InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Foreclosure Fundamentals Code References 50 State Foreclosure Basics Foreclosure Glossary Foreclosure Statistics 70+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map About Us Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Much to do about nothing Posted by Antonio on April 04, 2008 at 10:01 AM In Reply to: Much to do about nothing posted by Tom on April 04, 2008 at 9:43 AM Whether they are a lien holder on a first or a second encumbrance does not matter to Countrywide. If the residence is non-owner occupied they will NOT do a short sale. Most of my clients have multiple properties through CW and will be forced to foreclose on them with this new guideline set in place. Also, it's not uncommon for CW to hold a second as I have a few of them that I was previously working on (before last Friday) The question is: How does this benefit Countrywide and their investors? Since they do service loans do they WANT to foreclose on these properties and then possibly charge FEES post-foreclosure? : Only CW knows what their previous business model was, but I doubt if CW did many seconds where they weren't also the first. CW knew all the risk/reward factors in making all types of loans. The other unrecognized factor is that CW or any major lender/servicer only has X number of loss mitigators and short sales are always a long shot. They're probably wisely using their available resources and time to concentrate where their exposure is the highest, i.e. first liens. : Institutional seconds (where the first is held by another party) don't often have enough equity to call the homeowners bluff by foreclosing. If there's considerable equity a homeowner will probably work out some other arrangement before foreclosure. An individual might do it, but it's usually because they can't admit they made a mistake loaning the money in the first place and aren't willing to cut their losses. Your first loss is your best loss. In the right scenario an investor might do it. An institution is not interested in reinstating or paying off the first, as they don't want to put up the cash or track making the monthly payments. It all sounds good in theory, but the reality is it's rarely seen. Lenders know this. Follow Ups: Not as easy as you might think Tom 7:17 AM, 04/07/08 (0) Makes perfect sense to me. JK (the other JK) 11:10 AM, 04/04/08 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Whether they are a lien holder on a first or a second encumbrance does not matter to Countrywide. If the residence is non-owner occupied they will NOT do a short sale. Most of my clients have multiple properties through CW and will be forced to foreclose on them with this new guideline set in place. Also, it's not uncommon for CW to hold a second as I have a few of them that I was previously working on (before last Friday) : The question is: How does this benefit Countrywide and their investors? Since they do service loans do they WANT to foreclose on these properties and then possibly charge FEES post-foreclosure? : : Only CW knows what their previous business model was, but I doubt if CW did many seconds where they weren't also the first. CW knew all the risk/reward factors in making all types of loans. The other unrecognized factor is that CW or any major lender/servicer only has X number of loss mitigators and short sales are always a long shot. They're probably wisely using their available resources and time to concentrate where their exposure is the highest, i.e. first liens. : : Institutional seconds (where the first is held by another party) don't often have enough equity to call the homeowners bluff by foreclosing. If there's considerable equity a homeowner will probably work out some other arrangement before foreclosure. An individual might do it, but it's usually because they can't admit they made a mistake loaning the money in the first place and aren't willing to cut their losses. Your first loss is your best loss. In the right scenario an investor might do it. An institution is not interested in reinstating or paying off the first, as they don't want to put up the cash or track making the monthly payments. It all sounds good in theory, but the reality is it's rarely seen. Lenders know this. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction. Read our privacy policy.

Copyright © 1997-2008, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455