Who Knows About Foreclosures?

Status
Not open for further replies.
Generally speaking, bankruptcy is usually involved, prior or around a home foreclosure.

Just as a heads-up if a home is in foreclosure and the person files bankruptcy, the mortage company will file a Motion For Relief (MFR) from the bankruptcy. Once the MFR is filed and a hearing date set, the agent for the mortage company will attempt to negotiate terms with the attorney for the debtor. Once negotiated a Consent Order (CO) is drawn up, sent around for signatures, and filed with the court. If the debtor's attorney doesn't negotiate and Order Granting Relief (OGR) is filed with the court. The CO will have terms and the debtor is expected to adhere to those terms, otherwise a Notice of Default (NoD) is filed with the court. Dependent on whether there are 'drop dead' terms in the CO, the foreclosure may happen.

As a general rule, mortgage companies strive to avoid foreclosure since they don't get paid so there is a significant amount of time involved to contact the debtor and market to them.

My point with that little synopsis is that there are repeated filings with the court for bankruptcy (prior to foreclosure) and for foreclosure. Generally the states are divided into districts (ex. NC has 3) that publish records. Most courts now publish their calendar online via their website. Also, most states provide some mechanism for court record access, hence how attorneys know about your speeding ticket the next day to send you an advertisement in the mail (I wrote an application that pulls that data from NC's mainframe for a law firm and mailing service). The digital access usually has everything from race, age, sex to mailing address. Unfortunately there is no email field...

Dependent on the type of marketing you were doing, if it's offline you could really use that information to your advantage in targetting people. Online, I'm not sure if this post helps much aside from a brief process overview. If you need more info, I'm available.
 


Yes to all of this. The key is determining just how long they are from foreclosure. Someone who is 20-90 days perfect candidate.

Subprime loan is huge. Many people were put in these loans at low intruductory rates and now they are adjucting and these people have no way to refinance or to pay the payment. They don't realize that till they try for 3 months with every bank under the sun and you have dumb ass loan officers giving them terrible advice.

If somone is in a loan, it adjusted, they are late and there is no equity. Now we have a perfect candidate to monetize.

tornado said:
Number one would be high DTI. See what their income is versus their debt. Also, the interest rate on their mortgage. Most individuals likely to foreclose already have a subprime loan (ARM traditionally) that they are paying super high interest rates on.
Click to expand...
 
Yes they do not want to foreclose especially when there is no equity and they will have to come out of pocket to foreclose. Many borrowers are in 90-125% loans. They are not just going to foreclose on all of these. I guess no one here know where I'm going with this.

revbones said:
As a general rule, mortgage companies strive to avoid foreclosure since they don't get paid so there is a significant amount of time involved to contact the debtor and market to them.

Dependent on the type of marketing you were doing, if it's offline you could really use that information to your advantage in targetting people. Online, I'm not sure if this post helps much aside from a brief process overview. If you need more info, I'm available.
Click to expand...
 
How you going to expedite this process fast enough on a national level?

There are home distress buyers in every city of the country. Locally based, know the market and able to provide cash in a day or two. How do you compete with them in a way online that actually makes sense to the consumer and actually makes you money.

Especially people with any equity, they can still sell out and get some of their equity out, as opposed to being foreclosed on. While banks don't want to foreclose on people theywill eventually foreclose. It is inevitable. The only way to avoid it is to pay them.

It makes no sense to get into an arrangement with someone who had a house go into foreclosure as they are a bad risk. You need to work on getting the property and flipping it. But flipping property and houses is so overdone right now and the real estate market in most parts of the country in such horrendous shape that there is likely not much money to be made there.
 
So if a guy is at 6% on a $500,000 mortgage and it jumps to 9% and he now is late and cant make it. Why is this guy a bad risk? Because all the mortgage brokers and banks put his ass in a 2/28 loan 100% stated income. He made his payments for fucken 2 years ok. Now they are double and he cant refinance because there are no more loan programs like that. Is he a bad risk or a victim of the market and gambling? Why foreclose when you can mitigate?
 
Why is this guy a bad risk? Because all the mortgage brokers and banks put his ass in a 2/28 loan 100% stated income.
Click to expand...

Actually, he put his own ass into that loan, thinking he deserved that house and legalized lying is the way to get it. Used to be you actually had to have some money to buy a house. What a concept. Not that many LO's would have counseled him out of it (no commission in that).

What we're seeing is, in addition to disappearing programs, less and less lenders even willing to consider taking leads self-rated subprime, even those who can ethically boost credit scores in less than a week, which can make a major loan program qualification shift. I've seen 50-90 point moves in 3 days.

But, by then, the consumer has had his head up his butt for 89 days and ltv limitations will kill his potential.

Get 'em early, get 'em real about what they've gotten themselves into. That's a service in itself.
 
Boy, you guys need to get a dose of reality, most people going into foreclosure are never going to fill those damn forms. They are in denial, they are hoping something is going to come up, file for bankrupcy go ahead with their joint lawsuit because their mortage company is going to sue them. They are going to make payments after every 3 months cause then the mortage company(HSBC) doesnt want another home to go into foreclosure or a quick sale. :). They are also going to try to start a business (unfortunately this is where the ebook scam artists get them).
By the time you are talking about foreclosing you are down to about one year of the house owner trying back and forth to make things work.
So dont think about it as a 90 day or 120 day thing, find out what people in certain companies are complaining about i.e what correct ad talked about in his how to make 20 k a month post and twist that shit. You can mine those emails for more than 20 k a month. I am coming for you Correctad
Hope this helps :)
 
Regardless of who did what. There is a national crisis of foreclosures and this aint shit yet. Its gonna be like a tsunami of defaults.

The key is to be part of the solution and market that.
 
All good points. So. Share an idea. Not like there's any shortage of opportunity here. 100 lenders have gone out of business since late 2006. If you want to track who and why in an entertaining way:

ml-implode.com

BYA's right about the size of it. So, what's a solution? I've saved several FC'ers. But, my legit investors are walking away from the shitstorm and all that's left is hard money. The fast credit repair works...for some. But there's an ocean of people no one is touching. The poor will get help. The rich don't need it. The middle is fucked. Again.

I'm listening...
 
110% LTV on overpriced homes sold to credit unworthy buyers.....a good percentage of impending forclosures have this footprint. See if you can work your magic on these.
 
most houses that are in foreclosure are in it because stupid owners paid more than what the house is truly worth...

therefore finding a true foreclosure property that can be profitable is finding a needle in a haystack not to mention you are competing against a million other wannabe investors
 
Its not about profiting from the foreclosure but profiting from their circumstances. You think bank are just going to forclose on every mother fucken property? Fuck no, its not in theor best interest. It is when the borrower has 100k equity that the bank will bury the borrowers but not when they have 10 or 0% equity. Why would a bank want to take back a property with no equity and spend $50,000 to in fees and costs. It doesnt make sense, right? Right! I guess no one has any inclination on whats up, so this is great :) Perfect. Everyone have a great day.
 
umm.. isnt their "circumstance" the foreclosure?

Blastyourass said:
Its not about profiting from the foreclosure but profiting from their circumstances. You think bank are just going to forclose on every mother fucken property? Fuck no, its not in theor best interest. It is when the borrower has 100k equity that the bank will bury the borrowers but not when they have 10 or 0% equity. Why would a bank want to take back a property with no equity and spend $50,000 to in fees and costs. It doesnt make sense, right? Right! I guess no one has any inclination on whats up, so this is great :) Perfect. Everyone have a great day.
Click to expand...
 
I'll admit BYA: I'm intrigued. I've bought and sold real estate even though I'm young, and I worked for 4 years in a real estate company, so I thought I'd get where you were going with this, but so far I'm not catching on. If it's something you'd be willing to share in private, I'm all ears. If you want to stop just hinting at it in this thread then come right out and say it...

As far as banks foreclosing on a bunch of loans, there are multiple reasons why banks don't do this. A) As BYA pointed out, they don't want houses with no equity that will sit on the (oversaturated) housing market because of their high price. On the other hand, they aren't just going to let their 250K loan go away completely, so if they have to "lose" $10K in legal fees to foreclose on the house so that they can sell if for $200K and only lose $190K as opposed to the full price of the loan, they are going to do so.
B) Banks are federally regulated, and are only ALLOWED to have a certain percentage of non-performing loans by the banking regulators. Thus, if there is a huge influx of NPL's, they CAN'T just foreclose on them or they'll get hit with some fines by the regulators at the end of the year for being over the allotted % of NPLs that they are allowed to have.

This is a complex industry, and the huge # of NPL's and foreclosures coming up are going to change the way the industry works. I'm not sure what track BYA is on here in his effort to push us into thinking up what monetization strategy he has formulated. It will be interesting to know if he's willing to share.
 
Sup niccas. Okay I dabbled in them a couple years ago and came across something online in like 2003? Its a compilation of all sorts of foreclosure info, not an e book just a compilation of posts that explain some of the basics of foreclosures, and the overall goals if you get into them. like bya said, money in misery. its in a gmail account if you guys want to dl it, wickedfire104 , pw is wickedfire105. let me know if this helps anyone, peace and love and all that shit.
Rich
 
The mortgage market has changed in the last few years...hell, it has changed in the last few months. 4 years ago I was able to refi many of the pre-foreclosure clients that I came in contact with. It is a different story now..alot of the subprime lenders are gone or moved to prime lending.

People are already "milking" this situation. They are offering "lease purchase" or "owner carry" properties with $3k to $5k down payment. These poor buyers are paying the $5 down payment..signing the lease purchase contract and "skipping" out in 2 months when they cant pay the "mortgage payment".

The owner then turns around and puts it back on the market and takes another poor souls 5k and rinces and repeats. There secret is to go in contract with those that they know CAN'T afford the monthly payment.

Capitalism...YES...could I sleep at night..NO!
 
Its all basically in the homework you do and how fast you can catch them in the pre-foreclosure process. You find out the appraised value, when they were sent their notice of default on their mortgage (public info)

Its an early bird catches the worm kind of deal, you have to be 1st to find out and act. I knew a guy who used to do them who had actually helped alot of people who otherwise would probably be 6 feet under, he used to pay for their 1st and 2nd months rent in their new place if there was enough money on the deal.

One thing you can do with foreclosures, once you get one in your hands, is flip them to a re-habber, or, you can short sale the mortgage which takes anywhere around 3 - 5 months to achieve, and you have to have EVERYTHING in order. i.e. 1st mortgage 50k, second mortgage 25k, appraised value 85k. no equity right? offer to buy second for .05-.25 cents on the dollar, wait for approval, boom, created equity. might have to do a double closing in some circumstances, but this should help get somethin cooking, how to tie this in??
 
Status
Not open for further replies.
Top Bottom