Posted by JohnKS on January 19, 2001 at 10:39:21:
Kevin …
Liens are only $2,900, and she’s three months ($3,600) behind. The house is in a run-down neighborhood, and yes, it’s been thoroughly abused in it’s three short years.
It’s located in a small town about 50 miles from Kansas City, and most of the farm homes (for sale) in the area go for around $30K. The equity (as you noted) seems good enough, but if OCWEN manages to get it sold for $80K, they should be VERY happy.
Evelyn Wood can’t help … - Posted by JohnKS
Posted by JohnKS on January 17, 2001 at 07:57:53:
May be a moot point, but I got a call yesterday (in response to my “I buy houses” ad) from a lady in foreclosure. I’m short on details (and a newbie to boot) but the bottom line is … she’s about a week beyond her redemption period, and still trying to save her property.
Today, I’ll cram on “Foreclosures” from two gurus tapes and books, but my sense is that it’s too late to help her out. Meeting with her this afternoon to fill in all the blanks, but any words of advice (beyond “read at light speed”) would be appreciated.
Re: Evelyn Wood can’t help … - Posted by eric-fl
Posted by eric-fl on January 18, 2001 at 10:43:35:
What’s a “redemption period”? Sounds like a lender-contrived limit to me. The only point at which a foreclsosure is beyond redemption is after the house is sold at auction, and not even then in some states (I think it’s called right of recission. Owner can reverse sale within a certain period of time.) Now, whether the lender is even still willing to negotiate is another matter, but there’s no legal reason I’m aware of that a default can’t be cured. After all, it’s up to the lender to enforce their own contract, and one would presume almost any lender would rather have cash in hand than a stick in the eye.
You definitely need to “fill in the blanks”, though. The major thing to find out is if their are any OTHER liens attached to the property, besides the mortgage. People don’t typically stop paying the house payment, but nothing else. In fact, the house payment is usually the LAST thing to stop getting paid. Before you spend all day cramming up on foreclosures, find out if there is any equity to work with in the first place.
Re: Evelyn Wood can’t help … - Posted by dewCO
Posted by dewCO on January 18, 2001 at 12:11:47:
Actually the redemption period is the time between the foreclosure sale and the state statute date that the onwer has to redeem the property, which means pay all the back payments, interest, attorney fees, etc. IF you are in a state that has redemption after the sale.
Re: Evelyn Wood can’t help … - Posted by JohnKS
Posted by JohnKS on January 18, 2001 at 11:16:16:
Thanks, Eric …
I appreciate your input. The redemption period is (correct me if I’m wrong, veterans), the time between “when the mortage payment is delinquent, and when formal foreclosure proceedings begin”. My meeting yesterday afternoon with borrower revealed that her 3 year old mortgage (on a 3 year old house) had been sold to three different mortgage companies, the most recent (and current) with OCWEN. A quick glance at the OCWEN website tells me that this has been a problem account for some time. This morning, I drove 40 miles to view the property (suspect FMV $135K, mtg balance $102K), and frankly, I wouldn’t give OCWEN $50K for the place. Oh yeah, and a handful of liens on the property.
Back to the drawing board … Thanks again, Eric, for your follow-up, and I look forward to seeing all of you in Atlanta …
JohnKS
Re: Evelyn Wood can’t help … - Posted by dewCO
Posted by dewCO on January 18, 2001 at 12:13:11:
See my post above this to eric, but if you are in a state that has a remdption period (after the sale), then what you refer to is probably the reinstateement period, which would occur before the sale.
Re: Evelyn Wood can’t help … - Posted by JohnKS
Posted by JohnKS on January 18, 2001 at 13:12:51:
Thanks again …
The letter from the Wichita attorney (never returns calls, can you imagine)handling the case states that the redemption period expires/expired January 11.
I don’t recall the details, but mention was made of a reinstatement period as well.
Grateful for your response … time to hit the books and tapes, and look for other properties …
Re: Evelyn Wood can’t help … - Posted by Kevin Subbert
Posted by Kevin Subbert on January 18, 2001 at 20:45:11:
Why not look a little deeper? How much are the leins? How much to bring the note current? Why would you not give more than 50K for the house? Is it tore up?
Seems like enough equity is there to make it worth your while, but I dont know all the details.
Kevin Subbert