Posted by 101livescan on 6/5/10 7:56am
Msg #339903

Loan Modifications

These have all but disappeared from the landscape in my neck of the woods. I'm also having the same properties that lenders started foreclosing on last year coming back on the auction radar screen. Seems that people were in the modification review process, and the borrowers are not qualifying, or their loans were modified and they've not been able to hang with the new program.

Anyone out there noticed the loan modification assignments are slowing down in your areas? I'm noticing that at the auction sales, lenders are setting retail prices on the properties and they are reverting to the beneficiary at auction, which means they'll be listed for sale with local REO brokers. The bank writes off what the loan amount was and what the property reverts for.

Have a cool day, going to be in the high 90s here.

Reply by Sylvia_FL on 6/5/10 8:32am
Msg #339908

I have done several loan mods the last couple of weeks. Borrowers are getting the docs and told to find a notary. (they have been Wells Fargo mods)

Reply by MistarellaFL on 6/5/10 8:41am
Msg #339910

They have dried up here, as well.
I was seeing about 3-6 a month for the last year or so.
I had one last week, and that was the first since the end of April.

And it's already 87 degrees here at 9:40 AM. 84% Humidity.
Yuck!

Reply by kathy/ca on 6/5/10 10:29am
Msg #339925

Is it the Mod Applications we are supposed to beware of and

not the Loan Mods themselves? I have done several Loan Mods over the years but not in a log time but before I accept any I want to be sure its the "applications" that could be a problem for us.

Reply by Lee/AR on 6/5/10 12:01pm
Msg #339930

Re: Is it the Mod Applications we are supposed to beware of and

Basically, if they want you to collect money (or get credit card approval, post-dated check) w/ no notarizations, no guarantees--that's a Loan Mod Application---watch out!
A Loan Mod actually 'modifies the loan'....it's a done deal.

Reply by kathy/ca on 6/5/10 12:19pm
Msg #339931

Thx Lee for the info, thats what I thought, wanted clarified n/m

Reply by MW/VA on 6/5/10 8:45am
Msg #339913

We never saw many loan mods appear in this area. I'd heard stories from people about the lenders that were deliberately delaying the process a year or more (claiming lost apps, etc.).
IMO I think the gov. has put more pressure on the lenders for the mods. Fortunately, the market here wasn't as hard hit as those of you in CA, AZ, or FL.

Reply by Lee/AR on 6/5/10 10:01am
Msg #339920

What I'm seeing is a lot more Reverse Mortgages--Seniors being hit hard by the tanking of investments. And many current-Lender-generated refis at lower interest rates to folks who were having no problem making the higher payment. These are not sub-prime borrowers.

Reply by Alz on 6/5/10 10:22am
Msg #339921

As someone mention, there are a few lenders

who are requiring the borrowers to obtain a notary.

There was one company that would send me 3 - 7 loan modifications a week, but later had payment issues. Now, I can't have that, can I?.....lol

It appears that another company is in the process of negotiating or has secured a contract with the lender, but the fee is low..imho

Reply by kathy/ca on 6/5/10 10:26am
Msg #339923

In the high 90's in Santa Barbara? Its only going to be in

the mid 70's here in San Clemente. Lucky you, I love hot weather!

Reply by kathy/ca on 6/5/10 10:27am
Msg #339924

Oops, this was supposed to be under OP. n/m

Reply by C. Rivera Chicago Notary Services on 6/5/10 9:44pm
Msg #339971

Loan Modifications in my area. If they are Citi, I'm seeing

these being sent to the homeowners directly more and more, along with the UPS envelope and label. I have had quite a few walk-ins over the last few months, and amazingly, no notarization required.

My sister just got her loan mod from Citi. The letter that accompanied the two sets of 3 page docs stated that she MAY need a notary, if the loan mod doc required it, but when I looked at the signature line, it didn't.

Maybe, because she was a very good customer (she only had 8 more years to pay off her existing mortgage, was always on time, but got her hours at work shorted, and thus her income plummeted) Citi didn't require the notarization??

Perhaps a reason why these are dropping off for us?