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 8:53 AM In Reply to: Re: Non-performing second / Predatory Lending posted by Pahomes on March 25, 2004 at 8:30 AM : Rick, LOL :) : Let me clarify. We bought the 50K 2nd for 10K. : Now any thoughts ?? : Thanks. ======================================= Thanks for the clarification. I do not believe that you are violating an anti-predatory laws if you modify an existing note since only the original loan was subject to the requirement of Federal reg z and other State disclosures (each State is different). I'd work out the modification agreeement without benefit of any additional disclosures; just pencil it out. I'm not clear of your goal here. If it's to obtain the property, don't make the payments too much of a stretch for a payor. If they file BK later, the court and trustee make take your changs to task. If, on the other hand, you want to make this note performing, then consider making the payments fit the borrower's budget but reduce the term of the note to balloon in a year or two and re-extend it as they make the payments as agreed. Just don't do so without determining if there are any Jr. lienholders; they'd have to consent to any modification terms in writing. Maybe the borrower has additional security or another person might agreed to guaranty payment with EQ from their home (parents, etc.?). It's worth asking, especially since you're offering a chance to keep them in the property. Am I thinking in the right direction for your situation here? Rick Follow Ups: 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: : : Rick, LOL :) : : Let me clarify. We bought the 50K 2nd for 10K. : : Now any thoughts ?? : : Thanks. : ======================================= : Thanks for the clarification. I do not believe that you are violating an anti-predatory laws if you modify an existing note since only the original loan was subject to the requirement of Federal reg z and other State disclosures (each State is different). : I'd work out the modification agreeement without benefit of any additional disclosures; just pencil it out. I'm not clear of your goal here. If it's to obtain the property, don't make the payments too much of a stretch for a payor. If they file BK later, the court and trustee make take your changs to task. : If, on the other hand, you want to make this note performing, then consider making the payments fit the borrower's budget but reduce the term of the note to balloon in a year or two and re-extend it as they make the payments as agreed. Just don't do so without determining if there are any Jr. lienholders; they'd have to consent to any modification terms in writing. : Maybe the borrower has additional security or another person might agreed to guaranty payment with EQ from their home (parents, etc.?). It's worth asking, especially since you're offering a chance to keep them in the property. : Am I thinking in the right direction for your situation here? : 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