One of my Clients, whos home is worth less than what is owed, received a call from Roseville Mortgage. They offered to buy the mortgage from the current lender for 90 percent of the market value. They charge several hundred dollars up front and say that they can do this in six months. They claim that they will then be the mortgage holder and will not take your home. This sounds like a new twist on the concurrent close fraud that has been going on with short sales. Anyone heard of these people?
You need to be a member of REO Pro Network to add comments!
Replies
1) The numbers don't work at 90% of fair market value for any investor to purchase a note....especially if they are facing the expense of foreclosing themselves....they too could be upside down on the property. 40% would be more common and is good business.
2) I am assuming your comment about charging hundreds of dollars is to the current homeowner? This never happens, the defaulting borrower is never aware of the behind the scenes trading or purchasing of their mortgage until it is done and is never charged a fee to accommodate the transaction. Collection agencies don’t even pull that crap.
3) They will be the new mortgage holder and NOT take their home? Sign me up….a few hundred bucks???? I’ll never pay my mortgage again if they’re not going to take my home.
4) 6 months to complete the transaction?? Well lets think about this….Thats time enough to be foreclosed on and living in a rented apartment for a couple of months barely scraping by and not willing to pursue a claim to get their money back, especially if the homeowner is past due in their mortgage payments to get the phone call from these yahoos to begin with.
Now a good question is where did they get the info of default? Was this a property that was listed in the MLS as a “Short Sale”? This sounds like the typical “Ambulance Chaser”. I would love to see a contract or written communication from this company….most likely they accept debit or credit cards over the phone…..hmmmm, I believe after 6 months you can’t dispute a card charge either.
Advise you clients strongly against this…..I don’t think even our new “wanna be” socialistic government would be that kind as to do this deal, and please let us know as things progress.