Posted by js-Indianapolis on September 12, 2003 at 17:16:05:
“Maybe you’re seeing things out of order?”
Not at all. Just looking at it from a different perspective. Why not skip the FC, Sale, redemption period, etc, and just get a deed in lieu, and sell as REO?
The only thing I can think of is that the bank knows what a pile they have, and would rather let someone else have it than ever assume this thing, and the risk. If it’s that devalued in their mind, I’m going to see just how low they’ll go on this sucker. Maybe try buying the mortgage for $10K, and finishing the FC or getting deed in lieu myself.
Posted by js-Indianapolis on September 12, 2003 at 12:57:02:
I always see “in rem” in the judgments I see in foreclosure cases. I’ve never thought of the literal meaning of it, I just know that the amount I see is the judgment amount. However, today I got this email from someone I’ve been working on a short sale with:
“…the lawyers (foreclosing lender?s lawyers) representing the property are willing to accept the home in rem, meaning they will accept the home in foreclosure and will not pursue collection on any outstanding indebtedness from me…My lawyer indicated that a judgment regarding foreclosure would be entered in court fairly quickly.”
Uhm, OK. Home in rem? Is he trying to say they will accept a deed in lieu? It sounds as if he?s actually just admitting the lenders claim of default, accepting the judgment, and the lender has agreed not pursue a deficiency amount (they can?t anyway, he filed BK). If the latter is the case, why not just give a deed in lieu?
If anyone can shed some light, I’d be much obliged. I need to get back to him ASAP.
Posted by retraker on September 12, 2003 at 15:34:00:
From Black’s Law Dictionary, 6th Edition:
In rem; A technical term used to designate proceedings or actions instituted “against the thing”, in contradistinction to personal actions, which are said to be “in personam”.
…In the strict sense of the term, a proceeding “in rem” is one which is taken directly against the property or one which is brought to enforce a right in the thing itself…
The guy filed BK so all they can do is take the property.
Posted by js-Indianapolis on September 12, 2003 at 16:25:33:
OK, that makes sense. It’s as he said, they are not going to be able to go after him. So, now, all I have to do is figure out why in the world he’s pay a lawyer, and going through proceedings, as opposed to just give a deed in lieu?
Again, I’m in a short sale situation here. A large one at that. Trying to gain insight into what the bank might be thinking. Perhaps they don’t want the property as an REO? They would probably be better off taking this through the sheriff’s sale, clearing the title that way, and never owning this turd. I bet they take 50% or less if that’s what they are thinking.
$60K owed, been listed for a year at $50K, no takers. it’s worth $40K on a good day. I bet they are looking for this to bring $30K at the sale, which it might, with all the nimrods at the sales now. I’d give $20K, maybe $25K.