, 2001 at 09:44:27:
Laura,
The answer to your question is YES, if the borrower has enough equity to go to an equity lender. Usually when a borrower gets behind on their house payment, they are behind with their other creditors as well. So an equity or Hard Money Lender could pull them out if they have enough equity.
If the borrower did not damage their credit and their financial problem is a temporary one. The borrower could go to a finance company such as Beneficial or America General and get a second mortgage to cure their first.
In any event, remaining equity will be the salvation of the deal.
Ed Garcia