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About the Author
Jonathan Katz started in the Loss Mitigation industry in early 2000's. He worked for the one of the largest loan servicers in the US in their loss mitigation/foreclosure department. Through a work flow of 600 cases a month and several years of experience he created an organization in 2005 dedicated to helping homeowners. Now he is taking the next step and putting out the information that even professionals will benefit from.
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I agree that Obama will be good for our economy, especially the real estate industry!
Swap babysitting with a neighbor or a friend who also has children. You will find that an extra child for a few hours won’t stress you out more than you already are, but when it is your turn and the friend/neighbor is watching you child, you will feel stress free for a bit! And it saves you money that you have spent on a babysitter or daycare!
glad to be part of your community
Tony, Thank you very much for being part of our site. Please feel free to participate in our posts and share your input.
Take care-
Jonathan Katz
One West Bank – Indy Mac Mortgage Service is the worst lender ever. The don’t give people a chance befor foreclosure. The will send your checks back just to add a $3000.00 self imposed forcloseure fee. The are liars and theives! Don’t trust them! Don’t finance anything with these people!
Mike,
I am sorry to hear about your situation. I’ll tell you that this is exactly why we are in business. This type of situation comes up all the time and it takes someone to be on top of the lender to get them to do what they are supposed to.
I wouldn’t have them service my mortgage either. Some though don’t have a choice as the loans are sold amongst large pools between the lenders. If we can help in any way please feel free to contact me.
Regards,
Jonathan Katz
Very interesting. But how can you figure out the net so that you know what can be your lowest offer? Any idea?
Barbara,
That is a great question. Well in most cases unless you have a preexisting relationship with the negotiator there is no way. Also, if you don’t have someone else who might be able to look at the analysis for you then you are actually going to be stuck on trying to establish what is a good deal to you/buyer and not really taking them into consideration. As we work mainly in the retail market processing short sales for homeowners/brokers/agents/investors/etc. we advise our clients to figure out what would make it worth their wild to follow through with the purchasing of the property. If the bank declines the offer then it may very well be the reason that they expect to get more from the sale. This is not to say that there are not many other factors why short sales get declined all the time. Each case is different and in my experience working for a lender myself I can tell you have 600 cases a month for almost half a decade I’ve seen over 30,000 cases and I’ll tell you that everyone is a learning experience. Good luck and if we can be of assistance please let me know.
Take care.
Jonathan Katz
Great law it’’s about time.. Is it just me or did anyone else noticed that those tv commercials (especially Parsa Law firm) ceased about a week before this law passed
Tony,
When I saw your post I just started laughing! I know what you mean. I saw those Parsa Law group’s commercials over and over again and finally they stopped! I said with this whole situation coming from a mile away.
Funny enough we started to do loan modifications again because we don’t charge up front for our short sales why wouldn’t we do loan modifications for free upfront too.
Going well so far I got my client a 3.95% rate yesterday on his mortgage down from 5.64!
Take care buddy,
Jonathan Katz | Account Manager | Absolute Consultant Group
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This article comes at a time when I have a $850K offer in negotiations with BofA and 1st lien is 1.8M with BofA. They will only pay National City $3 and National City wants $25. But we also have a $41K mechanics that needs to be paid and BofA will not give a dime. Understandable with such a big loss. Negotiating with the contract to take half and let my buyer contribute to mechanics lien. So…..I am blue in the face as BofA at this point said they will let it go to foreclosure unless mechanic’s lien is taken care of and National City will only take $3K. This is a great example of what the net proceeds would be for BofA in a short sale vs. foreclosure. ANY IDEAS….would it really make sense for this property to go to foreclosure for BofA?? Mechanic’s lien and attorney fees could be $100k for a buyer at auction.
We have well proven our marketing and efforts to find buyer. Property started at 2.5M a year ago and has been dropped over the months in increments to $1.05M as a short sale when we finally found the tipping point for buyers in this price range of $800’s. So far loss mitigator has hung up on me and attorney as we tried to justify approving a short sale vs. going to foreclosure i.e. We can get it done as long as buyer will pay mechanic’s lien and some to National City.
Stephanie,
There are two issues here.
#1 – The issue with the second mortgage. They are requesting 25k. BofA is not going to give that up. Depending on what side of BofA that you are dealing with they each still have their own rules as to the amount they are willing to pay out. In most cases neither will accept a pay out of that amount.
#2 – The mechanics lien. For this one it’s really tough. Imagine that you are making it their problem as right now it is not their problem. They foreclose specifically to get rid of liens like that so to convince them that they need to pay for them is really difficult; Impossible, no, Difficult, yes.
All in all I would not call it quits but you have a tough road ahead. You have to negotiate with the Mechanics Lien to go away and the toughest part is you are going to have to give them a reason to do it prior to being approved from the First Mortgage. As for the second you are going to have to try to convince them to come down and convince BofA to come up.
It sounds like the lender is giving your problems about dealing with this issue as a whole. I hate to say it but I guess that is why we are in business. We deal with these issues for most of our Real Estate Agents, Homeowners and even in many cases Attorneys and we always try to do the best we can to resolve them. Many have solutions but to say all do would not be true.
Take care and best of luck if you happen to make head way maybe you can come back and post your results!
Have a great weekend!
Regards,
Jonathan Katz | Account Manager | Absolute Consultant Group
This is a good start for information. From your experience Jon, who should I contact to get in touch with the bulk REO division for various banks?
Bulk Buyer,
REO, like any business, is all about who you know. We have been in the industry for quite a while so in our experience we have been in contact with many different Asset Managers, REO Departments and have dealt with some of the top agents in the industry. I would guess that is the best way to start. Make the rounds and try to get in contact with as many people as possible.
Our foot print in the industry has allowed us to make a large amount of contacts with the lenders and sometime it is important to be introduced to certain parties.
Best of luck.
Regards,
Jonathan Katz | Account Manager | Absolute Consultant Group
BofA has CONTINUALLY turned down my market cash offer and comes back with an unreasonable higher 30K BPO performed by an agent out of the area. Where can I get help for my short Sale seller?
Thank you for your reply,
Erika Kay
Real Estate Broker-Owner
Erika,
I would need to know more about your situation. It is hard to say from the outside what needs to be done. Maybe they need to order another BPO. Maybe they may need to order an appraisal. It all really depends on many different factors. It could have to go to management in which case it really pays to know someone. We process hundreds of these so we have seen just about everything under the sun but there is also always room for something new. I will shoot you an e-mail and we talk further in regards to this.
Take care.
Regards,
Jonathan Katz | Account Manager | Absolute Consultant Group