HELP! Sale Date Coming! - Posted by mei122@aol.com

Posted by Natalie Smith on November 10, 2004 at 14:30:57:

It’s been my experience that at this stage of the game, the lender wants their money. Recording a deed will not get them their money. I’m not sure how foreclosures work in Illinois, so I am speaking from a Virginia perspective.

You need to find out how much the lender wants.

Do they want the entire loan paid off? This would mean that you would need to get new financing and get the deal closed before 11/23.

Usually, the lender will have a reinstatement fee that will catch up the borrower on their past payments along with all of their legal fees. Payment of this money would stop the sale. The homeowner should have a letter from the foreclosing attorney that states the amount of money required to reinstate the loan. You would still need to make sure you get a current amount, because this number tends to go up as the sale date gets closer.

Normally, at this stage of the game (in Virginia at least), the lender’s loss mitigation dept has already turned it over to the foreclosing attorney and wants them to deal with it. Contact whoever is conducting the sale and see if they can help. You will probably need an authorization letter from the borrower to get the information released.

Good luck!

HELP! Sale Date Coming! - Posted by mei122@aol.com

Posted by mei122@aol.com on November 08, 2004 at 13:59:27:

I received a call from a home owner whose property is in the final stages of foreclosure. In fact, the sale date is coming up on November 23, 2004. The woman wants $2000 to cover moving expenses. She has signed a quitclaim deed and a quitclaim deed in trust. I had her sign both because I didn’t know which one I was going to record. I have not yet recorded the deed. The property is located in Cook County, Illinois. The woman owes about $95k with the ARV at $130k. It needs minimal repairs. I figure I can get a lease option tenant in there to cover the mortgage.

I have made several calls to the loss mitigation department to try to resolve this debt without losing the deal. I have not received a call back. Without having the woman declare bankruptcy, what can I do to “stall” time? If I record the deed, whether it is the quitclaim deed or the quitclaim deed in trust, will it cause the mortgage company to change their legal tactics? Will it delay the sale date? Help, I need answers quickly!