anyone dealt w/Huntington Mtg. in OH? - Posted by rm

Real Estate Investing
1

Posted by JT-IN on June 29, 2003 at 22:20:34:

Tim:

I think you talked yourself all the way through this one, but went right on by the reason why you can’t vest a position or claim against the property. Lis Pendens… Once the foreclosure is filed, unless you can actually get it dismissed and buy outright, then this will keep you from having the claim to negotiate in the BK… as a secured creditor. Of course you could now be a new creditor who has NO claim either in the BK or the Foreclosure, but this is not well advised.

I think you really answered this and sometimes the prudent decision is to say… Humpty Dumpty can’t be puit back together again… I think that this might be appropriate here.

JT-IN

2

anyone dealt w/Huntington Mtg. in OH? - Posted by rm

Posted by rm on June 28, 2003 at 10:37:25:

I’m used to dealing with the bigger lenders on short sales.

When I called this place, it sounded like it was an unusually small group…

Everyone was friendly and helpful, until I spoke to Dee.

I asked if they’d entertain a short sale on this particular property and she asks, “Well, what are you bringing me?”

As if I was going to negotiate the offer over the phone.

'Twas very strange.

Anyway, I’m working with the owners and will submit the package on Monday.

Any tips from those who have worked on a short with them?

Thanks.

3

Here is who you need to talk to… - Posted by JT-IN

Posted by JT-IN on June 28, 2003 at 21:49:55:

rm:

I have dealt with Huntington Bank on several occasions, all unsuccessfully. This doesn’t mean that they won’t play, becuase they will, but the deals that I had to propose to them just didn’t quite fit in terms of Huntington’s motivation for a successful outcome.

Anyway, you spoke to Dee Baker, who is in Loss/Mit… but try this gal… name is Sharon Thayer, at 800-323-4695 the Fax is: 614-480-1063

They are all business, and will only consider something because it makes sense… Financially. Idle comments about the property going to sale, and the Bank losing out usually turn them off cold. Show them some way that the Bank can save money, time or drop more funds to the bottom line with your proposal than their current course of action, and they will consider action on a good idea.

All too often we read on this site about folks making proposals that shouldn’t be made, b/c they make NO financial sense… so don’t find yourself in that situation, as it ruins any credibility that you may otherwise build with a Lender. Nothing wrong with starting lower than where your top exists, just make an offer than can be seriously considered.

Just the way that I view things…

JT-IN

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Re: anyone dealt w/Huntington Mtg. in OH? - Posted by Shawn J. Dostie

Posted by Shawn J. Dostie on June 28, 2003 at 20:34:54:

I haven’t done a short sale with them, but I have dealt with them before. They are a regional bank with branches in several states. However, the mortgage company is located in Columbus. Perhaps she was just friendly… Out in the midwest, we still believe in that. When you asked her about a short sale, she probably just asked you what you had in mind out of reflex. Hope it works out for you.

Good Luck,
Shawn(OH)

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Follow-up - Posted by rm

Posted by rm on June 29, 2003 at 07:56:59:

Thank you very much for this info.

This is the case where the owners were the suckers who bought a newly-built home that had been sitting on the market for 1.5-2 years.

What’s interesting about this home is that the assessor then decided that the SEV on this home should be 110k. In reality, it ought to be about 75k.

Between the increased taxes and the added escrow “catch-up” payments, their financial ship has sunk.

The sellers have spoken to the assessor, who’s basically said, “Too bad. See you next April… and don’t expect a refund.” Funny thing is, the bank never stepped in to preserve their financial interest.

They’ve tried FSBO, but everyone has run when they’ve seen the taxes.

Right now, there’s zero equity- they owe about what it’s worth.

So, I’ll be proposing a slightly different sales price, based on the total payment a buyer would be expected to pay, since we can’t assume the taxes will be re-adjusted. Heck, I might even build in a profit for myself.

For good measure, I suppose the sellers may file a BK before the sherriff’s sale, just to make things interesting. (Not a bluff- they’re planning to do so, regardless of the outcome on their home.)

One other thing I was wondering if you might know- about how long, on average, does a Chapter 7 add to the delay on foreclosure proceedings? I was figuring about 90-120 days.

Thanks again for your help.

6

Ch 7 delay on foreclosure… - Posted by JT-IN

Posted by JT-IN on June 29, 2003 at 09:20:40:

rm:

The time delay a Ch 7 creates in a foreclosure case depends greatly on a number of factors…

  1. if there is any equity in the property, above an beyond the secured creditors who hold mtg’s…

In your case where there is no surplus equity, the Trustee is usuall eager to abandon the asset as this simply causes the Trustee additional aggrivation with no chance of any remuneration.

  1. How eager the secured creditors are in petitioning the BK for a relief from the BK stay.

This part truely surprises me repeatedly. I see creditors who have a claim on an asset in a BK that will wait and wait… almost as if they don’t know they can be proactive, as opposed to sitting there like a bump on the proverbial BK log… Anyway, if a Creditor is to petition for relief from the stay of collection action, on a house that is over leveraged, the time frame is usually 90 to 120 days. For those creditors who sit on their hands, waiting for Xmas… sometimes Xmas comes before the Trustee abandons the asset, which takes 6 months or more. Thsi time frame is driven more by the Trustee’s work load, as opposed to any other factor, which means… when they around tuit…

  1. Whether another Creditor in the case objects to a relief of stay to the secured creditors… Usually this doesn’t happen, but if it does it will delay the action for relief from stay, as it will require a hearing which takes more time, etc. etc… But it does happen occasionally, usually as a bargaining ploy by another creditor, and sometimes successfully. This may really have nothing to do wiht the house, but just a way to lobby for a different or better deal… Not seen that much, but it happens too.

Just the way that I view things…

JT-IN

7

Any benefit to becoming a creditor? - Posted by Tim_Cleveland

Posted by Tim_Cleveland on June 29, 2003 at 18:18:42:

JT:

Sorry, but maybe I am stuck in “lawyer” mode from our discussion on dower rights. But I was reading and thinking (there I go thinking again!) about your point #3. I was wondering if prior to these folks filing BK, is there any benefit that an investor might have in becoming a creditor to the these folks to take advantage of the bargaining power you elude to? Now, the fact that the sellers are already in FC but not yet in BK, the lis pendens would prevent you from becoming a “secured” creditor as to the property anyway.

So say you lend them $500, get a legal promissory note from the seller and use this debt as your own bargaining chip? Maybe you have some leverage with the bank if you call them and say something like “These folks owe me money too but I am unsecured. Let’s work together to see if we can’t come out a little better than we might otherwise.” I imagine they may get wise if part of your solution is them shortselling to you. Would you have to tell them you were owed $500 or could you let them believe it was $500,000? Would this be legal since it would not be arms length since you would tell the seller this was your plan? Does it flirt with the unethical? You could secure your $500 by getting the deed first, No?

Maybe this is farfetched, but was owndering if you have any thoughts.

Best Regards,

Tim_Cleveland