All Forum Posts by: Brett Goldsmith

@Gerrard Townes Possibly but depending on servicer and investor they could think something funny is going on. Better to not have family listing the home and representing you. Too close to comfort IMO. 

What support do you need? I'm in LA and a broker. 

@Mindy Jensen Typically the IRS will do a partial lien release for $0 if they are in a non equitable position. They will continue their collection methods post closing on the debtor. The IRS typically does not hold up transactions for a $0 equitable lien position as long as their discharge review is complete.

If they are in a partially equitable position then they will want proportionate funds based off their review and if in a full equitable position, well then they want all their money. If the 1st lien holder is being shorted it's relatively safe to assume that the tax lien is in a $0 subordinate equitable position. Depending on other factors and if it's state tax lien they may want a bit of funds. Typically state tax liens ( at least the FTB IN CA ) can be challenging than the IRS.

Hope this helps!

What type of taxes? Typically the servicer pays delinquent property taxes on a short sale. If it's state or federal tax debt you need to apply for a partial lien release. I get those done on short sales for $0 when they have no equitable position very often but it takes time. 

@Joe Cassandra Yes, there are limits. They vary depending on guidelines. Sometimes it's only one, others it's 1 within 1 year, 2 within 3 years, and 3 within the life of the loan. Just depends.

Yeah, payments can go up for a few reasons. Usually it's due to having a very large arrears. Another reason could be if someone is P&I payment and their loan gets modified into an escrow'd payment PITI.

They used to have the HAMP program which was 2% fixed or at times adjustable. There are also loan modifications with deferral of arrears ( not as common ) and forgiveness ( the least common but possible for underwater properties with certain investors ) . Not all modifications lower mortgage payments. At times modifications can increase the monthly mortgage obligation. It all depends on the numbers and the investor/insurer guidelines. 

SEC. 4022. FORECLOSURE MORATORIUM AND CONSUMER RIGHT TO REQUEST FORBEARANCE.
(a) DEFINITIONS.—In this section:

(1) COVID–19 EMERGENCY.—The term ‘‘COVID–19 emergency’’ means the national emergency concerning the novel coronavirus disease (COVID–19) outbreak declared by the President on March 13, 2020 under the National Emergencies Act (50 U.S.C. 1601 et seq.).

(2) FEDERALLY BACKED MORTGAGE LOAN.—

The term ‘‘Federally backed mortgage loan’’ includes any loan which is secured by a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of from 1- to 4- families that is—

(A) insured by the Federal Housing Administration under title II of the National

Housing Act (12 U.S.C. 1707 et seq.);

(B) insured under section 255 of the National Housing Act (12 U.S.C. 1715z–20);

(C) guaranteed under section 184 or 184A of the Housing and Community Development 3 Act of 1992 (12 U.S.C. 1715z–13a, 1715z– 4 13b);

(D) guaranteed or insured by the Department of Veterans Affairs;

(E) guaranteed or insured by the Department of Agriculture;

(F) made by the Department of Agriculture; or

(G) purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.

(b) FORBEARANCE.—

(1) IN GENERAL.—During the covered period, a borrower with a Federally backed mortgage loan experiencing a financial hardship due, directly or indirectly, to the COVID–19 emergency may request forbearance on the Federally backed mortgage loan, regardless of delinquency status, by—

(A) submitting a request to the borrower’s servicer; and

(B) affirming that the borrower is experiencing a financial hardship during the COVID–19 emergency.

(2) DURATION OF FORBEARANCE.—Upon a request by a borrower for forbearance under paragraph (1), such forbearance shall be granted for up to 180 days, and shall be extended for an additional period of up to 180 days at the request of the borrower, provided that, at the borrower’s request, either the initial or extended period of forbearance may be shortened.

(3) ACCRUAL OF INTEREST OR FEES.—During a period of forbearance described in this subsection, no fees, penalties, or interest beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, shall accrue on the borrower’s account.

(c) REQUIREMENTS FOR SERVICERS.—

(1) IN GENERAL.—Upon receiving a request for forbearance from a borrower under subsection (b), the servicer shall with no additional documentation required other than the borrower’s attestation to a financial hardship caused by the COVID–19 emergency and with no fees, penalties, or interest (beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract) charged to the borrower in connection with the forbearance, provide the forbearance for up to 180 days, which may be extended for an additional period of up to 180 days at the request of the borrower, provided that, the borrower’s request for an extension is made during the covered period, and, at the borrower’s request, either the initial or extended period of forbearance may be shortened.

(2) FORECLOSURE MORATORIUM.—Except with respect to a vacant or abandoned property, a servicer of a Federally backed mortgage loan may not initiate any judicial or non-judicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale for not less than the 60-day period beginning on March 18, 2020.

@James Carlson I stated that it's either paid back in a lump sum or a borrower jumps into a repayment plan. It's in talks that some GSE's may defer the arrears. We will see what the government rolls out in time. 

@Mark Horn That would be huge if true. Would help many from failing during the loan modification review. I wonder if other investors and insurers will follow suit. We shall see.