Quote from Tradermd1 on August 24, 2024, 10:00 pmHow does an investor go about recuperating funds already spent on a foreclosure process if the borrower finally "wakes up" and indicates willingness to make his/her payments current. Is the lender obliged to do a loan modification? Does the lender have to halt the foreclosure process?
How does an investor go about recuperating funds already spent on a foreclosure process if the borrower finally "wakes up" and indicates willingness to make his/her payments current. Is the lender obliged to do a loan modification? Does the lender have to halt the foreclosure process?
Quote from Bill on August 26, 2024, 10:33 amA lender doesn't have to do a Loan Modification with a borrower, even though I believe it's the right thing to do. A lender has to accept a full payoff or a full reinstatement from a borrower. Reinstating a loan means the borrower brings the loan current by paying all past due loan payments (principal & interest) and late fees, along with all the lender's reimbursable costs & fees. Once the loan is reinstated, the borrower resumes their monthly loan payments again just as before.
Legal foreclosure costs & fees are either reimbursable or non-reimbursable, your attorney should be able to let you know which costs & fees are reimbursable, and it should be stated on the attorney's invoice. Once the invoice is paid, you want to get those invoices with the reimbursable costs & fees over to your loan servicer so they can add them to the loan account. These are also known as lender corporate advances.
A lender doesn't have to do a Loan Modification with a borrower, even though I believe it's the right thing to do. A lender has to accept a full payoff or a full reinstatement from a borrower. Reinstating a loan means the borrower brings the loan current by paying all past due loan payments (principal & interest) and late fees, along with all the lender's reimbursable costs & fees. Once the loan is reinstated, the borrower resumes their monthly loan payments again just as before.
Legal foreclosure costs & fees are either reimbursable or non-reimbursable, your attorney should be able to let you know which costs & fees are reimbursable, and it should be stated on the attorney's invoice. Once the invoice is paid, you want to get those invoices with the reimbursable costs & fees over to your loan servicer so they can add them to the loan account. These are also known as lender corporate advances.