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Posted by Michael on August 18, 2005 at 09:20:42:
In Reply to: Re: Foreclosure Bailout Loan Guidelines posted by Jim V on August 04, 2005 at 14:30:07:
The reason this program has a 76% success rating is because there is a silient 2nd written, which is then forgiven upon transfer back... This constitutes a "Gift of Equity" at 15% when then constitutes the "Down Payment".. This is why the program works so well...
: Michael,
: Thanks for clarifying the issue, I do have one more question. About a year ago, a friend of mine was looking at participating in a similar program in a lender capacity. At that time, owners were only able to complete their buy-back roughly 35% of the time. Are your percentages any different, if so, why would they be?
: IMHO, the best option for most homeowners in foreclosure will be a workout plan with their existing lender. The Loan To Value percentage isn't a restriction, but it will require some amount of money to put "down" on the workout plan, and require the homeowner to have a continuing source of income sufficient to make the future payments. Using an outside company to facilitate a workout would be the number two choice, because it's going to cost something for the facilitator's efforts.
: I don't know that I'd put your plan as a number three choice because I really don't like the concept of transferring title, but I'll agree it's a possible solution for someone who's loan is greater than the 70-75% LTV sub-prime lender rquirements, or someone who's lender absolutely refuses any workout option.
