Posted by Ed Copp (OH) on August 17, 2003 at 20:41:14:
go to the bank and buy the note for cash right now. They will probably give you a discount for paying cash for thier defaulting note. Then you will be the one who is doing the foreclosure.
You can wait until the sheriff’s sale and pay cash for the property there. That won’t stop the foreclosure but you will own the property.
Her ex, whatever he is is absolutely correct in his opinion that he has ownership. He owns half, so when the property sells he will get half of the proceeds if there are any proceeds.
All rescue efforts at this point seem to require cash.
I would like to know what information I need to gather and what steps I need to take to help my girlfriend save her house from foreclosure.
Her situation is this, She had purchased a house from her parents on land contract and made payments faithfully to them for several years. In January of 2002 she went to a bank a recieved a loan to pay her parents off. When she got the loan her deadbeat boyfriend who never had a job and never made a payment on the house begged her to put his name on the deed (she knows a big mistake). Payments were made on time every month for 11 months by my girlfriend. In December of 2002 she asked her boyfriend to move out because she could not deal with him any longer and she was scared of him. He refused saying he owned the house, so my girlfriend and her daughter moved into an apartment. To make an allready long story shorter he has not made a payment since February and she was also unable to make the payments on the house and the apartment so she has received notice from the bank that they are foreclosing on the house.
The loan is for approx. $63,000 with payments including taxes and insurance of around $550. No payments have been made since Febraury. I am told by my girlfriend and her brother that the house would appraise for approx $90,000.
How do I save my girlfriends house and equity, and what can we do about the ex who seems stubborn and does not really care about his credit. Sorry so long.
Posted by Rosie_FL on August 18, 2003 at 09:51:57:
(I’m not a tax expert or accountant.) The girlfriend gifted him half the house. From the educational materials I’ve studied, there is a gift tax above the first $10,000 or so. Is he liable for paying tax on, say, $5,000?
If you can’t save the house maybe you can sock it to him and send him a 1099 or whatever it is that informs the IRS of him receiving such a gift.
Re: Help with Foreclosure (long) - Posted by TKP, Houston
Posted by TKP, Houston on August 18, 2003 at 24:04:21:
Brad, as Ed Copp is saying the ex-boy friend owns half the house. I believe the best solution at this time might be to offer him something for his share of the equity - on the condition that he moves out. He gets the money after he is moved out. Hopefully he does not know the actual value of the house ( or his 50%), and you need to point out to him that if the bank forecloses he will be forced out and his equity is gone. Of course, you don’t go this route unless you can afford to bring the loan current to avoid the foreclosure. A few thousand might well take care of the problem. Get a lawyer to help with the process. Good luck! TKP, Houston