investor loans: The Truth Always Comes Out
- 02/03/11 05:15 PM
One of the surprising things to me is that it is only now becoming apparent to the outside world that the lenders that are foreclosing on a loan are not the "owner" of the loan. Most loans are sold with in two years of inception and this seems to have been forgotten. What is also forgotten is that government backed programs are the owners of a lot of this debt. This convenient truth is being exposed because lenders are frequently stating that the "investor" (the government) does not participate in the government modification program. WHAT?? sounds like Congress originally passing Obamacare … (3 comments)
investor loans: The Relationship between Lender and "Investor"
- 02/03/11 05:04 PM
There is much talk about the fact that the apparent lender in a short sale, loan modification, Deed in Lieu, etc is not the "owner" of the debt. This is true....a majority of loans are sold within two years of initiation. In this regard, the original lender becomes merely a servicing agent (typically through a wholly owned subsidiary). The last time that I checked, for example, Wells Fargo held virtually none of its real estate and even automobile debt. It historically sells it shortly after the transaction. It is the complexity of this relationship that gives us inconsistency in matters such … (3 comments)
investor loans: An Update on Deficiency Judgment Considerations...
- 02/03/11 04:49 PM
Deficiency Judgments are an area of law, as they apply to real estate, that are frequently misunderstood and mis-stated. There are business cycles that help determine whether lenders will seek a deficiency and their are tax considerations as well. The "investor" (lenders should call them who they really are - the government backed programs) cannot charge down the remaining debt until they have exhausted their means of collection. In other words, a lender cannot properly charge down a short sale deficiency amount until they have tried everything to collect the money i.e. obtain a deficiency judgment. That was a primary … (1 comments)
investor loans: Loan Modifications II Other Reasons Banks will not Modify
- 01/15/11 04:56 PM
Another primary reason that lenders will not modify loans is that lenders have to recognize modifications immediately as losses on their balance sheets. Unfortunately, balance sheets are not an area of great flexibility for lenders at this time. If a lender does not modify a loan, they have some discretion about when they post the loss on the property. Loan modifications post as losses immediately and at the beginning of the trial period. Given that the overwhelming majority of attempted modifications fail (approximately 2/3), non-performing loans are actually better for banks’ books! Additionally, lenders face unclear court rulings when it … (7 comments)
investor loans: Bank of America's new Favorite Excuse
- 12/28/10 04:23 AM
There was a trend in loan modification that those that are CURRENT tend to have a better chance at modification. This was due to the fact that banks are concerned about a home owner paying even after modification (since a majority of loans that are modified subsequently default). Recently, BofA gave me a hard time on two loan mods (that are truly deserving) because the loans were current. I explained that one loan was 60-90 days past due for 10 months this year and that a homeowner should not be punished for doing the socially and financially appropriate thing to do. … (2 comments)
Author Bio: Paddy Deighan earned his Juris Doctorate and PhD Paddy consults with taxpayers in regard to tax liens, tax levies, tax levy, offer in compromise, tax debt, tax settlement
One of the surprising things to me is that it is only now becoming apparent to the outside world that the lenders that are foreclosing on a loan are not the "owner" of the loan. Most loans are sold with in two years of inception and this seems to have been forgotten. What is also forgotten is that government backed programs are the owners of a lot of this debt. This convenient truth is being exposed because lenders are frequently stating that the "investor" (the government) does not participate in the government modification program. WHAT?? sounds like Congress originally passing Obamacare … (3 comments)
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