Has anyone heard of an alternative federal program that would allow a lender to accept a property from an underwater/defaulted borrower and exchange it for a property from the lenders REO inventory as an alternative to a Deed in Lieu of foreclosure and not report the event negatively on the borrowers credit?
It sounds too good to be true but I have a client who has been told the program exists however I have not heard of it, don't see it on the HUD site anywhere and none of my resources has heard of it.
If you know of anything like this please share!!
Have a Happy Thanksgiving!
Andrew
Tags:
I have not heard of this. But it sounds very interesting. I need to get my head around how this would work.
I have not heard about this type of program. Let us know.
This makes zero sense. If servicers/investors had an interest in making numbers right for a homeowner, they would do a reasonable loan modification. I have never communicated with anyone who received a real loan modification resulting in a smaller monthly payment. I'm guessing these happen for bank execs only. So, if banks don't make an effort to adjust the value of the known bad asset for the homeowner, why would they swap assets taking the chance of being wrong on the value of 2 assets and on top of that, let the homeowner off the hook?
How many people would gladly accept the BPO plus 20% as the new principle owed for a loan mod? Yet the bank would rather zap the homeowner credit and foreclose/short sale around BPO just to stick it to homeowner. No, banks have no interest in making things right or easy for homeowners even if it means more for the investor (that being the taxpayer in most cases these days - so who cares, right?).
What you suggest is not in keeping with bank "philosophy" and it obscures numbers, costs extra money in closings by throwing in another asset to question.
© 2024 Created by Brett Goldsmith. Powered by
Short Sale Superstars, LLC and www.ShortSaleSuperstars.com does not endorse the real estate agents, loan officers, attorneys, real estate brokers and other participants listed on this site. These real estate profiles, blogs, blog entries and forums are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a short sale. Short Sale Superstars, LLC takes no responsibility for the content on these pages that are written by the members of this community.