Bailout Loan for People in or Pending Foreclosure

Hello everyone, some of you might find this of use... There is a Foreclosure Bailout Program in all 50 states that is available to people who are in foreclosure.. The parameters of the loan are as follows: The max LTV is 85% which means you need to have at least 15% equity in the home.. Stated income is ok and Your credit score dosn't matter... The interest rate you will get will be suitable for your income... If money problems still exist the lender will write you a Neg-am loan to bring down your payment to something you can manage. The lender will actually sub lease the property to you for a 12 month period which will give you "On time" payments so you can then refinance back to a stardard loan. Just thought some of you would want to know this program exists.. .. You can email me if you have any questions. Thank you, Michael (I am a Senior Loan Officer that specializes in Foreclosures).

Is it possible for you to articulate the pros and cons of this particular type of loan? The information you can share openly/freely is better.

-Todd

Well, I can tell you one con of Neg-am (Negative Amortization) is that your payment does not typically cover your monthly interest, so the principal balance of the loan actually increases over time.

Also, these loans typically have adjustable interest rates and the principal is not amoritzed meaning none of your payment gets applied to the principal balance of the loan.

And be wary of any of these sub-lease programs, what that means is that you NO LONGER own the house, you become a renter.

If you have a decent mortgage already, a chapter 13 BK usually makes more financial sense than getting into one of these types of loans. The reason being is that cash flow (why you are considering BK etc) is generally a short-term, temporary problem for most people, so why get into a long-term bad deal to address an otherwise short-term problem.

These types of loans are typically used by real estate investors in rapidly appreciating real estate markets as it minimizes the investors monthly cash outlay while they attempt to flip the property. So, again, whether these loans make sense also depends on your local real estate market.

My question was rhetorical in the sense that I wanted the poster to articulate all the con's associated with this particular type of loan personally. You know............disclose the fine print. :D

please send me info to khaase4@comcast.net. we live in Indiana

The Cons - Well.. I believe anything short of losing your home is a Pro . If I had to find some cons they would be as follows.. This is a Lease and Buy back program which means this company will contractually purchase the home from you for a 12 month period. You will continue to live in the home and pay the mortgage... At the end of the 12 months, the house will be sold back to you at the same price it was purchased for (plus any minor interest).. Cons would be if you don't make the payments ontime for that 12 month period, you home is gone... another con would be assuming a neg-am is written you will probably pay about $1000 more to buy back the home (which in the scheme of things isn't bad).. If the loan does not carry a Neg-am then the intereste rate will probably be somewhere between 10-13%... Please keep in mind that this program is a temporary one, 12 months.... It is just a stepping stone between being in foreclosure and being able to refinance into a normal program.. Establishing a 12 month ontime payment history will enable you to qualify for a sub prime refinance. Please feel free to submit any follow up comments. Thank you, Michael

how do i apply

For everyone to know, the lease and buy back program should always be the last resort. That program is basically an investor who purchase your property and gets all of the benefits of the equity in your property. usually they refinance the home and take equity out of the property meaning the house have to have enough equity in it for the lease to buy back program. Now if you have equity in your home it is best to refinance your home. If you are in foreclosure their are no credit requirement you can go up to 90 perecent loan to value we donot look at your credit.

Pros to Refiance while in foreclosure or bankrupcy: you get to keep you home and enjoy the equity in your home. you can pay off all of your debt which will leave you debt free except for your mortgage will be your only monthly payment

The con: higher interest rate.

If you have any other mortgage questions or if you are facing foreclosure please contact me for advice

Thanks
Latoya

Now how the lease to buy back program works is you have to give ownership to the investor and they will refinance your home take out their fee plus all the other fees that have to do with your mortgage as far as closing cost. Than on top of that you are making payments for a home that is not really yours because it not be in your name. That is crazy it would be best to sell the property and get your money and go and purchase another home or refianance your home .

Hello everyone, some of you might find this of use... There is a Foreclosure Bailout Program in all 50 states that is available to people who are in foreclosure.. The parameters of the loan are as follows: The max LTV is 85% which means you need to have at least 15% equity in the home.. Stated income is ok and Your credit score dosn't matter... The interest rate you will get will be suitable for your income... If money problems still exist the lender will write you a Neg-am loan to bring down your payment to something you can manage. The lender will actually sub lease the property to you for a 12 month period which will give you "On time" payments so you can then refinance back to a stardard loan. Just thought some of you would want to know this program exists.. .. You can email me if you have any questions. Thank you, Michael (I am a Senior Loan Officer that specializes in Foreclosures).

Yeah, the only thing you want is the commission. Scavengers like you only care about your own pocketbook. What good is a neg-am loan but to get a person deeper in debt. I bet the rate is probably sky hi as well.

Most lenders have workout programs that will allow a delinquent borrower to keep their home. FOrget borrowing at this point. Th eonly lenders willing to refinance you with a foreclosure are scavengers who prey on the hardship of others. Yours included.

Now how the lease to buy back program works is you have to give ownership to the investor and they will refinance your home take out their fee plus all the other fees that have to do with your mortgage as far as closing cost. Than on top of that you are making payments for a home that is not really yours because it not be in your name. That is crazy it would be best to sell the property and get your money and go and purchase another home or refianance your home .

By the way, this is illegal in many states. The Better Business Bureau actively warns people against these types of programs because the debtor usually has no way of repurchasing the home and they retain no ownership interest in the home. These so called investors are theifs preying on the elderly or misinformed. Why not give some real advice or help them negotiate a payment plan with the mortgage company? This is the only legitimate option the borrower has to keep their home unless they have a legal defense. Even a chapter 7 bankruptcy wont help most folks since mortgage reaffirmations are rare.

The Cons - Well.. I believe anything short of losing your home is a Pro . If I had to find some cons they would be as follows.. This is a Lease and Buy back program which means this company will contractually purchase the home from you for a 12 month period. You will continue to live in the home and pay the mortgage... At the end of the 12 months, the house will be sold back to you at the same price it was purchased for (plus any minor interest).. Cons would be if you don't make the payments ontime for that 12 month period, you home is gone... another con would be assuming a neg-am is written you will probably pay about $1000 more to buy back the home (which in the scheme of things isn't bad).. If the loan does not carry a Neg-am then the intereste rate will probably be somewhere between 10-13%... Please keep in mind that this program is a temporary one, 12 months.... It is just a stepping stone between being in foreclosure and being able to refinance into a normal program.. Establishing a 12 month ontime payment history will enable you to qualify for a sub prime refinance. Please feel free to submit any follow up comments. Thank you, Michael


This is bad advice. The original owner will never be able to obtain a new loan to buy the property back once a foreclosure has been recorded on their credit report. The "investor" knows this and will end up keeping the home. I was a sub-prime lender and am now an independent loss mitigation specialist. I negotiate resolutions to foreclosure. If a person is in foreclosure this is the only legitimate option available short of Chapter 13. Virtually all mortgage companies have workout programs to help borrowers keep their home. The lenders can be tough and have been known to make it hard on the borrower when negotiating but 3rd party negotiators usually have an easier time negotiating with lenders isnce they cannot be abused by the lender and they understand the process. I suggest seeking help from a legitimate mitigation service. Beware of scams and always check client references though.

I think this is all very funny.

You A$$ume that everyone in Foreclosure wants to keep their house. And that's what you prey on. The desperation of people to keep their "home".

We don't!

We don't wanna be in Foreclosure, but we were unable to SELL our house.

There are many Foreclosure scenarios that do not involve the owner wanting to keep their home. But that's not your target audience is it??

Your target audience is desperate people who want to keep their home, who are grasping at straws.

Your proposal sounds reasonable enough. Buy the house back from you in a year.

Do you honestly think that the financial issues that would drive a person to do business with you will simply disappear in as little as a year??!!

I don't think so. And you already know so. And that's what you're counting on.

You're hoping to pick homes for a song, turn around and resell them and make profit.

That's Ferengi if I ever heard it. What Rule of Aquisition is that anyway??

...probably Ferengi Rule of Acquisition Number 666.

...probably Ferengi Rule of Acquisition Number 666.

ROFL!!

Now Now, Bobby's Girl,............... You know there are only 212 Ferengi Rules of Aquistion!! :D

Michael, I am new to the site and joined just to find out who to contact for the lease buy back option. I have clients in need of this program. Thank you.
Sherry

The Cons - Well.. I believe anything short of losing your home is a Pro . If I had to find some cons they would be as follows.. This is a Lease and Buy back program which means this company will contractually purchase the home from you for a 12 month period. You will continue to live in the home and pay the mortgage... At the end of the 12 months, the house will be sold back to you at the same price it was purchased for (plus any minor interest).. Cons would be if you don't make the payments ontime for that 12 month period, you home is gone... another con would be assuming a neg-am is written you will probably pay about $1000 more to buy back the home (which in the scheme of things isn't bad).. If the loan does not carry a Neg-am then the intereste rate will probably be somewhere between 10-13%... Please keep in mind that this program is a temporary one, 12 months.... It is just a stepping stone between being in foreclosure and being able to refinance into a normal program.. Establishing a 12 month ontime payment history will enable you to qualify for a sub prime refinance. Please feel free to submit any follow up comments. Thank you, Michael

You wrote that you were looking for a lease buy back program but that is not my type of program. In fact, in my opinion, most of the purchase lease back programs are scams. If your home is in foreclosure it is best to negotiate a workout through mitigation. I say this because it actually works to save your home and an experienced negotiator can work out some favorable terms. If that is what you are looking for I wish you the best but if you want to explore your options send me an email. I wish you well.

Thank you. I am aware of that. I have my own foreclosure mediation company. At times this is the only thing left besides a chapter 13 so we give the homeowner the options.

Midleman, Forgive me if I misunderstood. Are you saying that it would impossible to either refi or buy new properties once a foreclosure is recorded on a credit report?

Thanks.

For most borrowers with a foreclosure on their record credit scores can be reduced drastically which could affect your ability to find a good loan. In my experience the only lenders who will make you a loan are finance companies who charge high rates and fees or scavenger lenders who will do the same.

There may be special circumstances which may be explained away but you still have to overcome the credit score issue. Time heals all wounds and it is possible to re-establish your credit so never give up on your dream of ever owning a home again after a foreclosure. Of course the best way to clean up your credit is to always pay your bills on time. For most lenders they will want to see a minimum of 2 years established pay history and all bad debts cleared up or paid. ALthough the paid bad debt may still show on your credit it can add points to your score.

Before you apply for a loan after a bankruptcy or foreclosure, obtain your credit reports and scores to determine the extent of the damage, then concentrate on paying off any bad debt (you may be able to negotiate a discount with the lender and ask them to remove the item from your credit record. Be sure and get it in writing) You may also dispute certain items on your credit report which may result in their removal. FOr information on the Fair Credit Reporting Act go to Google and type in FCRA and do your homework.

Good luck.

For most borrowers with a foreclosure on their record credit scores can be reduced drastically which could affect your ability to find a good loan. In my experience the only lenders who will make you a loan are finance companies who charge high rates and fees or scavenger lenders who will do the same.

There may be special circumstances which may be explained away but you still have to overcome the credit score issue. Time heals all wounds and it is possible to re-establish your credit so never give up on your dream of ever owning a home again after a foreclosure. Of course the best way to clean up your credit is to always pay your bills on time. For most lenders they will want to see a minimum of 2 years established pay history and all bad debts cleared up or paid. ALthough the paid bad debt may still show on your credit it can add points to your score.

Before you apply for a loan after a bankruptcy or foreclosure, obtain your credit reports and scores to determine the extent of the damage, then concentrate on paying off any bad debt (you may be able to negotiate a discount with the lender and ask them to remove the item from your credit record. Be sure and get it in writing) You may also dispute certain items on your credit report which may result in their removal. FOr information on the Fair Credit Reporting Act go to Google and type in FCRA and do your homework.

Good luck.

Nice thought, but,........... Most of us here are here because we're broke. If we had the money to pay, we would have and we wouldn't be in a position to need the protection of BK.

So if we're broke now and cannot pay, where do you propose we come up with the money to pay off the discharged debts?? All the negotiated offers I've received from Creditors are for 75% to 80% of what we currently owe. AND the Creditors want their money in a lump sum payment. If we had that kind of $$$ just laying around, we wouldn't even have considered BK as an option to resolve our financial issues.

You may be broke but not poor. Poor is a state of mind, broke is a condition that can be fixed. I've had money and I've been broke. Never poor. I have come a long way in a short time and am now able to pay my bills and even have a little in the bank. But it hasnt always been that way. 5 years ago I was opening a can of beans with a screwdriver while crying my eyes out. All the while wondering what my future was going to be like. How could I ever get out of that situation. But I will tell you how, I got pissed off at my situation and busted my butt to make a living. I went to work for a finance company and hated every minute of it. But God had other plans for me and he inspired me to do what I know best, teach people how to work the system and overcome their financial problems. It is only through knowledge and sheer determination that you will ever get out of the rut you are in. I know because I've been there done that! Now I know that no matter where you are or where you've been you can get here from there. Now I have a financial ministry and a weekly radio program called Financial Emergency and I get calls and letters from people every day that confirm that I am on to something. My motto is "Fear Not..." I finally have peace in my life. I hope you can get there too.

You may be broke but not poor. Poor is a state of mind, broke is a condition that can be fixed.

I think you mean broken.

Honey,...... I've been poor off and on several times in my life. Grew up dirt poor. Then Dad died and things got even worse. We woulda been thrilled to have the can of beans to go at with a screw driver.

Thanksgiving was rolling up and we were sure we weren't going to have ANY food to eat much less Turkey and Trimmings. When there came a knock at the door and a Church group appeared with a Holiday Basket of food. Manna from Heaven!

We've had spells of prosperity. Times when we had way more than we knew what to do with. We enjoyed ourselves. Did things. Created memories that would last a lifetime. But rich or poor, we've always shared what we have with others.

Right now we don't have money to pay our CC bills, and the house payment, and live month to month. We agonized and decided we had to file BK. We tromped around from attny to attny until we found the one we settled on. I think we were lead to him for a reason. For over 2 months now he's put off filing our BK. The attny keeps saying wait for this and wait for that. It's tough, but we've stuck by his advice.

Waiting has worked for us too. We've waited and,............

Instead of Foreclosing, our house is gonna sell. We close Mon, June 19th. I hope. We have a contract with the buyers. I did a lot of "working the phone" to bring that together. They're approved by their bank. And they've done their inspections. But I'm to the point I'll believe it when the ink on the signatures is dried and the papers are filed at the Court House.

We got moved out of the old barn we could not afford to heat last winter. That we shared with mice and insects and spiders. And we're living where everything works and it's nice and bright and better insulated. If we had filed, we couldn't have moved until the BK was discharged.

Even tho our rent is a bit lower, we'll have a water and sewer bill to off set about half of the difference. And, we've had a new benefits year start up the first of June. All the insurances, except one increased so it looks like income to expenses, we'll be about the same as before.

So, right now I'm poor. I'm a bit weathered and battered. But I am not broken. I'm fighting each and every step of the way.

Hello everyone, some of you might find this of use... There is a Foreclosure Bailout Program in all 50 states that is available to people who are in foreclosure.. The parameters of the loan are as follows: The max LTV is 85% which means you need to have at least 15% equity in the home.. Stated income is ok and Your credit score dosn't matter... The interest rate you will get will be suitable for your income... If money problems still exist the lender will write you a Neg-am loan to bring down your payment to something you can manage. The lender will actually sub lease the property to you for a 12 month period which will give you "On time" payments so you can then refinance back to a stardard loan. Just thought some of you would want to know this program exists.. .. You can email me if you have any questions. Thank you, Michael (I am a Senior Loan Officer that specializes in Foreclosures).


Good evening can you please provide me with the lenders information so that I can contact them or if you get the opportunity can you please contact me at my e-mail address or please give me a call at (240) 210-4963.

Regards,

Debra Ritchie

I think you mean broken.

Honey,...... I've been poor off and on several times in my life. Grew up dirt poor. Then Dad died and things got even worse. We woulda been thrilled to have the can of beans to go at with a screw driver.

Thanksgiving was rolling up and we were sure we weren't going to have ANY food to eat much less Turkey and Trimmings. When there came a knock at the door and a Church group appeared with a Holiday Basket of food. Manna from Heaven!

We've had spells of prosperity. Times when we had way more than we knew what to do with. We enjoyed ourselves. Did things. Created memories that would last a lifetime. But rich or poor, we've always shared what we have with others.

Right now we don't have money to pay our CC bills, and the house payment, and live month to month. We agonized and decided we had to file BK. We tromped around from attny to attny until we found the one we settled on. I think we were lead to him for a reason. For over 2 months now he's put off filing our BK. The attny keeps saying wait for this and wait for that. It's tough, but we've stuck by his advice.

Waiting has worked for us too. We've waited and,............

Instead of Foreclosing, our house is gonna sell. We close Mon, June 19th. I hope. We have a contract with the buyers. I did a lot of "working the phone" to bring that together. They're approved by their bank. And they've done their inspections. But I'm to the point I'll believe it when the ink on the signatures is dried and the papers are filed at the Court House.

We got moved out of the old barn we could not afford to heat last winter. That we shared with mice and insects and spiders. And we're living where everything works and it's nice and bright and better insulated. If we had filed, we couldn't have moved until the BK was discharged.

Even tho our rent is a bit lower, we'll have a water and sewer bill to off set about half of the difference. And, we've had a new benefits year start up the first of June. All the insurances, except one increased so it looks like income to expenses, we'll be about the same as before.

So, right now I'm poor. I'm a bit weathered and battered. But I am not broken. I'm fighting each and every step of the way.

can appreciate your situation but I still believe anyone with a will can overcome their situation. Although BK may be necessary for some it is my opinion that everyone has the ability to come back and do better than they had. For most people they are only a few hundred dollars upside down in their budget. With some minor adjustments in their spending and a fresh start with their creditors that number can be reduced. From there it may only be a matter of raising an extra $50-100 a week to get ahead of it. I know people who have regular garage sales to raise cash or have a booth in a flee market. Find a problem and come up with a solution. People will pay you to fix their problems for them or make things easier. As I said before, poor is a state of mind, broke is a condition that can be cured.

By the way, although your creditors may offer you 75-80% for a settlement, my experience is that they will consider much less. I regularly negotiate settlements of 50% or better, sometimes in 3 equal payments, not in one lump sum. It helps to have an experienced negotiator.

"The poor shall always be with us". But the faces change. Many "poor" get fed up with being poor and rise to the occasion. History is full of success stories. "A man's (or woman) gift will make a way for them..." "Without a vision the poeple perish." Find your dream. If you think on things that arent as though they are, they will come to pass.

I wish you well.