Posted by Rich-CA on June 01, 2007 at 14:37:27:
If the foreclosure has already happened, you need to determine if you have any redemption rights on the property. To do that you’d have to be able to pay off what is owed. Otherwise, you are out of luck and your credit is not going to look good for a while.
This is one reason not to do anything where you trust someone else to make payments on an account with your name on it. Here is your #1 risk. It may very well be too late to do anything at all.
our tenant buyer is beeing foreclosed on - Posted by john
Posted by john on May 30, 2007 at 12:07:47:
Any advice from anyone is appreciated:
I have been an investor for a few years but this is the first time this has happened:
The personal house that my wife and I owned we sold on a lease option when we bought a new one. The tenant buyer had been in the home a while and we got him financed for 80% of the value and we took back a $27,000 2nd mortgage.
He had opened a new business and has been paying on it responsibly for 2 years. In our communication with him the past year he had been saying that he was going to refinance and pay us off.
Well, we find out today that he was foreclosed on by the first and it’s already been to the sherrif’s sale.
Now everyone always talks about doing short sales and the 2nd is wiped out but no one ever has advice if you are the 2nd!?!?!?!?
Does anyone know of any recourses we may have to try and collect our money or are best off to say bye-bye to that money and get over it?
Anyone been here???
Hope everyone’s investing is going smoother than this snafu.
Thanks,
John
Re: our tenant buyer is beeing foreclosed on - Posted by Natalie-VA
Posted by Natalie-VA on June 05, 2007 at 09:09:10:
John,
You received a lot of really good answers with follow up questions. Can you elaborate on this at all?
–Natalie
Re: our tenant buyer is beeing foreclosed on - Posted by Sean
Posted by Sean on June 04, 2007 at 13:12:37:
You should have been notified during the 1st foreclosure since you had an equitable interest in the property, if you weren’t the foreclosure was handled impropertly (at least if your state is like mine), and you can have legal recourse.
Re: our tenant buyer is beeing foreclosed on - Posted by Jimmy Jam
Posted by Jimmy Jam on June 02, 2007 at 19:53:20:
John,
In MY state, you should have been served notice as an interested party. This would have given you opportunity to act upon the problem.
My gut feeling is there is something definitely wrong with the way notice was given (i.e: NOT given).
JJ
Re: our tenant buyer is beeing foreclosed on - Posted by Kristine-CA
Posted by Kristine-CA on June 02, 2007 at 11:43:44:
Something is way wrong here. Are you in a mortgage state or trust
deed state? You say a sheriff’s sale was held, which sounds like a
judicial foreclosure. What type of notice is required where you are?
You were most definitely a party of interest…and you weren’t named in
the suit? This borrower made his payments to you up until when?
Of course you want to look into why you weren’t noticed. You may be
entitled to excess proceeds if there were any. What did it sell for at
sale?
How did you find out about the foreclosure, exactly?
There are many here on this board who will have experienced insight,
so please post your state. Kristine
foreclosed on - Posted by Nike
Posted by Nike on June 01, 2007 at 14:55:35:
What state are you in? You need to determine why didn’t get notice that the first was foreclosing–are you sure you recorded your mortgage? How many months was he in default on your note? What business did he open? Was it incorporated? Is he still operating the business? You need to sue on the note and get judgment against him. Post more information to help sort this out.