tag:blogger.com,1999:blog-8549883549808884582.post7075005939413959703..comments2023-11-03T06:39:28.481-04:00Comments on NJ HELOC Heaven: From HELOC To Foreclosure in Pequannock *See Update BelowNJHHhttp://www.blogger.com/profile/14960316007304106542noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8549883549808884582.post-88940708191903929252008-06-23T16:48:00.000-04:002008-06-23T16:48:00.000-04:00Since Fannie Mae now has possession it is safe to ...Since Fannie Mae now has possession it is safe to assume they guaranteed the mortgage. Citi probably didn't make out so bad. If the house was foreclosed they lose everything.<BR/><BR/>This is hypothetical but lets say Commerce Bank has $217k left on the loan. Citi approaches them to buy the debt to protect their loan. Since it costs 50k to foreclose a property, they can go to Commerce and say we'll take the loan off your hands for $170. <BR/><BR/>So now Citi is in for $213 plus costs of foreclosure. I'm not sure what it really costs in BC but it's basically attorney fees and sheriff fees. I've seen the estimate saying it could be as high as 60k per but I think in reality it's probably a bit lower. We're mainly talking 3-4 attorney court appearances and some boilerplate paperwork.<BR/><BR/>Citi's HELOC was probably not guaranteed, so I'm guessing that the Commerce Bank mortgage was. So when Citi took possession they got the Fannie Mae protection and have already been paid off and don't need to worry about dealing with an REO. Maybe they took a loss, maybe they made a profit, maybe they broke even?<BR/><BR/>I'm still learning more about that side of the process but that's as best as I can figure.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8549883549808884582.post-41521929658741929502008-06-22T22:04:00.000-04:002008-06-22T22:04:00.000-04:00Thanks!I wish I could find more and the searches w...Thanks!<BR/><BR/>I wish I could find more and the searches were easier. In the beginning I was posting examples sporadically - when I could find them. Now I try to have it be a Sunday feature (if it a good week I will do both days). <BR/><BR/>Its my favorite part - I think the article analysis during the week helps me put the stories and situation into perspective. <BR/><BR/>I will have to update the post with your findings - Thanks again!NJHHhttps://www.blogger.com/profile/14960316007304106542noreply@blogger.comtag:blogger.com,1999:blog-8549883549808884582.post-81877025767565203822008-06-22T15:27:00.000-04:002008-06-22T15:27:00.000-04:00I'm waiting to see if this turns into another susp...I'm waiting to see if this turns into another suspected scam :)<BR/><BR/>I really enjoy these posts from you. <BR/><BR/>Since the house has been foreclosed, Citibank would have been out it's HELOC. When a senior lien holder takes possession of a property, all junior liens get wiped out in NJ. <BR/><BR/>Looking at the foreclosure details, it seems that Citimortgage actually took possession of the property and did the foreclosing. To protect it's interest in the HELOC, Citi most likely purchased the primary lien from Commerce Bank. There were probably also back property taxes that Citi paid off. <BR/><BR/>Fannie Mae is actually listed as the property owner in the tax records.Anonymousnoreply@blogger.com