Posted by Warner(Atl) on February 02, 2000 at 14:16:48:
What I posted above could be a double-edged sword, because if the bank finds out about the default… nobody gets paid. Well…hopefully, my posts help clear the picture up a little.
Warner
NOD to be filed… They want to offer a discount on note… pls help!!! - Posted by LJ
Posted by LJ on February 01, 2000 at 21:09:38:
I currently hold a second. I forwarded the borrower demanding he bring hte accout current. The borrower never responded >30 days. Then one day a title company calls and tells me to forward my demand; as I was going to be paid out of escrow. I forwarded the demand and then out of the blue I called to find out when te loan would close (The day I was told to forward my demand the borrower was coming in to sign papers). So… the borrower is in escrow right now refinancing his primary residence…not the property which I hold a lien to. He took me out of the escrow and told the officer I would be paid outside of escrow. I found this out by mistake. He nor his loan officer ever called me. I don’t know when loan is closing. I called him and told him I would move forward witht the NOD if I was not paid out of escrow. Today his atty called to determine if we can negotiate.
Question: Can I re-negotiate the terms of this loan… ie interest rate? Maturity date… legally. Do I have to re-negotiate or can I move forward with the foreclosure. If I must re-negotiate how can I make the most money?
I am hoping that the NOD will be recorded tomorrow morning. I think he tried to play underhanded and never intended to pay this note in escrow.
Please advise
Re: NOD to be filed… They want to offer a discount on note… pls help!!! - Posted by Warner(Atl)
Posted by Warner(Atl) on February 02, 2000 at 14:02:53:
LJ,
I am far from a legal expert but here is what I think. I would IMMEDIATELY file the NOD…regardless. In most states this shows up as a lis pendens (lawsuit pending) on the court records. This should create a cloud on the title of all real estate owned by the person (including the house he is refinancing). When this happens the title company giving the mortgagee policy to the bank should be very hesistant in doing so, until the matter is cleared up. If the matter is not cleared up the bank will probably not go through with the refinance. The attorney probably knows this hence the “let’s negotiate”.
I repeat DO NOT! let his escrow close prior to you filing the NOD. IF it does you have lost a golden opportunity to get paid early. If you file prior to closing of escrow and the bank still goes through with the refinance, depending on the laws of your state, your lien may be first in position behind the banks lien, leaving you in an excellent position to collect your money…All of it (no discount).
Again, this is my opinion, you should obviously consult an attorney to see where you stand.