Most probably you have never heard of the Kondaur Capital Corp. I know I never did until I read an article about them recently. This is a company based in California. They buy non-performing mortgages from other companies. Non-performing mortgages are those where the people are no longer making their monthly payment on time and their mortgage company has started to foreclose.
What is different about Kondaur Capital? They are in business to make money. They only want to buy those mortgages where it is likely that the people can resume making a regular monthly payment on time or where they can help the person understand that they just cannot afford their home and they would be better off to sell it.
The challenge with most mortgage companies today is that they still do not know how to analyze a person’s financial situation to determine if a loan modification will enable them to save their home from foreclosure. In the past most mortgage companies just looked at how much the person was behind on their monthly payments and what late fees and additional interest has accumulated. They added these up and figured out how much they had to increase the person’s monthly payment over a specified period of time so that the shortage could be recovered. After the shortage was recovered the monthly payment would drop back to what it had been. Some companies still operate this way. Most have switched. Now they look what the person’s gross monthly income is. They figure out what the monthly payment would have to be if it were 31 to 35% of that monthly income. They agree to reduce the monthly payment to that amount for a certain specified period of time.
How does Kondaur Capital differ? They do an extensive review before they buy a mortgage. They get a current estimate of the value of the property. They then look at the balance of the mortgage and the monthly payment. They also take into account the person’s income. Then they go further. They look at the person’s other bills to see how much they have to pay monthly. Next they look at their track record to see how the person has made their monthly payments in the past. Have they normally paid their bills on time?
This review gives them a good idea of whether or not they can help the person? It also helps them determine their chances of making money if they buy the mortgage. If they decide that this mortgage fits their model, they offer to buy it from the current mortgage company for a specified price.
If the mortgage company sells the mortgage to them, they then contact the person and discuss the mortgage with them. They may offer to modify the mortgage and reduce their monthly payment. At times when they do this, they also agree to lower the amount of the mortgage to a more realistic amount based on what the current value of the home is. In certain instances the person may be in over their heads. There is no way that the payment can be reduced to a level they person can afford to make consistently on a monthly basis. In these situations Kondaur Capital educates them on this and they help them prepare to sell the home. Kondaur Capital does not want to take money from the person now if within a short period of time the person finds out that they can no longer continue to make the payment and is forced to sell their home.
As you can see, Kondaur Capital works with each person whose mortgage they buy. They endeavor to come up with a solution which is satisfactory for both parties. They also make sure to treat each person with dignity.
If Kondaur Capital has purchased your mortgage, does that mean that you should rely solely on what they tell you? By no means. I still recommend that you get outside representation. Why? Simply because you want someone representing you who has your best interests at heart.
I also recommend that you find out as much as you can about the steps you can take to save your home from foreclosure. You might want to check out the information in my EBook. You can find out more about it by clicking Stop Foreclosure.
Much Success,
Mark Elkins
September 29th, 2009 at 3:44 pm
I want to say – thank you for this!
October 22nd, 2009 at 6:02 pm
Well my experience was very different with Kondaur. They bought our mortgage from a companythat had failed to rectify issues with lost/misapplied monthly payments. Kondaur did their homework alright. They determined that there was a good bit of equity in the property,bought the mortgage and then promptly attempted to foreclose on the property. Although they were informed that there were missing payments and numerous requests were made for an accounting of the funds paid on the debt, all were denied for numerous reason including their excuse that they couldn’t read the copies, it was too far in the past, etc. An attorney had to be hired at the homeowner’s expense, the state attorney general’s office also got involved and finally, after many months and a counter suit, Kondaur relented and agreed to work with the homeowner and remove the exhorbitant fees that had been added to the loan. They insisted the mortgagee sign and notorize an agreement and then demanded and overnight wire transfer of all back payments that they had refused to accept. Immediately after the agreement was delivered to Kondaur, they sold the loan to a new company, although they never sent along the agreement and payment information to the new mortgage company. Kondur fraudulantly attempted to defraud the mortgagee and the company they sold the loan to. Kondaur should not be trusted- ever. Money is all they cae about.
December 16th, 2009 at 8:32 am
Just FYI
Order to Cease and Desist to Kondaur Capital Corporation Becomes Final
http://dbf.georgia.gov/00/press/detail/0,2668,43414745_129984420_140928316,00.html
January 19th, 2010 at 8:11 pm
I have to agree with the comment. Kondaur is all about money. They even did not call us for a payment. I have tried several times to talk to them for modification. Sent all documents to them but did not call back.
July 8th, 2010 at 12:16 pm
They called my client and tried to get their property for a lowball offer.
If you deal with them, hire an attorney.
A
December 13th, 2010 at 12:14 pm
Interesting article and helpful! – I hope my comments are not spam
January 5th, 2011 at 11:21 am
I agree. Kondaur is not to be trusted. My husband and I missed one payment and they tried to foreclose on us.
January 23rd, 2011 at 2:57 pm
Kondaur Capital is the most dishonest company and will lie to get what they want which is your house. They are all about the money and care nothing about trying to keep the homeowner in their home. I had a representative show up at my house trying to give me cash to move out of my house and signing a deed in lieu of foreclosure. When I told him to draw up the paperwork and I would take it to my attorney things changed quickly. He also told me at that time that if I could find someone to buy my house for 100k, he would sell it to them but he would not help me try to save my home. They have no humanity towards anyone going through this tough economy. Just yesterday, I received a 1099 from them for the loss on my house after foreclosure. Still trying to screw me!!!!
February 4th, 2011 at 2:21 pm
I work at Kondaur Capital Corporation and have been there for close to three years. We do not like to issue loan modifications to any of the assets that Kondaur Capital obtains from the pools of distressed mortgage that we buy.
We like to run our proposed agents ragged by obtaining BPO’s for us and promising them the asset when we obtain the BPO from them.
Also, the only way Jon Daurio passed law school is by soft kissing with his torts professor.
Please contact me directly if you should have any questions: Steve.guzman@kondaur.com
June 15th, 2011 at 7:43 pm
These people bought my mortgage dirt cheap I’m sure. Started calling and making suggestions to short sale, etc. Said they had 4 investors interested in buying my house and letting me live in it with a rent to own option. I’m lucky to have a family member who works for a real estate attorney. She is in the process of speaking to them (which did not make the rep very happy) to get an explanation of what Kondaur wants to do with my home. When I asked for my loan number the guy didn’t want to give it to me and kept arguing as to why I needed it and what does my sister need to discuss. Had to force it out of them to get a fax number. I tried to talk about modification, refinance, etc with no options except to short sell or do the title in lieu of deed thing. I know I owe a substantial amount on my mortgage but these people sure as heck didn’t pay that and are pushing me to sell. also keep telling me a forclosure is coming soon. Well, I’m sure they don’t want that because they won’t make any money off it. Why can’t people try to help you instead of shove you out of a home you’ve lived in and loved for 22 years. Its depressing
August 8th, 2011 at 6:45 pm
Kondaur is out to get the house. These guys took my home after CitiFinancial sold it to them, and did nothing but harrass me to pay off the ENTIRE balance or they would do the trustees sale. In three months they had my home, and never tried to negotiate with me, even after I had set up a deal with Citi. They need to change their name to Vulture Capital.
September 4th, 2011 at 7:37 pm
You do have options and if the foreclosure hasn’t happened yet you still have time to fight. If the mortgage has indeed been sold, do really know who owns it? Can they prove it?