Mortgage Grapevine

Stupid LO question of the day

"My client closed about 2 months ago and their property was damaged by Hurricane Sandy. Do they still need to make their mortgage payments?"

Yes, this came from an LO with an NMLS ID number.
by PA-MA Lender November 5, 2012 12:14 PM

Tell him to call the original appraiser on the loan and get a re-cert of value....

When he gets that and calls you back ask him for current paystubs and bank statements with large deposits sourced. If he gives you all that tell him the borrower is declined and they need to move out of their house....
by Donktard Borker November 5, 2012 12:24 PM

The best thing to tell the homeowner is to communicate with their lender the status of the situation and the condition of the house. If it is not habitable, the lender has a way of working with the situation. Open and honest communication is the key.

Tell them to document everything....

by Dr. Branker November 5, 2012 1:45 PM

Their homeowners insurance is the people to call also. Some have insurance that pays for displaced type living expenses and I might be wrong, but I think ours said something about paying a payment or two or somesuch nonsense.

I doubt they have flood insurance.
If not, shame on them.
by turdly November 5, 2012 6:31 PM


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