OT: I made bad choices, everyone pitty me.

[NotCranky]

Thanks PowayDude,
Just to make sure, a loan mod on any note that doesn’t go to zero(partial balance reduction) has no recorded items..or does it? This is a frequent topic here. There are a lot of people here who would like all the added info on this topic you could provide.

[SD Realtor]

PowayDude that would be very helpful. I was not aware that balance reductions are recorded. I have yet to ever see one recorded but would be very interested to see that.

[SD Realtor]

PowayDude that would be very helpful. I was not aware that balance reductions are recorded. I have yet to ever see one recorded but would be very interested to see that.

[SD Realtor]

PowayDude that would be very helpful. I was not aware that balance reductions are recorded. I have yet to ever see one recorded but would be very interested to see that.

[SD Realtor]

PowayDude that would be very helpful. I was not aware that balance reductions are recorded. I have yet to ever see one recorded but would be very interested to see that.

[SD Realtor]

PowayDude that would be very helpful. I was not aware that balance reductions are recorded. I have yet to ever see one recorded but would be very interested to see that.

[cabal]

[quote=PowayDude]
I am familiar with a company that does balance reductions. I can tell you that deeds of reconveyance are recorded for all paid off/forgiven liens. Also, many times the amount of the balance reduction is determined by current appraisals and the new balance basically leaves the borrower with a minimal equity position.

[/quote]

For a principal reduction, my guess is the modification is recorded as a “Modified Agreement”. Another example of this kind of recording is if the limits of an existing heloc are changed. You should only see Reconveyance if the entire balance is satisfied either through forgiveness or sale. My question is will the homeowner get stuck with a 1099 similar to a short sale.

Powaydude – It is interesting that the amount of reduction is based on current appraisal/comps, rather than what the homeowner can afford. This would help explain why many modifications continue to redefault. Your comment of leaving the homeowner with a minimal equity position need clarification as it implies only equity loss and no need for balance reduction.

[cabal]

[quote=PowayDude]
I am familiar with a company that does balance reductions. I can tell you that deeds of reconveyance are recorded for all paid off/forgiven liens. Also, many times the amount of the balance reduction is determined by current appraisals and the new balance basically leaves the borrower with a minimal equity position.

[/quote]

For a principal reduction, my guess is the modification is recorded as a “Modified Agreement”. Another example of this kind of recording is if the limits of an existing heloc are changed. You should only see Reconveyance if the entire balance is satisfied either through forgiveness or sale. My question is will the homeowner get stuck with a 1099 similar to a short sale.

Powaydude – It is interesting that the amount of reduction is based on current appraisal/comps, rather than what the homeowner can afford. This would help explain why many modifications continue to redefault. Your comment of leaving the homeowner with a minimal equity position need clarification as it implies only equity loss and no need for balance reduction.

[cabal]

[quote=PowayDude]
I am familiar with a company that does balance reductions. I can tell you that deeds of reconveyance are recorded for all paid off/forgiven liens. Also, many times the amount of the balance reduction is determined by current appraisals and the new balance basically leaves the borrower with a minimal equity position.

[/quote]

For a principal reduction, my guess is the modification is recorded as a “Modified Agreement”. Another example of this kind of recording is if the limits of an existing heloc are changed. You should only see Reconveyance if the entire balance is satisfied either through forgiveness or sale. My question is will the homeowner get stuck with a 1099 similar to a short sale.

Powaydude – It is interesting that the amount of reduction is based on current appraisal/comps, rather than what the homeowner can afford. This would help explain why many modifications continue to redefault. Your comment of leaving the homeowner with a minimal equity position need clarification as it implies only equity loss and no need for balance reduction.

[cabal]

[quote=PowayDude]
I am familiar with a company that does balance reductions. I can tell you that deeds of reconveyance are recorded for all paid off/forgiven liens. Also, many times the amount of the balance reduction is determined by current appraisals and the new balance basically leaves the borrower with a minimal equity position.

[/quote]

For a principal reduction, my guess is the modification is recorded as a “Modified Agreement”. Another example of this kind of recording is if the limits of an existing heloc are changed. You should only see Reconveyance if the entire balance is satisfied either through forgiveness or sale. My question is will the homeowner get stuck with a 1099 similar to a short sale.

Powaydude – It is interesting that the amount of reduction is based on current appraisal/comps, rather than what the homeowner can afford. This would help explain why many modifications continue to redefault. Your comment of leaving the homeowner with a minimal equity position need clarification as it implies only equity loss and no need for balance reduction.

[cabal]

[quote=PowayDude]
I am familiar with a company that does balance reductions. I can tell you that deeds of reconveyance are recorded for all paid off/forgiven liens. Also, many times the amount of the balance reduction is determined by current appraisals and the new balance basically leaves the borrower with a minimal equity position.

[/quote]

For a principal reduction, my guess is the modification is recorded as a “Modified Agreement”. Another example of this kind of recording is if the limits of an existing heloc are changed. You should only see Reconveyance if the entire balance is satisfied either through forgiveness or sale. My question is will the homeowner get stuck with a 1099 similar to a short sale.

Powaydude – It is interesting that the amount of reduction is based on current appraisal/comps, rather than what the homeowner can afford. This would help explain why many modifications continue to redefault. Your comment of leaving the homeowner with a minimal equity position need clarification as it implies only equity loss and no need for balance reduction.

[NotCranky]

Adam, Congrats on the merchandizing success so far. Makes me wonder if this activity causes some of your concern about loan mods being a “material fact”. Are you worried that somehow one will cause some sort of hit to you or perhaps cause problems somewhere else in the business, an escrow on a regular sale or something? I am just trying to understand how a market participant is supposed to be hurt by it, other than the fact that mods may affect inventory stream? As you have said, that matters a lot to you now.

You or one of your partners must be working closely with a title company and/or you are pouring over stuff at the county recorder’s office. Wouldn’t these things expose what is happening with recordings related to documentation of loan mods?

[NotCranky]

Adam, Congrats on the merchandizing success so far. Makes me wonder if this activity causes some of your concern about loan mods being a “material fact”. Are you worried that somehow one will cause some sort of hit to you or perhaps cause problems somewhere else in the business, an escrow on a regular sale or something? I am just trying to understand how a market participant is supposed to be hurt by it, other than the fact that mods may affect inventory stream? As you have said, that matters a lot to you now.

You or one of your partners must be working closely with a title company and/or you are pouring over stuff at the county recorder’s office. Wouldn’t these things expose what is happening with recordings related to documentation of loan mods?

[NotCranky]

Adam, Congrats on the merchandizing success so far. Makes me wonder if this activity causes some of your concern about loan mods being a “material fact”. Are you worried that somehow one will cause some sort of hit to you or perhaps cause problems somewhere else in the business, an escrow on a regular sale or something? I am just trying to understand how a market participant is supposed to be hurt by it, other than the fact that mods may affect inventory stream? As you have said, that matters a lot to you now.

You or one of your partners must be working closely with a title company and/or you are pouring over stuff at the county recorder’s office. Wouldn’t these things expose what is happening with recordings related to documentation of loan mods?

[NotCranky]

Adam, Congrats on the merchandizing success so far. Makes me wonder if this activity causes some of your concern about loan mods being a “material fact”. Are you worried that somehow one will cause some sort of hit to you or perhaps cause problems somewhere else in the business, an escrow on a regular sale or something? I am just trying to understand how a market participant is supposed to be hurt by it, other than the fact that mods may affect inventory stream? As you have said, that matters a lot to you now.

You or one of your partners must be working closely with a title company and/or you are pouring over stuff at the county recorder’s office. Wouldn’t these things expose what is happening with recordings related to documentation of loan mods?

[Author]

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