Posted by Heidi W on March 24, 2002 at 23:23:15:
See my post a few lines below - I got this answer on from Rudy…
Get an attorney to get a TRO) Temporary restraining order from a court Judge the afternoon before the sale so the lenders attorney does’nt have time to get a lift of stay.
That will buy ou some time but will add more cost to the reinstatement amount.,Rudy-Austin
Help! Need to stall Trustee Sale. - Posted by DavidCAL
Posted by DavidCAL on March 24, 2002 at 03:02:56:
I am trying to complete a deal. The house gets auctioned at trustee sale on Wednesday. I have a signed sale agreement with the owners. I have negotiated discounts on the 2nd and 3rd trust deeds, although still awaiting it in writing. The first won’t extend the sale date. The owners won’t file bankruptcy because they plan to file soon and their attorney said that if they put in the paperwork now and then cancel it in order to extend the sale, that the judge might make them wait 180 days to file again and that would be bad for them.
So. Is there a way to put the property into trust, and assign the interest or have the trust do a bankruptcy or something else creative? We need a BK to be filed, but not under the owner’s names. I need a practical and legal solution. Thanks,
Dave
Re: Help! Need to stall Trustee Sale. - Posted by G. DeMars
Posted by G. DeMars on March 24, 2002 at 14:39:34:
I have heard that it’s also possible for the owners to deed 10% interest in the property into a trust, the trust having a benificiary who has an existing BK in progress. Your owners can then fax a copy of the other BK to their lender and stall the sale for 30 days.
The BK will then not show up on their record.
Or something like that.
Re: Help! Need to stall Trustee Sale. - Posted by Nate(DC)
Posted by Nate(DC) on March 24, 2002 at 12:58:29:
If you are planning to buy the 2nd and 3rd, that implies to me that you have some cash. Why not have the seller give you a deed to the property and you use that cash to bring the 1st current?
However, I would not do even that until you had written confirmation of being able to get the discounts you need on the 2nd and 3rd.
It might also be possible to transfer the property to an LP or LLC and have that entity file for BK. I think Ron Starr has posted that he did this once. Ask him.
Good luck,
NT
Is this legal? - Posted by DavidCAL
Posted by DavidCAL on March 24, 2002 at 16:27:26:
I have heard this too, but is it legal? And, how do I get the 10% back? Do I have the
beneficiary in foreclosure assign back the beneficial interest to me and
then produce this document at closing?
Thanks for the input,
Dave
I AM Planning to reinstate… - Posted by DavidCAL
Posted by DavidCAL on March 24, 2002 at 14:11:18:
I am planning to reinstate the first and take it over subject to. The problem is, I don’t feel comfortable doing this without an escrow company and I don’t think everything will be in place to close by Wednesday. I think I just need a bit more time.
Re: Is this legal? - Posted by G. DeMars
Posted by G. DeMars on March 24, 2002 at 17:32:15:
I’m not sure, but I think at the same time your owner deeds his 10% to the trust, the other benny in the trust deeds back the 10% to your owner, but that doesn’t get recorded until you’re ready to close.
As for legality, it should be legal, and if not, you’re not party to it, so it shouldn’t effect you. But I don’t see how it could be unlawful. Worst case the BK court tosses it out, but by the time that happens you got your’s. And the foreclosing benny is getting their’s, and everyone’s happy!
Re: I AM Planning to reinstate… - Posted by JoeKaiser
Posted by JoeKaiser on March 24, 2002 at 21:55:26:
Go buy the 2nd.
As the holder of the 2nd, you have certain rights, including the ability to reinstate the 1st, add those costs to your 2nd, and foreclose away the 3rd.
I promised the seller to prevent foreclosure - Posted by DavidCAL
Posted by DavidCAL on March 24, 2002 at 22:00:55:
I can’t forclose out the third because I told the sellers I’d prevent the foreclosure. (besides, they agreed to discount a $19,000 3rd for $2,500).