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#2167852 - 03/13/18 01:19 PM Successor in Interest & Foreclosure
Questions Offline
Junior Member

Registered: 06/19/09
Posts: 39
If we are contacted by a Successor in Interest, does this communication automatically reset the clock for the 120 day foreclosure process?

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#2167884 - 03/13/18 02:21 PM Re: Successor in Interest & Foreclosure [Re: Questions]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 66625
Loc: Galveston, TX
You mean if they submit a loss mitigation application?
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2167909 - 03/13/18 03:21 PM Re: Successor in Interest & Foreclosure [Re: rlcarey]
Questions Offline
Junior Member

Registered: 06/19/09
Posts: 39
If they do not submit a loss mitigation application, does contact with the successor limit our ability to foreclose?

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#2167914 - 03/13/18 03:33 PM Re: Successor in Interest & Foreclosure [Re: Questions]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 66625
Loc: Galveston, TX
No - but are you suggesting that you should ignore the fact that there are new players in the game and likely they have just suffered a devastating loss. Makes for great headlines in the local paper: Grieving kids parent's house foreclosed by bank days after they pass away". Regulations are one thing - doing the right thing is another. Stalling foreclosure until giving them enough time to get things a little sorted out is the right thing to do, as long as they are responsive to your contact.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2167943 - 03/13/18 04:17 PM Re: Successor in Interest & Foreclosure [Re: rlcarey]
Questions Offline
Junior Member

Registered: 06/19/09
Posts: 39
I'm not suggesting that at all. We would never initiate foreclosure days after a parent passes away. But I do want a full understanding of what the bank's obligations are here. Situations will inevitably arise where the successor has made contact with us and clearly does not have the ability to keep the home. If the borrower was already 3 days delinquent, do I have to wait another 120 days before I can initiate foreclosure? Or can I proceed three days earlier if there is no hope of loss mitigation? Believe it or not, customers are much smarter than what the CFPB gives them credit for. We've had several situations where the borrower has tried to manipulate the foreclosure process. I could see this occurring in divorce situations more so than death situations. I'd like to be crystal clear as to what we are allowed to do.

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#2167961 - 03/13/18 04:57 PM Re: Successor in Interest & Foreclosure [Re: Questions]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 66625
Loc: Galveston, TX
It does not reset the 120 day clock.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2172805 - 04/10/18 02:25 PM Re: Successor in Interest & Foreclosure [Re: rlcarey]
cludlow Offline
New Poster

Registered: 03/12/09
Posts: 6
I am I correct to say that in the above scenario, if the potential SII is living in the house, you would have to offer them loss mitigation options prior to the 45th day of delinquency and that might delay the foreclosure timeline? Thanks.

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