Lenders Unload Mortgages to Collection Agencies

By
Real Estate Agent with Vanderbilt Realty of Naples BK3115920

We knew this was comming. Bad news for all those Short Sellers.

 

Lenders unload mortgages to collection agencies

ORLANDO, Fla. - April 21, 2010 - Lenders are selling second mortgages and home-equity lines in default to collection agencies that have the right to collect this money potentially for decades.

"It's a big business, and investors are coming out of the woodwork," says Sylvia Alayon, a vice president for Consumer Mortgage Audit Center, which analyzes mortgage documents for lenders, advocacy groups, and attorneys.

Real estate professionals will be doing their short-sale clients a big favor if they urge them to get professional advice before they sign agreements, Alayon says.

A new government short-sale program aims to prevent banks from reselling this debt. Sellers covered under the program will receive notice that secondary lien holders have received part of the proceeds of the sale "in exchange for release and full satisfaction of their liens."

Source McClatchy/Tribune News, Jim Wasserman (04/19/2010)

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Tim Ireland 04/22/2010 02:38 AM
  2. Kristine Allcroft 04/23/2010 12:11 AM
Topic:
ActiveRain Community
Location:
Florida
Tags:
florida rea lestate

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Rainmaker
1,462,764
Jeremy K. Frost
Keller Williams Realty - Dripping Springs, TX
Associate Broker, CNE, CRS, ePro, PSA

 

 

Thanks for sharing this valuable information. It's posts like this that make active rain great!

Apr 21, 2010 09:14 AM #1
Rainmaker
1,431,289
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Who will you negotiate with then? Lien holder or the collection agency? This is not good news for people that are already in trouble.

Apr 21, 2010 09:22 AM #2
Rainmaker
147,292
Rolando Trentini
F.C.TuckerEmge Realtors, LLC - Evansville, IN

21 2010

Great information. Thanks for passing this along.

Apr 21, 2010 09:25 AM #3
Rainer
390,848
Constantine Isslamow
Century 21 United Realty Inc. - Peterborough, ON
"Training and Accountability"

Thank you for posting and sharing your very informative article.

Wishing you continued success.

Apr 21, 2010 09:26 AM #4
Rainmaker
185,974
Cameron Wilson
Labrum Real Estate - Murrieta, CA
The Short Guy - Murrieta,Temecula,Menifee Californ

It's siple sure stupidity for some of the lenders not working with distressed sellers then turn around and selling the second mortgages for pennies on the dollar.

Apr 21, 2010 12:00 PM #5
Rainmaker
395,029
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

Good advice. IMHO no short seller should sign anything without having an attorney review what they are agreeing to. Then the seller does not end up any surprises.

Apr 23, 2010 01:18 AM #6
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Rainer
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Dominic Pallini

Naples Florida's Best Values
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