All Forum Posts by: Ron S.

While your question was directed at Bill, I'd start with the CFPB. www.consumerfinance.gov. That will cover the federal rules.

Then, go to your state's website to get the state rules. Since you are in California, i'd start with http://www.courts.ca.gov/1048.htm.

California is unique (As are some other states) in that the state laws are often more restrictive than the federal laws. As an example, California has the "One Action" rule against deficiency.

Happy reading.

@Bill - There are no mortgage workout requirements on a Federal level. There are requirements that if you have a modification program, you solicit the borrower for one and provide them time to return a complete package before you can commence or continue with foreclosure (End of dual tracking) but, there are no workout requirements. What I mean is, you are not requied to offer the borrower a workout unless you have a workout program and the borrower is qualified for a workout.

There is no 6 month requirement before you can start foreclosure. There is a 4 month requirement. (Check CFPB regulations on the commencement of foreclosure).

Short sales allow anything a lender will allow. There are no Federal prohibitions on the borrower's side as far as benefitting is concerned. Not sure what you are trying to say here.

Inteferring with an insured bank is a Federal offense? Define interference.

Tactics to prolong foreclosure is NOT a Federal matter. There is nothing regarding prolonging foreclosures OTHER than that the lender/servicer is not required to work with a borrower that uses tactics to delay or stall a foreclosure.

It's not new that some banks write off losses. Banks have been required to write off losses since FASB and GAAP rules were developed! Not foreclosing is not new either. It's a business decision and sometimes a local or state agency that stops or stalls the lender from foreclosing and sometimes, it's not in the lender's best interest to foreclose but that's nothing new. The vollume may be new but not the tactic.

The laws today are unrecognizable from 8 years ago. Federal oversight that didn't exist 8 years ago and trumps any state law, where it is more restrictive. As an investor, the opportunities exist the same today as they did then, for short sales (I can't speak to subject to) but the competition is better educated and informed, as is the consumer.

As a guy that was in the crash of the late 90's as well as the crash of 08' and in the banking industry, I can say at least from my perspective that it's a different world and in my opinion, one for the better as far as laws and regulations go. Yes, we are regulated to the point of ridiculousness and to the point where it can be cost prohibitive to be compliant but, the protections afforded to the consumer are for the betterment of everyone and, it really weeds out the used car salesmen and boiler room operators that prey on consumers.

I would not follow the advice of meeting the BPO agent at the property. Influencing a BPO agent could kill the deal as it's expressly forbidden and its almost guarranteed that the BPO agent will inform the lender that the buyer or their representative attempted to influence the price. If I were the lender, I would deny the short sale request on that issue alone.

As Wayne points out, submit it and forget about it because no, the agent and the seller don't work with the lender to come to a value. The lender has their value, The agent has their CMA or other valuation method and comes up with a price to list and submit for purchase. Where there is a disparity, THEN they talk and again, as Wayne points out, a competent agent will be able to navigate through the mindfield and settle on an agreeable price with the parties to the transaction.

If you are a potential agent on this, and this is your "first rodeo" on a short sale, i'd engage an experienced short sale agent to assist you or share the listing. You risk wasting your time and the time of the seller if you aren't experienced in short sales as an agent and based on your questions, i'm guessing you aren't experienced in short sales.

and @Mike, not sure if it's YOUR post (the format of the postings on this site changed so, it's hard to follow who posted what, at least for my screen) but, whoever posted that BK stops it, isn't entirely correct. It stalls it yes, but it doesn't stop it. If they aren't going to start paying on it and get it current, the lender will move for relief and based on the numbers the OP stated, will get relief and continue with the foreclosure so, why spend $2M filing BK and further destroy credit, to stall a foreclosure for 60 days that's gonna happen anyway.

XYZ will still be the senior lien holder and all rights preserved meaning, they can and will foreclose and wipe everyone else out if theye are in fact validly the senior lien holder. No foreclosure behind XYZ will wipe out XYZ. Even if someone forecloses (Anyone), XYZ is in line to get paid first no matter what else transpires. They can simply file their own foreclosure.

If I were XYZ, I wouldn't bother with the title claim or going to court to invalidate the sale. I would just file my foreclosure and be done with it.

NOD lists the amount that is delinquent. The NOTS (Notice of Sale) will typically list the total debt. The NOD can list the original loan amount and date but doesn't need to. If the NOD is the same as the original loan amount or similar, that COULD mean (Not that it does...just that it could) that the loan has matured and the deliquent amount is the total balance.

I'm in California and I send and receive NOD's daily. The first paragraph explains your rights, under that explains the amount due and includes the disclaimer that "It will incread until your account becomes current". Then it states your rights, their rights, duties, yadda yadda. It ends with how they came to the right to foreclose (The exact section of the California statute that gives them the right to file the NOD) and oh, they do it in like nine languages.

There is no change in the way NOD's are filed. The NOD is the amount past due. The NOTS is the total debt due and gets filed 21 days before sale.

@Wesley - my post was meant as a reply to Jeremy's eroneous statement. Not you. My apologies for the confusion.

I think you are leaving a lot out of this Jay and making some assumptions. There are NO redemption rights to buy in a non judicial foreclosure. While OR does both, the benefit of doing Judicial foreclosure versus non judicial ended with the passage of SB558. Prior to SB558, lenders would foreclose judicialy to avoid mandatory mediation. Now that lenders have to go to mediation (Unless they file an affidavit of exemption with the state) they hardly ever do a judicial foreclosure and if they do a non judicial, there are NO redemption rights.

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You are never going to find out what's owed at any recorder's office. You only find that out by getting the payoff demand from the lender/servicer. They don't record the balance of the loan anywhere. Think about it, that's like updating someone's credit report monthly! Isn't going to happen.