Where has our bailout dollars really made an impact on the homeowners that are in need?
It seems like many homeowners are just being left out in the cold despite their best efforts to avoid foreclosure. I am currently helping a homeowner with a short sale who has done everything he can possible do to AVOID FORECLOSURE, but it seems that whatever option he has pursued takes him nowhere other than a forced foreclosure.
This homeowner is not a typical homeowner facing foreclosure:
1. He called his lender early on when he knew his financial situation was going change and gave them notice.
2. His initial letter to the Bank received no response only a hand off to account manager the second lender (GT) which did nothing to assist in a loan modification.
2. He was always in communication with his lenders in writing and through certified letters.
3. He hired a loan modification company to help him with loan modification, but both lenders denied the loan modification
4. He accepted a new position at a higher wage knowing his wage was going to be reduced again by 12% in an effort to try to hold onto the home but was denied because it was no longer his primary residence.
5. Without any other hope to save his home, the only option, he had left been a short sale of his home. He hired me and another real estate agent to help him market the property and negotiate the short sale with the lenders.
6. He has been very cooperative with all the papers work for the short sale package as per lender request.
7. The Bank has not responded to his calls to resolve the challenge and will not provide a written acknowledgement of the reasons or what is actually proposed. Everything is hearsay or verbal.
8. Despite the first lender assistance to resolve the sale, the second lender is demanding more than double the average settlement that the industry is accepting for second mortgages.
At this point, I do not know what else we can do to help my client to avoid foreclosure. We are offering the second lender a payoff of $13,500 on a (purchase money second lien of $120,000, 20% of the original loan amount) but the investor is requesting $25,000 or nothing. On a fair market, similar homes in the area are selling for 250-280k; previews purchase price was 645k (big loss for the first lender)
My question, are Banks helping homeowner to avoid foreclosure? I am not sure about that.
Homeowners would like to avoid foreclosure, Banks we need your help!
Comments(2)