Bailout Loan for People in or Pending Foreclosure

[mwgreco]

Hello everyone, some of you might find this of use... There is a Foreclosure Bailout Program in all 50 states that is available to people who are in foreclosure.. The parameters of the loan are as follows: The max LTV is 85% which means you need to have at least 15% equity in the home.. Stated income is ok and Your credit score dosn't matter... The interest rate you will get will be suitable for your income... If money problems still exist the lender will write you a Neg-am loan to bring down your payment to something you can manage. The lender will actually sub lease the property to you for a 12 month period which will give you "On time" payments so you can then refinance back to a stardard loan. Just thought some of you would want to know this program exists.. .. You can email me if you have any questions. Thank you, Michael (I am a Senior Loan Officer that specializes in Foreclosures).

[HRx]

Is it possible for you to articulate the pros and cons of this particular type of loan? The information you can share openly/freely is better.

-Todd

[HHM]

Well, I can tell you one con of Neg-am (Negative Amortization) is that your payment does not typically cover your monthly interest, so the principal balance of the loan actually increases over time.

Also, these loans typically have adjustable interest rates and the principal is not amoritzed meaning none of your payment gets applied to the principal balance of the loan.

And be wary of any of these sub-lease programs, what that means is that you NO LONGER own the house, you become a renter.

If you have a decent mortgage already, a chapter 13 BK usually makes more financial sense than getting into one of these types of loans. The reason being is that cash flow (why you are considering BK etc) is generally a short-term, temporary problem for most people, so why get into a long-term bad deal to address an otherwise short-term problem.

These types of loans are typically used by real estate investors in rapidly appreciating real estate markets as it minimizes the investors monthly cash outlay while they attempt to flip the property. So, again, whether these loans make sense also depends on your local real estate market.

[HRx]

My question was rhetorical in the sense that I wanted the poster to articulate all the con's associated with this particular type of loan personally. You know............disclose the fine print.

[nextel8fan]

please send me info to [email protected]. we live in Indiana

[mwgreco]

Responce to Foreclosure Bailout Questions

The Cons - Well.. I believe anything short of losing your home is a Pro . If I had to find some cons they would be as follows.. This is a Lease and Buy back program which means this company will contractually purchase the home from you for a 12 month period. You will continue to live in the home and pay the mortgage... At the end of the 12 months, the house will be sold back to you at the same price it was purchased for (plus any minor interest).. Cons would be if you don't make the payments ontime for that 12 month period, you home is gone... another con would be assuming a neg-am is written you will probably pay about $1000 more to buy back the home (which in the scheme of things isn't bad).. If the loan does not carry a Neg-am then the intereste rate will probably be somewhere between 10-13%... Please keep in mind that this program is a temporary one, 12 months.... It is just a stepping stone between being in foreclosure and being able to refinance into a normal program.. Establishing a 12 month ontime payment history will enable you to qualify for a sub prime refinance. Please feel free to submit any follow up comments. Thank you, Michael

[jennyd]

how do i apply

[Samantha]

For everyone to know, the lease and buy back program should always be the last resort. That program is basically an investor who purchase your property and gets all of the benefits of the equity in your property. usually they refinance the home and take equity out of the property meaning the house have to have enough equity in it for the lease to buy back program. Now if you have equity in your home it is best to refinance your home. If you are in foreclosure their are no credit requirement you can go up to 90 perecent loan to value we donot look at your credit.

Pros to Refiance while in foreclosure or bankrupcy: you get to keep you home and enjoy the equity in your home. you can pay off all of your debt which will leave you debt free except for your mortgage will be your only monthly payment

The con: higher interest rate.

If you have any other mortgage questions or if you are facing foreclosure please contact me for advice

Thanks
Latoya

[Samantha]

Now how the lease to buy back program works is you have to give ownership to the investor and they will refinance your home take out their fee plus all the other fees that have to do with your mortgage as far as closing cost. Than on top of that you are making payments for a home that is not really yours because it not be in your name. That is crazy it would be best to sell the property and get your money and go and purchase another home or refianance your home .

[midleman]

Yeah this is really going to help (not)

Hello everyone, some of you might find this of use... There is a Foreclosure Bailout Program in all 50 states that is available to people who are in foreclosure.. The parameters of the loan are as follows: The max LTV is 85% which means you need to have at least 15% equity in the home.. Stated income is ok and Your credit score dosn't matter... The interest rate you will get will be suitable for your income... If money problems still exist the lender will write you a Neg-am loan to bring down your payment to something you can manage. The lender will actually sub lease the property to you for a 12 month period which will give you "On time" payments so you can then refinance back to a stardard loan. Just thought some of you would want to know this program exists.. .. You can email me if you have any questions. Thank you, Michael (I am a Senior Loan Officer that specializes in Foreclosures).

Yeah, the only thing you want is the commission. Scavengers like you only care about your own pocketbook. What good is a neg-am loan but to get a person deeper in debt. I bet the rate is probably sky hi as well.

Most lenders have workout programs that will allow a delinquent borrower to keep their home. FOrget borrowing at this point. Th eonly lenders willing to refinance you with a foreclosure are scavengers who prey on the hardship of others. Yours included.

[midleman]

Now how the lease to buy back program works is you have to give ownership to the investor and they will refinance your home take out their fee plus all the other fees that have to do with your mortgage as far as closing cost. Than on top of that you are making payments for a home that is not really yours because it not be in your name. That is crazy it would be best to sell the property and get your money and go and purchase another home or refianance your home .

By the way, this is illegal in many states. The Better Business Bureau actively warns people against these types of programs because the debtor usually has no way of repurchasing the home and they retain no ownership interest in the home. These so called investors are theifs preying on the elderly or misinformed. Why not give some real advice or help them negotiate a payment plan with the mortgage company? This is the only legitimate option the borrower has to keep their home unless they have a legal defense. Even a chapter 7 bankruptcy wont help most folks since mortgage reaffirmations are rare.

[midleman]

Bad Advice

The Cons - Well.. I believe anything short of losing your home is a Pro . If I had to find some cons they would be as follows.. This is a Lease and Buy back program which means this company will contractually purchase the home from you for a 12 month period. You will continue to live in the home and pay the mortgage... At the end of the 12 months, the house will be sold back to you at the same price it was purchased for (plus any minor interest).. Cons would be if you don't make the payments ontime for that 12 month period, you home is gone... another con would be assuming a neg-am is written you will probably pay about $1000 more to buy back the home (which in the scheme of things isn't bad).. If the loan does not carry a Neg-am then the intereste rate will probably be somewhere between 10-13%... Please keep in mind that this program is a temporary one, 12 months.... It is just a stepping stone between being in foreclosure and being able to refinance into a normal program.. Establishing a 12 month ontime payment history will enable you to qualify for a sub prime refinance. Please feel free to submit any follow up comments. Thank you, Michael

This is bad advice. The original owner will never be able to obtain a new loan to buy the property back once a foreclosure has been recorded on their credit report. The "investor" knows this and will end up keeping the home. I was a sub-prime lender and am now an independent loss mitigation specialist. I negotiate resolutions to foreclosure. If a person is in foreclosure this is the only legitimate option available short of Chapter 13. Virtually all mortgage companies have workout programs to help borrowers keep their home. The lenders can be tough and have been known to make it hard on the borrower when negotiating but 3rd party negotiators usually have an easier time negotiating with lenders isnce they cannot be abused by the lender and they understand the process. I suggest seeking help from a legitimate mitigation service. Beware of scams and always check client references though.

[SinkingFast]

I think this is all very funny.

You A$$ume that everyone in Foreclosure wants to keep their house. And that's what you prey on. The desperation of people to keep their "home".

We don't!

We don't wanna be in Foreclosure, but we were unable to SELL our house.

There are many Foreclosure scenarios that do not involve the owner wanting to keep their home. But that's not your target audience is it??

Your target audience is desperate people who want to keep their home, who are grasping at straws.

Your proposal sounds reasonable enough. Buy the house back from you in a year.

Do you honestly think that the financial issues that would drive a person to do business with you will simply disappear in as little as a year??!!

I don't think so. And you already know so. And that's what you're counting on.

You're hoping to pick homes for a song, turn around and resell them and make profit.

That's Ferengi if I ever heard it. What Rule of Aquisition is that anyway??

[Bobby'sGirl]

In Star Trek Universe....

...probably Ferengi Rule of Acquisition Number 666.

[SinkingFast]

...probably Ferengi Rule of Acquisition Number 666.

ROFL!!

Now Now, Bobby's Girl,............... You know there are only 212 Ferengi Rules of Aquistion!!