Posted by IB (NJ) on September 09, 2003 at 23:16:04:
Hi Mark. I’ve been trying LIKE MAD to find an atty. in NJ who knew enough about land trusts and transferring/selling beneficial interest WITHOUT recording a deed (am I right to assume you did this?). Who’d you use as your atty.? Please email me at eeb88@yahoo.com - Thanks.
I Reinstated Loan…Now What’s the Bank Up To??? - Posted by mark
Posted by mark on September 09, 2003 at 20:48:42:
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.
I Reinstated Loan…Now What’s the Bank Up To - Posted by JohnBoy
Posted by JohnBoy on September 09, 2003 at 21:52:13:
I think you can probably forget about the short sale for now, since the loan has been reinstated. The loan is no longer in default at this point so the bank has no reason to consider a short sale.
They are probably trying to see if the property was transferred. But WHY is the bank calling YOU at this point??? The loan has been reinstated so they have no reason to be calling you about anything. By them calling you they could be in violation of the new privacy laws by discussing anything with you when you have nothing to do with the account.
I would ignor them! If they call again, then just say, hey! Why are you calling me??? The owner reinstated the loan. We wanted to buy the property, but when I talked to the owner about buying it again, they told me they caught up on the payments and plan to keep it now. They are no longer interested in selling it. So you need to talk to them about anything. We have nothing to do with it. (since they can’t seem to get a hold of the owner then everything should blow over as long as the payments are being made on time)
Do NOT call them back. Just ignore them. If they call you again then play dumb like you know nothing like I stated above.
Do as JB is telling you to do. - Posted by Marc NJ
Posted by Marc NJ on September 09, 2003 at 22:22:16:
I had one such deal that when the bank called me back after the reinstatement, and ask if the property had been transfered, I said yes, into atrust inwhich the sellers were the benificiary, and I was the trustee. I told them that there is an address change and to mail the monthly statements to it in my name ,as trustee, but behind the scenes we had a benifial interest transfered to my LLC. Which is all working out well, this is a short term sub2 deal, and after the rehabs completed we will sell for 50-60K profit.
COOL!
Good luck,
Marc NJ
Re: Do as JB is telling you to do. - Posted by JackNJ
Posted by JackNJ on September 10, 2003 at 06:26:41:
If you don’t mind, what is the name of your attorney in New Jersey?
Thanks
Jack