HECM

Originating: Shangri-la or Just Foreclosure? 

Historically the process and consequences of HECM foreclosure (and its cousins: short sale, short pay, trustee sale, etc.) have not been taught to reverse mortgage originators. As a result, many in our industry have given it a kind of “Shangri-la” twist. It is as if nothing negative comes of it. HUD pays off any balance due at termination and all is well. What could go wrong? This article will look at the harsh realities of HECM foreclosure some HECM originators have been discovering. HECM foreclosure is a process with which far too many are becoming familiar. The article is not