Foreclosures of Sub-Prime Real Estate Mortgages

The fallout in the sub-prime real estate mortgage market has resulted in the risk to millions of homeowners of loosing their homes. Putting aside who is to blame and why it happened, homeowners facing foreclosure may be able to save their homes. If you are facing that predicament and have a jumbo mortgage, Camden Cottage Associates may be able to assist you in your efforts to keep your home.

The basic premise is that the lender really does not want to own your home. Once the lender “owns” the home, its carrying costs can be significant. Carrying costs include insurance, taxes, utilities and fuel oil (especially heat if the home is located in the northeast), legal fees and other administrative costs. The lender also has to worry about vandalism of an empty home. Finally, the lender is earning nothing while the home sits.

For the homeowner, the most appropriate contact at the lender is someone in the workout department. Lenders may call it something different, such as the special assets department or asset recovery.

The workout of a loan requires the lender to make significant sacrifices. If a workout is to succeed, the borrower will also have to make significant sacrifices. However, it takes a borrower with knowledge and experience of having dealt with these types of situations to know how to negotiate the restructuring of a loan. Most borrowers lack this experience.

Camden Cottage Associates has had almost two decades of experience renegotiating defaulted loans with workout departments. Because of the costs involved, Camden Cottage Associates will only work with borrowers having sub-prime mortgages of at least $1 million.