Q: I've came across a seller whose house is in foreclosure. He provided me with letters from the substitute trustee which indicate the amount necessary to pay off the loan. I contacted the trustee to ask what it would take to reinstate the loan by bringing the payments current. The trustee says the lender , Homecomings Financial, cannot provide her the new values until Feb 5. The property goes to auction on Feb 22.


Should I try to contact Homecomings Financial directly? Would their loan mitigation department be interested in working out a way to bring the loan into good standing? I'm having a lot of trouble getting through to the trustee, they don't seem to be interested in anything other than paying off

the loan, as opposed to reinstating it.


ANSWER


Wayne

, I never deal with the substitute trustee. I always go directly to the bank.


Before you contact the bank and waste time, you need to do a few things.


1. Have her sign the deed over to you. Why? I've done deals in the past where I felt the seller would give me the deed when I needed it later down the line. Guess what, I negotiated a deal, got the short, brought in a seller and when it came time to close, the seller had given the deed to another

person and they got my short sale.


So get the docs signed. You will need to send in an authorization to release to the bank and loss mit department. You will contact the loss mit department and ask where you need to fax an authorization to release information form so you can discuss a short sale or forebarance.