Need advice...heres the scenario - Posted by shortsale

Posted by GL - ON on August 03, 2003 at 09:51:19:

Have you talked to the Wells Fargo people? Call them up and talk to them. Explain that you have bought the house and are making payments on it and keeping it in good repair and will continue to do so. So they have nothing to worry about. But if they really insist on taking it, you will have to let them have it. But of course you will stop making payments and you also can’t take responsibility for what happens to it between now and the time they take over and sell it. See if they don’t back down.

You could also tell them that you are trying to arrange new financing but it could take some time. If they will hold off for a couple of months you will pay them off.

Could your tenant buyer get financing and take the place right away? Or within a reasonable time, before the bank takes it? You shouldn’t have to offer any incentive to get him to do this but you should work with him and do what you can to put the deal through.

If not, maybe you could find a new buyer and sell it quick and take what you can get for it. Hopefully a small profit.

By the way if you ever had to go to court, if you could prove you were making the payments on time, and keeping the property in good shape, and the taxes and insurance were up to date, I wonder if a judge would take the house away solely on the due on sale clause if they had nothing else on you? I know that’s the law but I have gone to court against tenants with a stronger case than that and lost. It would be interesting to find out.

Need advice…heres the scenario - Posted by shortsale

Posted by shortsale on August 03, 2003 at 24:16:24:

Hi. Heres my situation and any advice or ideas will be greatly appreciated. I took a property subject, got the dded and have been making payments. As part of my agreement with the seller, he agreed to make up 1 payment in the future. I caught the loan up by taking a 5k down payment from a new buyer on a land contract. In the mean time the previous owner disappears and not only never makes the payment, but also files ch. 7. To date I have been unable to locate him. As a result, the lender, Wells Fargo, has released him from the loan and accelerated the note due to the 30 days running and the late fees. I was unaware of this until last month. Luckily, last month my buyer violated his contract with me, giving me the right to cancel the land contract (love Lou Browns contracts). Today the Sherrif served him papers to move out within 20 days and of course he is seeing an attorney to try to sue me first thing Monday morning. So, with this in mind, should I

a) somehow continue my foreclosure on him for defaulting?

b) refund his original down payment?

c) offer him my 30k profit on the back end by dropping his payoff 30k and hope he can refi in less than 20 days?

d) Try to find a private lender to help?

e) roll the dice and walk away, letting Wells Fargo take the house back?

I have no money in the deal and the guy did default on our contract, but legal fees add up quickly!! Anyone got any feedback?