On the morning shows - abandon your home

[Restrain]

On one of the morning shows, on Friday, they had a "real estate expert" on. Letter was from a lady who had taken a "foreclosure halt" loan. Essentially, they renegotiated the loan at a 12-14% rate - fixed. Her credit was shot and she wanted to know what to do.

The expert said to check out what homes were being posted for foreclosure, pick out the best of the bunch in her price range, and call the owner to see if they want to do a short sale. If so, then buy the home as a short sale from the bank.

The implied answer was to go get another home and let her existing home go back to the bank, although she never said to let the existing home go back.

Just interesting what the "experts" are suggesting.

 

[Deleted member 77547]

a commission is a commission.

 

[Joyce Potts]

A foreclosure halt loan? Her credit was shot, she's facing foreclosure with the first home, yet she qualifies for another loan at 12-14%.

Sounds much like the 80/20 gimmick with new terms and spin.

What's wrong with this picture?

 

[Old Man]

That seems to be increasing in popularity. Here is a link to an article posted in June (AZ local news) repeating a WSJ article. http://www.azcentral.com/realestate/articles/0611biz-BuyAndBail-11.html
I have also read on other Forums where many realtors and agents post comments supporting this. What most are doing, is getting a signed rental agreement for the 1st property to qualify for the second. Then walk away from the 1st. Some lenders are catching on and FNMA has changed to require a minimum of 30% equity in the first. My opinion, it's a new type of fraud being encouraged by agents looking for another source for commissions.

 

[Blueprint]

Severed perception of reality

a commission is a commission.

Exactly. It is all perception, at all times.

 

[Karl]

That seems to be increasing in popularity. Here is a link to an article posted in June (AZ local news) repeating a WSJ article. http://www.azcentral.com/realestate/articles/0611biz-BuyAndBail-11.html
I have also read on other Forums where many realtors and agents post comments supporting this. What most are doing, is getting a signed rental agreement for the 1st property to qualify for the second. Then walk away from the 1st. Some lenders are catching on and FNMA has changed to require a minimum of 30% equity in the first. My opinion, it's a new type of fraud being encouraged by agents looking for another source for commissions.

So true!! Know of a X Mortgage Broker that now works in a bank & she'll tell you how to do this over lunch. RE Agents are also setting up "Short Sales" for their friends, & already have someone on the "Hook" to pay 40,000+/- more for the home, the day the short sale deal closes. They put the person in the home for 90 days "Rent Free" they put the monthly "Payment" in a account so the person will have some money to show FHA that they can afford the home. for 40,000+/- in 90 to 120 days I'd give someone "free Rent"

For those of you with some power that are reading this Forum WAKE UP Same B.S. just a different structure!!

 

[Terrel L. Shields]

What most are doing, is getting a signed rental agreement for the 1st property to qualify for the second. Then walk away from the 1st. Some lenders are catching on and FNMA has changed to require a minimum of 30% equity in the first. My opinion, it's a new type of fraud being encouraged by agents looking for another source for commissions.

Saw this a few weeks ago. Local jerk (jerk enough that he got FIRED from a government job he'd held 10 years - how can you do that?) Loads up loan on existing house, buys new dwelling and shop, finances about ½. Then lets the mortgage holder of the other house 'haver back'....slick. now a double jerk.

 

[The Warrior Monk]

A foreclosure halt loan? Her credit was shot, she's facing foreclosure with the first home, yet she qualifies for another loan at 12-14%.

Sounds much like the 80/20 gimmick with new terms and spin.

What's wrong with this picture?

You can always borrow money at the right price.

 

[toddmallard]

We're DOOMED. It will never stop. The more education the smarter the "sperm recepticles" get.

 

[murray stroupe]

What's Wrong With Picture?

You can always borrow money at the right price.

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Must have been quite a deal to pay 12-14%;
wonder if that's fixed rate?????????????????