NEED HELP!!!!! Property going to Forclosure this week - Posted by Chris W. (Wash./Md)

Real Estate Investing Real Estate Law
#1

Posted by Freddie Williams on March 20, 2000 at 22:30:25:

I have suggestion, run an ad in the paper mentioning owner financing and then create a mortgage and sell it witha simtaneous close thatw ay not only will you have some profit in the deal but you will also finad a buyer in less time. Also if you contact the bank they will delay trust me, they do not what to foreclose on the property. If you have any question for us to discuss this further contact me via email. I would be glad to help.

#2

NEED HELP!!! Property going to Forclosure this week - Posted by Chris W. (Wash./Md)

Posted by Chris W. (Wash./Md) on March 20, 2000 at 12:34:17:

I have a property that I acquire Subject-To. The homeowner deeded the property into a trust(Bill Bronchink’s personal property trust agreement) and I have 100% beneficiary interest. When I picked the property up it was in pre-foreclosure needing $4100.00 to reinstate and $4k in repair cost. The estimated repairs ended up at $7l. After reinstating the loan, the bank notify me that they miscalculated the reinstatement by $1k and that I needed to pay that along with the next month’s mortgage payment. I was out of money at this time but I had a buyer for the property. So, I gambled knowing that the buyer could purchase the home before foreclosure comes. However, the buyer backed out of the deal two days before closing which was two weeks ago. I wasted almost two weeks trying to get in contact with the buyer to find out what happened or if I could help. Now foreclosure is three days away.

I wold like to know has anyone used Joe Kaiser’s(Emergency Filing Method) where he sets up a non-profit corporation, then he deeds the property into the newly formed corporation and then file bankruptcy on the corporation. This wiil causes an automatic stay that brings all pending legal action to an absolute halt, immediately. The method is suppose to get you at least 30 days to work something out.

Has anyone used this method or any other method that is effective at stopping foreclosure within 2 to 3 days. I’m working out a short sale with the 2nd mortgage holder in which if they accept the loan amount for both loans will be approx. $35K on a property that was appraised at $83k (1st=($30k) + 2nd($18k- $13K = $5K)= $35k ). I don’t think there would be a problem getting a Hard Money Loan at 42% LTV.

Any advice, Idea’s or suggestions would be very much appreciated. Thanks in advance.

Chris Walker

#3

Re: NEED HELP!!! Property going to Forclosure this week - Posted by TCB

Posted by TCB on March 21, 2000 at 21:25:41:

My guess of how the bank mis-calc’d the reinstatement is 1)the account was escrowed and taxes increased while your guy was in default, 2)the note was an ARM, OR 3)the loan resolution consultant did not include legal fees/costs. If the funds you sent WERE posted to the account towards payments, you are ok!!!

  1. Do you have a letter from the mortgage note holder documenting the a FULL reinstatement? If so, they are legally binded to that amount IF and ONLY IF the verbiage of the letter states it would be a FULL REINSTATEMENT.
    If you do not have a document expressing the full reinstatement amount (which would be a critical error on your part), then request an immediate payment history. They can’t proceed with the same foreclosure action if the funds were posted to the mortgage. They will need to re-demand the loan and initiate a new foreclosure action. (Additionally, this can only be done if the loan is showing due for 3 or more payments after the funds posted.)
    2)Do the math. They said you still owed $1,000.00. If the payments are more than $333.34 they can not foreclose until the loan is re-demanded and “published” accordingly in your State, because it is impossible for 3 payments to be due.
    Also, you can speak with management and request a postponement of the foreclosure sale based on you good faith attempt to bring the loan current with your initial payment.
    3)Maybe they will go for this if nothing else. Request a forbearance plan to bring the loan current over the course of 6 months (even though you plan on selling the property prior to completion of the repayment plan.) I think this will do the trick if you don’t have the documented Full reinstatement letter.

I want to add if the funds have been posted to the account, it is NOT likey they are still foreclosing. The bank is only trying to recoup the funds ommitted from the initial reinstatement amount. Also, if you had a full reinstatement letter and they are still foreclosing, Maryland has a 6 month redemption, in which the lawsuit you file may prove to be very profitable. A foreclosure would clearly be against the Federal fair debt collection laws. You complied with the initial reinstatement amount they provided, and that action expressed good faith on your part. They, in turn, are not expressing good faith actions by completing a foreclosure action under the present circumstances. Good luck.

TCB

#4

Re: NEED HELP!!! Property going to Forclosure this week - Posted by Tarun_md

Posted by Tarun_md on March 20, 2000 at 20:59:32:

Hi Chris,
If I was in your shoes, I would try to call the bank and try to extend the foreclosure date. Just ask them what can YOU do to delay the foreclosure besides reinstating it immeditately. Tell them that you know what you are doing and if you can’t sell the house in a certain period of time, they can foreclose and then just get to work on finding someone faaaaast.
Also, I am curious about what your exit strategy is. ARe you trying to get a buyer a new loan to buy this house are you trying to sell on a land contract? I think that if you try to sell on a land contract or lease option and create a no qalifying deal, you should get a buyer fast.
Hope this helps!
Tarun Saighal