[quote=sdrealtor]…A couple years ago a client of mine who had done a major kitchen remodel (high end restaurant quality) and home expansion for a couple hundred thousand lost his job and was un/underemployed for over a year while his wife was back in school retraining for a new career in a new industry also. They stopped paying and were in default for over a year. According to the trustee sale default amount they were about $100K behind. About a week before the trustee sale, someone from the bank knocked on his door with a principal reduction deal and loan mod… [/quote]
If this “story” is actually true, then it just bolsters my assertion that lenders are doing it to themselves.
Why should the rest of us have to pay for these people’s remodel work (one way or another)? And moreover, why should we feel sorry for them when one of the parties in this scam was “voluntarily retraining” (for no pay?) after their $200K of remodel work was done and they had bills to pay?? Having a $200K HELOC/2nd TD or newly cashed-out refi is NOT the time one’s life to choose to be to “back in school,” ESP full-time.
There is no excuse for lenders allowing property owners to fall $100K behind in payments, interest and late charges. They have a remedy. A lender who allows themselves to be screwed in this way is not mitigating their damages and then “cries wolf” when their losses are unsustainable.
Do you know if this particular lender rec’d bailout funds from the Federal govm’t, sdr? If so, have they paid any of these funds back??
