Sellers, who are looking to make considerable profits, may address many options with the homeowners. In reinstatement of loan, the lender is payed everything that is owned in one lump sum to include missed payments, any late fees associated with these payments, foreclosure fees, legal fees and the principal owed during the delinquency. A cure may involve the seller curing or deeding it to the investor "subject to" the exisiting loans, who will cure.
There is a risk to the homeowner that the lender may accelerate the loan because of the due-on-sale, and the homeowner no longer owns the property and has no recourse of the investor doesn't pay the loans. In a repayment loan, there is a written agreement between the lender and the seller. These plans require higher payments than the regular monthly mortgage amount for a period of time until the loan is brought up-to-date. In loan modiification, one or more terms of a mortgage are changed.
Modifications can be considered to reduce the interest rate of the mortgage, change the mortgage product (from an adjustable rate to a fixed rate, for example), extend the term of the mortgage or capitalize delinquent payments (add delinquent payments to the mortgage balance-only available in extreme hardship situations). Modifications are NOT easily granted and there must be strong, justifiable reasons for the request.
William Bronchick, an expert real estate advisor, provides coaching to real estate investors on all foreclosure options. In his coaching classes, William Bronchick explains about different types of options, like reinstatement of loan, repayment loan, loan modiification, forbearance agreement, special forbearance, deed-in-lieu, cash sale, short sale, refinance, and do nothing options.
William Bronchick explains that in forbearance agreement, the lender will allow the homeowner a period of time (3-6 months typically) of either low payments or no payments at all. Unless the loan term is extended (which happens rarely), the later payments generally will have to be higher than the original monthly mortgage payments until the loan is up-to-date. William Bronchick’s coaching provides all the tips needed to have a long and properous business in real estate investing.