Skip to content
BOL Conferences
Thread Options
#1134182 - 02/23/09 05:46 PM Taking additional collateral on a modification?
Sanya Offline
New Poster
Joined: Feb 2004
Posts: 6
With home values declining significantly, we are debating about whether it is an acceptable practice to require additional collateral as a condition of doing a loan modification/workout?

Our bank has never engaged in sub-prime lending, and we also don't have any crazy ARMs out there that are readjusting; however, we are still faced with a few calls a day from consumers that simply can't afford to stay in their homes. It doesn't appear to be motivated by payment shock from ARMs that have readjusted - it just appears to be a combination of other economic factors.

I've reviewed the "Mod in a Box" and other resources that have been issued by the regulators, but I don't see anything on this particular idea.

Thoughts? What are other banks doing out there right now?

Return to Top
Lending Compliance
#1134204 - 02/23/09 06:01 PM Re: Taking additional collateral on a modification? Sanya
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
It would depend on State law whether or not you could require additional collateral.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top

Moderator:  Andy_Z