Posted by Robin on September 21, 2003 at 13:37:03:
I am in the process of refinancing now. Just trying to avoide a defualt notice. I am not sure what effect that will have on me ie. credit, public records future purchases etc.
Help Fin Co stole my $ now trying to take house - Posted by Robin
Posted by Robin on September 20, 2003 at 21:16:19:
Hi,
I have a problem that needs a very quick solution. I have a 1750.00 per month house payment on the personal home. I have paid each and every payment before the due date. I bought this house in May 2003 it was a Wells Fargo REO and
had a lot of equity. Its a lakeside house in a great nieghborhood. I didn’t have any credit or a credit score at the time and the finance company (local one) said they could finance me as long as the house had enough equity (hard $ I guess) well the house is worth 315K and I bought it at 175K. I think they really just wanted the house and here’s why… They were going to finance the house at 100% percent with me purchassing it directly from the owner before foreclose. I went to their office to sign all the papers (for the 3-day right of recision) I only met with the secretary but when I left the office 2 men were watching out of an office window. The next day (during the 3 days) they changed the interest rate to a higher one. Next day the ofice said they had gotten the wrong figures for purchase and could no longer do the deal. By the fourth day the property went to the steps. The bank got it back. I went back to the finance co. with the new amount that the bank wanted and this time they said the only way they could do the deal was if I put in 21K towards the purchase. Well I escrowed 25K to them to cover closing and anything that poped up. I should have gotten back 4985.00 at closing they did not give me my money and they kept it to so call pay for some of there fees that they were taking a 2nd mtg for. Well they took the money and still gave me a 1st mgt for the purchase amount and a full 2nd mtg for their fees. Now I get a letter saying that the second half of the taxes for this year 2k have not been paid and I need to pay them before Sept 27th or they will be fileing a notice of default and begin foreclosure proceedings. Yes, my deed says I have to pay taxes when they are due. But granted I have been paying my mgt on time and they stole my money I need to know what to do that I can do quickly that will stop them in ther tracks. And although I had plan to pay the taxes, not this month and I don’t have the 2k right now. Please help with any suggestion. Thank you in advance.
Robin
It is Attorney time. - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on September 20, 2003 at 21:47:05:
Robin---------------
It is attorney time. Get an attorney to check what went on at that closing. IF you find out that they did cheat you get the attorney to demand that they pay you what you are owed. Understand that there usually are closing costs when one buys a property. And first-time home buyers often are shocked how much they are.
ALso try to get up the money and pay the taxes before their deadline. You do not want a notice of default filed against you. Borrow from friends or relatives if you can. If you can’t pay them, when can you do so? Ask them to not finle a notice of default if you can get the taxes paid within the month of Oct, for instance.
Now, you like the home, perhaps love it. However, ask youself the hard question. Can you really afford to own it? Can you pay all the taxes, mortgage, insurance, and maintenance on a regular basis? If not, you may have to consider some of the following: sell the property and buy one you can afford. Take in a partner to help you make payments. See if you can find a new lender at a lower interest rate than this company charges. Some lenders will do a refinance after six months of ownership. That would be in November sometime. You could apply now and close the new loan then.
Good InvestingRon Starr****
Ron…what about… - Posted by Robin
Posted by Robin on September 20, 2003 at 22:00:14:
Yes Ron I can afford the house. The escrow agent stated to me on th phone that they kept the money to pay down the 2nd mgt for the fees. However, they did not have an ok from me to do this. They sent me a letter on Thur the 18th to pay the taxes by this friday. Can they legally give me suck short notice to pay the taxes. Also my deed says that any notice must be sent certified return reciept they only sent is first class. How can I use either of these to buy some time 30 days would do it. I am in the process of refinanceing as we speak because I purchase on a land contract 2 years before the new company took that as seasoning. However, I am not sure if I’ll close before friday. I was looking to close on this past friday the 19th but they need an updated appraisal and they are in Maryland and Isabel is getting in my way.
Re: Ron…what about… - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on September 21, 2003 at 07:23:16:
Robin–(MD)---------------
Again, you ask questions that are legal in nature, not real estate investing. I am not an attorney.
I don’t know whether the notice of such short action is legal or not, that is a question for an attorney, in my opinion.
That they sent the notice in a way that violates their own rules suggests to me, a non-attorney, that you can buy some time by responding to them about next Wednesday, pointing out that they have delivered their message in an improper way and thus their requirement for you is not valid. And thus they cannot file a notice of default so soon. However, I’d be a lot more comfortable if you were to get legal advice on this, rather than relying on what I say. I suspect that they can file the notice of default anyway. They probably do not have to give you notice about the back taxes being owed before filing a notice of default. That is probably just a courtesy letter. However, I don’t know what your loan documents specify for such matters. That you should read yourself or go to an attorney to discuss, it seems to me.
If you can get the back taxes paid up by the end of Oct, I’d communicate that to them and promise to get it paid by then and do so.
Good for you being able to afford the property. Sounds like you got a super deal. Good for you refinancing.
Now, this is more confusing than ever to tme. Your original post talked about making a deal with the owners to buy the property just before the lender auction sale. Now you are saying that you had a 2 year old contract of sale on the property. This sounds a bit strange to me.
The only way I can reconcile these two facts is to assume that you had had a contract for deed and then discovered the foreclosure and agreed to a quicky purchase form the owner(s) which did not take place, then you made a deal to buy from the lender-owner after the foreclosure. If that be so, it sounds as though you did not nave a system set up to verify that the the vendors were making the loan payment even though you were sending them their payments. It’s too late to discuss this issue with you. But, other people reading this post would do well to have such a system set up if they buy on a contract for deed.
Good Investing***********Ron Starr*******************
Re: Ron…what about… - Posted by Jeremy
Posted by Jeremy on September 20, 2003 at 23:39:14:
Don’t get flustered you have time they just can’t foreclose on you and take the property that day they have procedures they must go through which usually take at least a couple of months. If you can qualify for a re-fi you should be fine.
Re: Ron… you are correct… - Posted by Robin
Posted by Robin on September 21, 2003 at 13:34:26:
Ron you are absolutely right…The owner defaulted on her payments and I had no system set up to verify her payments. That may or may not have worked as she continued to file bankruptcy 7 first converting to a 13 to by her on time. However, time as time will do caught up with her and thus my story begins.
Yes I realize that you are not an attorney and neither are most of us who post here but my experience with attorneys is that it pays to have some ideas of your own or suggestions when talking with them. I have also posted this on the legal forum and just waiting for Monday to make an appointment with my attorney.
Thanks for all your help
Robin