Reinstating a loan - Posted by Rudy

Real Estate Investing
1

Posted by CJM (No. CA) on April 15, 2003 at 20:25:08:

I’m not an expert by any means, but dealt with a similar situation recently with the exception of the owner filing BK.

  1. Get the owner to sign an authorization to release information
  2. Call the loss mitigation at the bank
  3. Ask them how much to reinstate the loan

This is what I did and it worked for me.

Good luck!!

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Reinstating a loan - Posted by Rudy

Posted by Rudy on April 15, 2003 at 18:50:46:

I found a pre-sale foreclosure, where the owner filed BK right before the sale, so the sale was rescinded. I cut a deal with the owner, waited the 5 days before signing a deed, and I’m now trying to get a reinstatement amount from the lender, but they have told me to call a law office, who has bounced me around and/or not returned calls.
1)Anybody know a good way to get a quick response regarding reinstatement.
2)how do I assure myself that the payment I make will in fact reinstate the loan, rather than having the bank just apply it to principal?
3) I need to do this under the guise that it’s coming from the owner, since I’m taking over their property subject to the existing loan. Any recommendations?

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Re: Reinstating a loan - Posted by IB (NJ)

Posted by IB (NJ) on April 16, 2003 at 07:09:26:

Rudy. In my experience, you have to go through the lawyer to get a reinstatement letter IN WRITING (Do not make a payment until you have the reinstatement amount in writing). The letter gives you the total amount needed to reinstate the loan. You will need to fax the attorney a signed authorization letter and a letter requesting the reinstatement amount. If anyone (bank, attorney, etc.) asks your relationship to the seller, tell them you are a family friend trying to help out.

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Re: Reinstating a loan - Posted by Jane Gray

Posted by Jane Gray on April 15, 2003 at 23:19:54:

I also had to reinstate a 1st mortgage after purchasing a home through a 2nd deed of trust foreclosure sale. If you can get it, getting the owner’s social security number may help you also get loan info through the bank’s automated phone line once you have things in progress. Until you have dealt with the attorney’s office that is dealing with the foreclosure, though, you probably won’t get far with the bank. I didn’t.