12mo loan mod failed, $190k equity,knocked his door $20k behind

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12mo loan mod failed, $190k equity,knocked his door $20k behind

Christopher Abernathy
Solarcity FEC · Torrance, CA · Member since 2015 · 89 posts · 13 votes

 so I have a homeowner that is not working with anyone yet like investors or short sale agents to help them with his pre-foreclosure and he comes outside and says yes let's talk "I'm worried because the bank wont I answer my calls I've been calling for weeks and im 20k Behind".  I let him know that he shouldn't worry and that we will save him if last option and help him not ruin his credit and lose the home .

 Homeowner is  20k behind 

 House is worth around 500K 

 190k in equity 

 He owes around 306k

 He mentioned that he had a 12 month loan mod that just fell through. 

  My question is before I hand this off to an investor as a wholesaler should i go in for a contract. what should be my steps in this situation at this stage. Should I build rapport with the homeowner and try to help him qualify for keep my home California or should I just prepare him to sell the home home 

. BTW home is in great shape well taken care of does not need many repairs and he also has a family wants to keep the home.

But does he have time? 

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Sean OToole
Investor · Truckee, CA · Member since 2013 · 546 posts · 445 votes
9y

PS don't forget to set up an alert to send you a mobile notification if anything changes, like a new notice being recorded. 

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    He should list it and sell it.. in your market that takes all of 30 days.. and if its in great shape he will get top dollar.. you should take the listing... and if your not an agent you should become one.. that would be 10 to 15k in your jeans for a few hours work.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    PS his credit is already trashed ...

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  • Christopher Abernathy
    OP
    Solarcity FEC · Torrance, CA · Member since 2015 · 89 posts · 13 votes
    9y

    @Jay Hinrichs understood. At what point could he not list with an agent? I am 60% completion of cal rea license online here. Im intereted in wholesaling the property yet it sounds like his best interest (helping him keep most of his equity) would be to list. 

    Thx again. 

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    if you have not already you may want to consider a property radar app for your phone so you can quickly check if there is a foreclosure scheduled for this property.. that will tell you how much time you have

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  • Christopher Abernathy
    OP
    Solarcity FEC · Torrance, CA · Member since 2015 · 89 posts · 13 votes
    9y

    i have a full property radar membership i have yet to find a mobile app for them though? 

    Property radar says sale date was supposedly begining of FEB. stated default amount was around $9k-$12k behind. He mentioned he was $20k in default. 

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  • Carmen Massie
    Financial Advisor · Houston, TX · Member since 2017 · 12 posts · 3 votes
    9y

    Hi Christopher,

    First, you need to have the homeowner contact the bank and find out if their is a sale date. If bank will not answer I am pretty sure he has received a letter from the bank or foreclosure attorney handling the case. You need to know if sale is judicial or non-judicial. You will also need to find out who is the investor on loan (Bank Owned, Fannie Mae, Freddie Mac, FHA or etc). That will make difference in the foreclosure process.

    Second, the amount that is listed on your property radar may be the amount in default at the time the bank started the foreclosure process. If homeowner claims modification failed remember that can extend default another 1-6 to months due to loan modification application and processing and new default amount has not been reported or seen through property radar.

    Third, the only way to assist this homeowner is for homeowner to sale property on their own and keep equity or do a short sale then the lender will control the sale and not the homeowner.

    Another note anytime a homeowner does a repayment plan, loan modification, short sale or deed in lieu with their lender their credit is already ruin. One of the guidelines for doing a loss mitigation option with the lender requires the homeowner to be in default.

    1Reply
  • Sean OToole
    Investor · Truckee, CA · Member since 2013 · 546 posts · 445 votes
    9y

    @Christopher Abernathy if there is only a notice of default, the date we show is the earliest date it could go to sale by state statute, not the actual sale date. Real sale dates start once a notice of sale is filed. We have mobile apps for iOS and Android, just search the App Store or go to our website for links. 

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  • Sean OToole
    Investor · Truckee, CA · Member since 2013 · 546 posts · 445 votes
    9y

    PS don't forget to set up an alert to send you a mobile notification if anything changes, like a new notice being recorded. 

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Christopher Abernathy  property radar app.. got me a deal in lake Oswego OR.. that is a killer.

    I can now pay for 50 years or more of subscriptions based on that one deal .. and still have money to go to dinner..

    that is the coolest app ever and for all sorts of reasons..  Its a tad complicated for me.. my staff runs it but all you younger investors that grew up on smart phones and apps this should be a snap.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Sean OToole  I do have a request for your app though.. can you put nexrad on the google earth so I can see the weather as well ?  that would be cool..  ::))

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  • Christopher Abernathy
    OP
    Solarcity FEC · Torrance, CA · Member since 2015 · 89 posts · 13 votes
    9y

    @Sean OToole kim helped out tremendously. BTW. now if i could just convince him of how little time he has.. im going in with a contract. :) 

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  • Sean OToole
    Investor · Truckee, CA · Member since 2013 · 546 posts · 445 votes
    9y

    @Christopher Abernathy great to hear, best of luck on the deal. Be sure to make sure your contract complies with civil code 1695, super important in CA. 

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