help with foreclosed friend - Posted by Phil Pelletier

Posted by Rick in Erie on September 20, 2003 at 19:48:44:

Just to add the one piece of info I have…though not really affecting the deal, I work for PNC Bank and the reason they sold the loan to Washington Mutual is that PNC sold it’s entire mortgage company to them. The loan was not sold because of deliquency, all of PNC’s mortgages went to them, even the performing ones!

help with foreclosed friend - Posted by Phil Pelletier

Posted by Phil Pelletier on September 12, 2003 at 02:40:23:

I typically hang around the mobilehome board, but I just found out a friend in Pittsburgh, PA has not paid his mortgage in, get this, 3 years! He filed BK and dragged his feet, and came up with excuse after excuse, etc. Here is the background followed by a question: He originated a $60,000 home loan with PNC Bank in 1992. They were the lender until 1999, when he stopped paying them all together. About a year into this mess (12 missed payments and numerous opportunities to make good on the loan, all ignored), he got a call from Washington Mutual bank. They informed him they had purchased his loan, and they were wiling to work out a payment plan with him. He went the BK route and staved off the Foreclosure for almost 24 months after hearing from Washington Mutual. Recently, he got a call from a company called EMC Mortgage, Loss Mitigation Office. They informed him they had purchased his loan and they would need some cash up front to begin a payment plan at 17% interest and blah, blah, blah. My question is this: What do you think PNC sold the loan to Washington Mutual for? What did EMC pay for the loan? It has been a nonperforming asset now for 36 months. Not a thing dime has he paid. The bank even paid his taxes every year. EMC now wants $61,000, $12,000 down and $700/month for 360 months. What do you think EMC paid for the loan?

I would like to help him out by negotiating with EMC, but I need the advice of an expert regarding nonperforming asset sales. The home is probably worth about $100,000, tops.

Anyone who can call me to discuss this, please do. I can be reached at 503-709-8184, Portland, OR.


Phil Pelletier