Does anyone here work with mortgages and foreclosures?

[Arkitech]

I'm looking to sell my home within the next couple of months and I'm curious how does a lender determine what the payoff amount will be. Is there a reduction in interest when this amount is being calculated? Also does the formula apply to secondary or equity loans (my 2nd loan has higher interest than my first)?

Finally my other question is about foreclosed properties. Does the bank release to the public, information on it's defaulted loans? I would like to buy a home in pre-foreclosure or after foreclosure (hoping to downsize a bit due to the economy) and I'm hoping that I can save a substantial amount of money this way.

 

[Demon-Xanth]

The payoff amount is the principle left on the loan.

What you're looking for is a "short sale", they're listed like any other property, but it took me about 6 months between the time I submitted my offer and close due to the bank having to approve the sale, so be prepared to wait for a long time.

 

[mugs]

Put the details of your loan in here:
http://www.bretwhissel.net/cgi-bin/amortize

Your payoff amount would be the last column, plus a prorated portion of the interest column.

 

[Arkitech]

Originally posted by: Demon-Xanth
The payoff amount is the principle left on the loan.

What you're looking for is a "short sale", they're listed like any other property, but it took me about 6 months between the time I submitted my offer and close due to the bank having to approve the sale, so be prepared to wait for a long time.

Wow, so it took 6 months to close. When did you first make an offer? Was it this year or last?

In my county (Cook County - covers Chicago and surrounding suburbs) we're leading the nation in foreclosures at the moment. I wonder if banks will move a little faster in an effort to get rid of inventory.

 

[Arkitech]

Originally posted by: mugs
Put the details of your loan in here:
http://www.bretwhissel.net/cgi-bin/amortize

Your payoff amount would be the last column, plus a prorated portion of the interest column.

Thanks, this is just what I needed. I should be able to figure what to price my home with this info.

 

[Slew Foot]

If you're leading the nation in foreclosures, it's probably a better idea to rent than buy right now.

 

[Demon-Xanth]

Originally posted by: Arkitech

Originally posted by: Demon-Xanth
The payoff amount is the principle left on the loan.

What you're looking for is a "short sale", they're listed like any other property, but it took me about 6 months between the time I submitted my offer and close due to the bank having to approve the sale, so be prepared to wait for a long time.

Wow, so it took 6 months to close. When did you first make an offer? Was it this year or last?

In my county (Cook County - covers Chicago and surrounding suburbs) we're leading the nation in foreclosures at the moment. I wonder if banks will move a little faster in an effort to get rid of inventory.

October to February. The sale price was $195k while the defaulted loan amount was $248k. Was refinanced in 2005.

 

[mugs]

Originally posted by: Arkitech

Originally posted by: mugs
Put the details of your loan in here:
http://www.bretwhissel.net/cgi-bin/amortize

Your payoff amount would be the last column, plus a prorated portion of the interest column.

Thanks, this is just what I needed. I should be able to figure what to price my home with this info.

I take it you're doing FSBO to save money? The amount you owe really had no bearing on the value of your house...

Edit: Oh, are you talking about the house that you'll be buying?

 

[Beattie]

Originally posted by: Slew Foot
If you're leading the nation in foreclosures, it's probably a better idea to rent than buy right now.

Isn't that backwards? If there are a lot of foreclosures and you have the money to actually be able to afford something, you could get a steal.

Also, other people that were foreclosed on will be renting which may drive up rental costs.

 

[Slew Foot]

Originally posted by: Beattie

Originally posted by: Slew Foot
If you're leading the nation in foreclosures, it's probably a better idea to rent than buy right now.

Isn't that backwards? If there are a lot of foreclosures and you have the money to actually be able to afford something, you could get a steal.

Also, other people that were foreclosed on will be renting which may drive up rental costs.

Lots of foreclosures now= more in the future, the trend hasnt even started decelerating yet.