I Reinstated Loan…Now What’s the Bank Up To??? - Posted by mark
Posted by mark on September 10, 2003 at 05:35:00:
After several months of trying to negotiate a ‘short sale’, I had to settle on ‘reinstating the loan’ one day before the auction date. It is still a good deal.
At the last minute the bank said they had everything they needed to consider a short sale except for the ‘financial statement’ of the owner…who by the way was no longer even in the state.(FLORIDA) I told Washington Mutual that even I was having a hard time bumping into the owner since the house was thirty miles away and he had no phone, but I was sure he hadn’t gone anywhere. The bank also mentioned to me that if the owner had transferred title to me, it may be considered an illegal transfer. Actually we had put the property into a ‘trust’.
Today the bank called and said someone had reinstated the loan and wanted to know if the owner was out of the picture. My wife who answered the phone said he was not out of the picture and she basically said we still wanted to buy the property. We are not sure if they realize it was us who reinstated the loan.
Here is my question: WHY DO YOU THINK THE BANK CALLED US AFTER THE REINSTATEMENT WANTING TO TALK TO THE ORIGINAL OWNER? Here are the possibilities as we see them;
A) They know the owner is probably not a good loan candidate any longer and still want to continue with a short sale.
B) They are suspicious about the reinstatement and are trying to find a reason to call the loan due.
ANYBODY HAVE ANY GOOD IDEAS ON THIS ONE. I DON’T INTEND CALLING THEM BACK UNTIL I CAN FIGURE OUT WHAT THEY MIGHT BE AFTER. I CAN SAVE ABOUT 18K BY DOING THE SHORT SALE VERSUS MY REINSTATEMENT. Thanks.