Im a real estate agent in california and have many clients who purchased in a high market…clients are wondering if they could reduce their loan amount to market value…is there any lenders actually doing this?
Im a real estate agent in california and have many clients who purchased in a high market…clients are wondering if they could reduce their loan amount to market value…is there any lenders actually doing this?
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December 14th, 2009 at 1:20 pm
Balance reductions are almost impossible unless your clients hire a law firm. An attorney, can bypass loss mitigation and go straight to the legal department of the lender. That said, even for law firms, balance reductions are far and few between right now especially in California. The money available for the mac brothers according to the Obama administration, homeowners must be at 115% ltv…almost no one qualifies for that…..
So the short answer, is everyone can…hardly no one will….Have your clients focus on the mitigation of loan term and / or interest rates………
December 14th, 2009 at 3:03 pm
There are some who are doing it here in the New York market. The banks would much rather receive less money than no money and then foreclose on a house that they probably won’t be able to sell.
That’s what some of the money given to the banks by Washington is for. Barring that, they should be able to refinance their mortgages at a lower rate.