Question for Bronchick (and anyone else) (long) - Posted by Ben

Posted by NJDave on May 07, 1999 at 15:05:44:

My organization would be happy to help see if she can get her affairs in order. Call me, Ben.

Society For The Preservation Of Continued Homeownership

Question for Bronchick (and anyone else) (long) - Posted by Ben

Posted by Ben on May 07, 1999 at 11:46:19:

I have a rather delicate situation. I am foreclosing
on a nice property, am about three weeks from final judgment
but have two problems. First the property is in the same town that I live in. Second, the owner is an elderly widow.
I have given her extension after extension, break after break, etc. she cannot pay this off. This is a small gossipy
town where everyone knows each other’s business and my
family has lived here forever and is quite respected. The
entity foreclosing is a corporate LLC of which I am president so there is no connection to me there. However,
if some nosy neighbor (or god forbid, local reporter) decided to check into it my name would probably come up on a corporate status search, right. Anyway, my question is can I retroactively set up a land trust? Is it too late for this particular entity? Should I form a new one doublequick just to do this deal and assign all the docs to the new entity?
Any suggestions would be appreciated? Help!

Save the home? - Posted by John Behle

Posted by John Behle on May 07, 1999 at 12:39:19:

Without details about why she hasn’t or couldn’t pay, this may not be an option. If she wants to stay there, could you refinance and sell to her on a wrap. Refinance a first and carry back a second. Lease option to her to let her stay there?

If she can’t catch up back payments, could you just re-write and extend the loan? If her finances are just too bleak, there may be some state or federal programs to cover it or subsidize her. Some programs will help someone with house payments and others will help with rent.

You may be able to let her keep the property and still get paid. You could also sell to an investor that will work with her on a wrap or lease option.

Re: Save the home? - Posted by Ben

Posted by Ben on May 07, 1999 at 12:46:48:

Thanks John (and also for the other answer on your forum). The l/o may not be a bad option. If I took the home I would want to hold onto it for a year anyway to get long term capital gains treatment. I could let her live there for another year and then flip it.

Re: Save the home? - Posted by CarolFL

Posted by CarolFL on May 07, 1999 at 13:57:41:

Ben, Is she still entirely competent, or is there perhaps a relative who can assist in seeing that her finances are in order? That, too, is delicate, but if she has the funds but is having trouble relating to reality, it’s a possibility… or automatic funds transfer monthly, so she can’t forget.

John is right, we are lacking some info as to her ability and willingness to make acceptable payments, but also as to her capacity to deal with things.

No offense to the older population … I am gaining on it myself!