Two "F" words in Real Estate: Foreclosure / Forensic

Rhetoric will evolve and dissipate over time, every generation and each of its eras quips terms and phrases for fun and for attention; others surface just because of the market conditions – foreclosure, for example.

Foreclosures are in the news nearly every day and every newscast for that matter. Practically every person in America can name someone three-degrees-of-separation away in which Foreclosure is a real experience. Another “word” rising in popularity is REO (Real Estate Owned); a situation where the bank now owns the property and must sell on the market to recoup or minimize their losses — usually due to a Foreclosure.

Have you ever wonder how you might stop or slow down a Foreclosure on your property? Watch this video: How to Stop Foreclosures (or at least slow them down).

Forensic Loan Audits is another term gaining popularity, many companies claim that it helps speed up the Loan Modification process; it may help some but is it worth the added fee (i.e. $495). It's the author's view that this is more of an "attention grabber" in order to earn business. When I hear an attorney say the word “Forensic” it makes the hair on the back of my neck tingle (not in a good way). There is very little published on percentages of loans that are adjusted or relieved based on a Forensic Analysis. In the end, in almost all cases, the Bank has the last word as to a Modification, Adjustment or Forbearance Agreement.

Modifications require documentation submitted to the bank for their analysis and approval. The questions is, do you give the numbers to the bank for a decision on your own, without knowing what they are looking for; or, do you have someone help you draw documents and submit a stronger case for your hardship?

You are then left with a rather long question to answer:

Realizing that I can no longer make my payments to my mortgagor; do I sit still and let the bank Foreclose on me (with very steep penalties later), or do I seek a way to Modify my loan by approaching the bank by myself, with guidance from someone who knows what the banks look for or someone who will look at my papers and try to figure out if someone made a mistake on the initial documents (Forensic Audit)?

Good Luck on your journey! Just remember, in all the struggles and heartache of homes lost and lives changed . . . it's still just STUFF. Go hug your family and hang out with your friends. Life is good!

Rodney Kennedy
REALTOR/Auctioneer
Harper Mees & Associates

Email Rodney or call him at (925) 918-1147 for assistance with Livermore & Pleasanton real estate and any questions you may have in regards to loan modifications and real estate auctioning.