Posted by David Alexander on April 11, 2000 at 18:00:57:
I’ll have him see if there is a law like that in Texas.
Thanks,
David Alexander
Foreclosure, … wierd deal - Posted by David Alexander
Posted by David Alexander on April 11, 2000 at 12:27:11:
A friend of mine has a property that he financed. The Lady in the property was in default. He went through procedure to foeclose all the while trying to work it out with here. It was like her third time getting behind.
Anyway, she (were in Texas) quitclaimed 1% of the property to someone in California and then he filed bankruptcy. The foreclosure went through and then a few weeks later they were notified that the foreclosure was invalid because of the bankruptcy.
Anway now the lady has her money wants to reinstate but the property is 1% owned by this guy in California that filed bankruptcy to stop the proceedings.
Anyway, anyone ever had experience with this. The only thing I noticed was that there was no consideration in the quitclaim deed.
David Alexander
Re: Foreclosure, … wierd deal - Posted by TomC (Md)
Posted by TomC (Md) on April 12, 2000 at 11:29:41:
Any chance your friend has DOS langauge in the note?
Seems to me that transferring any portion of ownership (except land trust, yadda, yadda) is the trigger. Wouldn’t the slow-paying lady be suprised when she gets notice that the loan is being called due?!
Re: Foreclosure, … wierd deal - Posted by Eric C
Posted by Eric C on April 12, 2000 at 24:35:32:
Hi David -
I agree with Mr. Kaiser, this looks to be a case of fraud. Plain, but maybe not so simple.
BK fraud is a federal crime and the group charged with investigating these issues is the FBI. Most of the time they are really bored with these cases, but they can get irritated when they perceive that someone is jerking their chain. Most Trustees and Judges don’t seem to harbor any illusions about BK’s either.
Over the years, I’ve experienced BK shenanigans twice. In both cases, a few calls, a letter or two, and a little more money resulted in a satisfactory conclusion (for me).
The BK world isn’t very large. Trustees usually have close ties to their counterparts in other jurisdictions. Many times, a phone call from a well respected source can cut through all the red tape and make a world of difference.
Who (specifically)notified your friend that the foreclosure was invalid?
Call your local banker and ask for the name of their counsel. If you have a reasonable relationship with the banker, now is a great time to garner some sympathy from him(or her) about this situation. All banks(and bankers)have been there.
Without specifics, it’s difficult to point you in anything other than a general direction. Get good legal advice from someone who has been through this process before – successfully.
Good luck,
Eric C
I love weird stuff! - Posted by JD
Posted by JD on April 11, 2000 at 22:31:13:
There variations of this technique that would make interesting reading. As far as your question goes: I am not sure what you mean by “the foreclosure went through”. If all you mean is that a sale was approved by the Judge, but that it has not gone to sale yet, then I dont see any reason not to allow the woman to reinstate. If it has gone to sale, then it becomes a matter of who knew what when, but if the woman has all the monies, including foreclosure costs, to reinstate, then IMHO it would probably be best for all concerned to just let her reinstate.
Here’s the story, I suspect . . . - Posted by JoeKaiser
Posted by JoeKaiser on April 11, 2000 at 16:59:35:
There are people in California, or so I’m told, that will stop your foreclosure for a fee. They do it by getting themselves on title (the 1% thingie) and filing bankruptcy.
It used to be a recommended thing in one of those “discover the hidden fortunes in distressed real estate” books, and at one point when I was very naive, I even tried it (not this method but the same sort of thing).
It looks to everyone like bankruptcy fraud, and I had a long long talk with the US Trustee one time about why it wasn’t such a great idea (and no, I wasn’t there voluntarily). He advised me that the advise given in the course was “reckless” and that jerking around lenders in federal court was not the best investment vehicle to hitch my wagon to. I promised not to do it again and he promised he wouldn’t make me jump through hoops and that all was forgiven.
I’m guessing they haven’t had “the talk” yet, but that they’re likely to some time soon.
Joe
This sounds like “heir-hunting” and is illegal in NJ - Posted by Ben (NJ)
Posted by Ben (NJ) on April 11, 2000 at 15:52:02:
This was happening with tax foreclosure actions so the NJ legislature passed a law. NJSA 54:5-89 provides “no person…shall be admitted as a party to such action nor shall he have the right to redeem the lands from the tax sale whenever it shall appear that he has acquired such interest in the lands for a nominal consideration after the filing of the complaint, except where such transferee is related by blood or marriage…”
Re: Here’s the story, I suspect . . . - Posted by David Alexander
Posted by David Alexander on April 11, 2000 at 17:59:53:
I figured it was some sort of thing that could be construed as fraud. Cool, maybe there will be an easy way out for my friend to get his property back and then reinstate.
Thanks, Joe
David Alexander