Second is foreclosing-Ideas or advice please...... - Posted by Maria (FL*)

Posted by JT-IN on September 10, 2003 at 23:01:30:


You say: “son has been using the home equity line to the tune of 60,000 without moms ok”

This could mean several things here… What I assume is that they are both on the HELOC and either one can write checks agaisnt the LOC…? If this is the case, then there is NO recourse by Mom. If it is any other way, such as He had NO authority to write checks, then there is a fraud issue… Even if this did exist, I know most Mom’s would hardly prosecute their own son… but it is probably a moot point anyway…

Does she owe 84K plus 9 payments…? If so, then she really owes about 92K as a payoff… You may get the 2nd to take some form of discount, depending upon who they are; some will, some won’t. It is that simple. You could certainly play the age card here… some will bend over that, some won’t. Some lenders would care less if it was their own Mother in distress…

You have possibilities of offering the Bank a short sale, attempting to buy the note… or structuring a forebearance agreement, which could add the back payments to the rear of the loan. At least this would help her get caught up, as long as she could afford the current payments, which is doubtful it seems. You could stucture a catch-up deal, then take the property subj to, to save her from fc…

Wish you luck on it…


Second is foreclosing-Ideas or advice please… - Posted by Maria (FL*)

Posted by Maria (FL*) on September 10, 2003 at 22:06:08:

Hi everyone. An older lady(fixed income) called me today wanting me to buy her duplex which is in foreclosure.She lives in one side.Apparently the ladies son talked her into taking out mortgages on the home which she owned free and clear. First for 24,000 the second which is a home equity loan is now around 60,000. The second is foreclosing. Sadly the son has been using the home equity line to the tune of 60,000 without moms ok. And hasnt made a payment on it since Jan. Both mom and son are on deed but he doesnt live there.Other side is rented to two older disabled sisters for $500 a month.
Fmv 90-95,0000
Rent 500.00 ea unit
Around 84,000 owed
Back payment for 9 months.
Can I do anything to help this lady out? She was so sad and really doesnt want to lose the house in foreclosure.She said she looked into bk but it cost so much and she wasnt comfortable with doing it.

With the second foreclosing what happens to the FIRST?
If I could buy it I would hold it for a few years and rent it.It is in pretty good shape.
Any and all ideas really appreciated.Anything I can tell her to help her (or me) is great. I meet with her tomorrow afternoon.
Thanks so much. Maria

She needs income, which means … - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on September 11, 2003 at 01:40:00:


She has to get money coming in to make the mortgage payments. That means she has to get out the non-paying son and replace him with somebody who will pay. She has to take control of the property. She has to make things happen the way she wants.

There is no equity in the property. If the interest rates are low, you might have a small positive cash flow.

Good InvestingRon Starr*