ForeclosuresMass - ForeclosuresMass Monthly - Legal Corner - Banks are willing to work with investors to find equitable solution (August 2005)

Bob Tenney, attorney at Cunningham Machanic in Natick, is on the frontline of the foreclosure process. Tenney and his firm review claims by lenders to review properties for foreclosure. If proper conditions are not met, they are also the folks who send out demand letters --the step that begins the foreclosure process for the homeowner. "We send the demand letter and give the homeowner time to reinstate their loans. If that doesn't happen we proceed with the foreclosure," says Tenney.

Of course Tenney doesn't like to be the bad guy in these cases. In fact, he says the ultimate goal of the bank is to help homeowners out of their foreclosure nightmares. If an independent investor turns out to be the solution to the homeowners' problem, that's wonderful. "Basically the bank wants the loan reinstated. We are not averse to a third party stepping in to purchase the property, as long as the loan is made performing," adds Tenney.

So, when ForeclosuresMass notifies its subscribers of a foreclosed property that already has a bank filing against it, there are really no barriers to the investors if they are interested in the property. However, there are a few legalities everyone should be aware of.

"If someone is interested in purchasing a foreclosed property that the bank is presently dealing with, they must first contact the homeowner and get his or her assent to speak to the bank about working with them," says Tenney. This is the first step an investor needs to take before contacting the bank. "Banks will very often work with a third party in order to help the distressed homeowner."

* Next 37 17 investors only!

Tenney sees ForeclosuresMass as a great resource for investors. The timely data ForeclosuresMass provides to investors enables them to review and collect the data on a property, communicate directly with the homeowner and offer them solutions. It is a win-win situation for all involved, since the investor is able to make some money, the bank's loan winds up paid off and the homeowner avoids foreclosure. Tenney says, "It is a lot less taxing on the homeowner when they can be helped to understand a bank's role in foreclosure doesn't always have to be negative. Most banks are willing to work with the homeowner in whatever scenario becomes the most appropriate. If a ForeclosuresMass subscriber can help banks accomplish that, there is an equitable solution for all. "

Robert F. Tenney, Esq. is a partner with the Law Firm of Cunningham, Machanic, Cetlin, Johnson & Harney, LLP in Natick, MA (www.cmlaw.net). He can be reached at (508) 651-7524 or rtenney@cmlaw.net.