Posted by Irwin on December 27, 1998 at 12:37:29:
Shows you how much I know. As the old saying goes: Take the money and run.
S O S!!! Help me (us) in DIAMOND forclosure deal - Posted by stephan cosmos
Posted by stephan cosmos on December 26, 1998 at 18:46:12:
(Technically my fathers’ deal but sharing profits)
(nice dad heh?)
Here it is breifly, we put $1000.00 ernest money on a purchase agreement. The house at the time was worth aproximatly 105,000 we got a deal for 85,ooo, now, a year later it’s worth 115-120.000.00. Shortly after when we wanted to close the occuping owners decided not to close, or pay the mortgage or move. Anyways to make a long story short, it’s a little less than a year later and the bank is in final rounds of forclosure. Of course we had put a caveat on the house earlier.It is now dec 26 and I figure that our days are extremely numbered for this deal. We have contacted several investors and brokers,it’s almost as if no one knows anything about forclosures, (they take for ever too). This situation is in Calgary, Alberta, Canada.
Does anone have any suggestions?? We need to assign this sweet deal fast, but do not know where to find resources. I know we’ve got to sell this wholesale, and believe me we’ve asked less than that but no bites. oh I forgot to mention a few things here,…we have no money or credit. And that there are three other liens against the house. There is some good news however, our lawyer has spoken to the bank. The amount owing on this house is 66,000 dollars payable to the bank. Our lawyer told us that if we repay the bank that the house(their mortgage) could be taken over. And that the other liens would be automaticaly swept away. I always thought that they would remain on the house until paid back. Right now we don’t even have time to place adds in the newspaper.
help…S…O…S cosmos thanks
or call me (STEPHAN COSMOS) with your suggestions at 416 292-0225(24HRS) I would be extremely happy to hear your advice ANYTIME. Again thanks everyone, happy holidays, and sorry this was so long.
Re: Help in DIAMOND forclosure deal - Posted by Irwin
Posted by Irwin on December 27, 1998 at 06:04:21:
Let me see if I understand this. You have no money, no credit, can’t find an investor to work with you, and you have a contract with a nutcase who would rather be foreclosed on than sell his home for $19,000 more than the first mortgage balance. Some facts.
In reality, you have nothing to sell at this point. Your contract with the buyer is worthless without litigation to enforce it. This is probably why you can’t find anyone to flip (wholesale) to. No one wants to buy a lawsuit. Frankly, in this situation, you’re pretty much out of luck without money of your own. There are two directions you can go, but, as I said, both would require money of your own.
The first is to see if your lawyer can find a way to stall the foreclosure sale (I assume there is to be some kind of public auction) long enough for you to sue the owner and force him to comply with his contract. This will probably require you to buy out the first mortgage, or at least bring it current and continue to make the payments while you litigate with the seller. This is likely to be a long, drawn out and very expensive process. Plus, I don’t see how you would get rid of the subordinate liens this way, other than by settling with them for pennies on the dollar along the way.
The second, is just buy the property at the foreclosure auction, which I presume will clear the liens under Canadian law. If the mortgage debt is only $66k and there are no other bidders, you will have saved $19k on your original contract offer.
Sorry, but I don’t see any other options for you.
Re: Help in DIAMOND forclosure deal - Posted by COSMOS
Posted by COSMOS on December 27, 1998 at 09:30:03:
THANKS FOR COMMENTS IRWIN.
ACTUALLY IT LOOKS LIKE WE’VE FOUND SOMEONE TO TAKE OVER OUR PURCHASE AGREEMENT(15,000 PAY OUT). THEY ARE GOING TO PAY THE BANK THEIR MONEY, TAKE OVER THE HOUSE, AND THE LIENS WILL BE SWEPT AWAY. THEY WILL MAKE 30 TO 40 K$$$(EQUITY THAT IS BUILD UP ALREADY)