The question was how to stop the foreclosure and turn this deal into a single sale transaction to avoid more taxes. How does turning over a check to an escrow agent speed things up, yes escrow can be opened for the transaction but getting the trustee sale stopped was the main concern and by curing that situation in a timely manner it would solve the problem. Time was running short and for an escrow agent to open escrow and send a check to the lender, and to the right department, etc and have them stop the sale in time is a risk I wouldn’t take. If I were the poster I would have shown up with a cashiers check and handed it directly to the right party and gotten a reciept.
And in my opinion being a Realtor for a short time does little to impress me. I was a Realtor, not an associate, for 40 years and met a ton of dummies with several years under their belt, you know the type, one years experience, if lucky. repeated multiple times.
Posted by Kevin - WA on April 18, 2006 at 14:21:59:
Hi,
I have a deal, scheduled to be auctioned in a week. I am not asking for a short sale, plan to pay the loan in full. The bank is saying that they will not stop the sale without an “unconditional approval” from my lender. I still need time to get title, appraisal - no underwriter will give unconditional approval without these.
I could make up the arrearage, but if I do that then I will be out money and if the deal goes sideways…
I could take it Sub2 and make up the arrearage, but then I have to pay excise on that extra “sale.”
Posted by Joe Kaiser on April 19, 2006 at 03:24:27:
In the real world, the lender will be obligated to stop the sale if they
are unable to provide you with payoff or reinstatement figures.
Advise them in writing, by fax, that you are ready, willing and able to
reinstate and request those numbers. They likely will be unable to
provide them to you and will have no choice but to continue the sale
for at least a week.
This is not for kids. You have to have your ducks in a row to play
things this loose, but that’s reality.
We recently prevailed in a WA State appellate matter on this very
subject. We requested payoffs, they said it would take at least two
weeks and instead, sold the property at auction a week later. Very
wrong and very dumb and very expensive, ultimately, having to pay us
for the total value of our loss, some $60K+.
What’s wrong with writing up a purchae contract and making your down payment for the amount due the lender, and having the check made out to the lender and submitted by you? Can be done in hours, you can then get your financing and it is a single sale.
Posted by Natalie-VA on April 18, 2006 at 17:23:22:
Kevin,
Find a local lender and settlement agent who will get it closed in a week. The holdup with the lender is usually getting the appraisal done. Offer him extra money for a rush job. Do the same for the title people. If you don’t already have relationships, it might not be doable, but it’s worth a try.
What does that mean? Being a REALTOR® for three years and having orginated mortages for four, and been a state licensed real estate instructor for one, and I’m still a newbie?
I do admit I don’t know everything, but I think I’ve got some idea of what’s going on.
My thought is that a deposit should be held by an escrow agent and not by the buyer or the bank.
Maybe that’s too conventional for some, but if there is a deposit what’s wrong with the protection of a escrow agent?
I’ll assume your a newbie, the deposit can be anything and go anyplace you want it to. For protection you would want your payment backed by a performance deed of trust where I live, or a clause that states it will survive the contract and the seller will refund the deposit via a note and deed of trust within 10 days of they fail to complete the deal for any reason, maybe even include a penalty amount. Always check with a real estate attorney for your area.