When a property securing a mortgage is considered “distressed,” a lender may want to adjust the value of the property on its books to reflect the lower market value typical for such properties. In some cases, if the mortgage payments have been chronically late (e.g., 3 or more late mortgage payments or nearing foreclosure), the mortgage is considered “seriously” delinquent.
The distressed property is considered to be in a delinquent status when the corresponding mortgage loan has late mortgage payments. For example, the foreclosure property is transferred from the -homeowner to another entity, such as a lender, servicer, or insurer, and then becomes REO. Specifically, a distressed property is considered to be in a foreclosure status when the property securing a mortgage loan has been through foreclosure resulting in the real estate being owned by an entity such as the lender. In either of these scenarios, the lender may have an interest in determining the value of the property.Ī property is considered distressed when the property is in a foreclosure status or in a delinquent status.
If the mortgage is in default and the lender has foreclosed on the mortgaged property and taken possession of the property (referred to as real estate owned or RED), the lender may want to sell the property as quickly as possible. Since the value of the property securing the mortgage is often maximized by keeping the borrower in place, the lender may want to assist the borrower. When a borrower is late in making mortgage payments or the mortgage is in default, an entity with an interest in the mortgage, such as a lender, may act to protect its investment. More particularly, the invention relates to systems and methods for determining value adjustments to properties securing mortgage loans that are delinquent or have been subject to a foreclosure. The present invention generally relates to financial systems and to systems and methods for processing financial information. The content of each of the above-referenced applications is expressly incorporated herein by reference in its entirety. 8,612,358), which is a continuation of U.S.
16, 2013, which is a continuation of U.S. This application is a continuation of U.S.
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