InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Foreclosure Codes 50 State Resource Data Foreclosure Glossary Foreclosure Statistics 60+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Non-performing second / Predatory Lending Posted by Rick Harmon on March 25, 2004 at 7:46 AM In Reply to: Non-performing second / Predatory Lending posted by Pahomes on March 25, 2004 at 7:30 AM : We have bought a second. : FMV 125-140K : 1st: 71K : 2nd: 50K (12K is late interest) : HO's payments are: : $800+ to the first, and $532 on our second. : HO lost his origianl job, is now re-employed, but making less money than before. He wants to do a loan modifcation with us. He currently has a 15 year mortgage with us. We don't believe he has the financial capabilities to stay above water for long. $700 in bank account. : If we were to modify his loan, are we exposing ourselves to a predatory lending lawsuit? on the basis that we weren't sure of his qualifications to meet the new payment. : His monthly gross is $2500/mo. : Thanks in advance. ===================================== Geez, Louise, where's the deal? You're worried about modifying a Note in order to increase the cash flow when there's no equity. What are you gonna do if the payor defaults? You'll be upside down immediately because you don't have any protective equity to pay your holding costs, advances, fix-up, legal, etc. If you increase the monthly payments from the payor and they default and file BK on you, you're enven more exposed (unprotected). I don't mean to be too harsh but I don't think avoiding predatory lending laws is the big issue here. You're best course of action is to swap this Note for something else before it get's worse. Or, go thru the motions and use it as a (maybe expensive) tuition cost. However, I'd be very relucant to put any MORE money into this deal because it's a disaster waiting to happen. Rick Follow Ups: Re: Non-performing second / Predatory Lending Pahomes 8:30 AM, 03/25/04 (3) Re: Non-performing second / Predatory Lending Rick Harmon 8:53 AM, 03/25/04 (2) Re: Non-performing second / Predatory Lending Pahomes 10:41 AM, 03/25/04 (1) Re: Non-performing second / Predatory Lending garyr 4:32 PM, 03/26/04 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : We have bought a second. : : FMV 125-140K : : 1st: 71K : : 2nd: 50K (12K is late interest) : : HO's payments are: : : $800+ to the first, and $532 on our second. : : HO lost his origianl job, is now re-employed, but making less money than before. He wants to do a loan modifcation with us. He currently has a 15 year mortgage with us. We don't believe he has the financial capabilities to stay above water for long. $700 in bank account. : : If we were to modify his loan, are we exposing ourselves to a predatory lending lawsuit? on the basis that we weren't sure of his qualifications to meet the new payment. : : His monthly gross is $2500/mo. : : Thanks in advance. : ===================================== : Geez, Louise, where's the deal? You're worried about modifying a Note in order to increase the cash flow when there's no equity. What are you gonna do if the payor defaults? You'll be upside down immediately because you don't have any protective equity to pay your holding costs, advances, fix-up, legal, etc. If you increase the monthly payments from the payor and they default and file BK on you, you're enven more exposed (unprotected). : I don't mean to be too harsh but I don't think avoiding predatory lending laws is the big issue here. : You're best course of action is to swap this Note for something else before it get's worse. Or, go thru the motions and use it as a (maybe expensive) tuition cost. However, I'd be very relucant to put any MORE money into this deal because it's a disaster waiting to happen. : Rick : Optional Link URL: Link Title: Optional Image URL: [ 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 © 1997-2004, 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