Posted by JohnBoy on January 23, 2002 at 15:21:44:
This guy needs another attorney! He needs one that is well versed in real estate.
WHY would he file BK over taxes owed that his lender screwed up on???
If his taxes and insurance were included with the loan payments and the lender has failed to pay the taxes then it’s the lender that is going to have problems.
First of all, the tax bill would be sold, then after the cure date the party who purchased the tax certificate could foreclose on the property. If they foreclose the lender’s mortgage would be wiped out in the foreclosure. The lender will have to be properly notified of the foreclosure which gives the lender the chance to pay the tax bill to protect their mortgage secured against the property. Which means if the lender gets notified and this doesn’t fall through any cracks within the mortgage companys involved, the lender WILL pay the tax bill just to protect their interest.
If this did fall through the cracks and the house ended up being foreclosed on because the lender messed up, I would venture to guess the buyer would have grounds for one heck of a lawsuit against the lender!
This guy needs another attorney that knows what they’re doing! The one he has obviously doesn’t have a clue! Sounds as if this attorney is more of a BK attorney that stands to make a fast buck off collecting a fee for filing BK. You gotta watch those clowns! Get another attorney that specializes in real estate law!
Have a potential T/B for a property I’m L/Oing and have a general question. The situation is this:
He says that the mortgage on his current home has been traded by mortgage companies three or four times over the only 3-4 year span he’s had the loan. As it stands now, he says that the taxes he’s been paying escrowed into his loan payments have all dissapeared into thin air, and he has been told that the taxes have not been paid on the property for about 3 years. In any case he owes about 11K in taxes and has almost no equity, and since even his attorney can’t get an aswer to what in heck has happened to this escrowed tax money, his only real out (according to him and his attorney) is to declare banktruptcy.
What I’m wondering, is this guy came to the original seller of a property I’m looking to L/O and inticed them to dealing with him, and because the original sellers are living in Alaska, they want me to be the in between man and just set this up to where he’ll get financing within a year or so, and make a few quick bucks in exchange for piece of mind on their part, knowing the deal is being managed by someone local and someone who has dealt with L/O’s before.
The problem, is that I don’t know how this bankruptcy will affect his chance to get financing in a year or so… He says he’s spoken with a mortgage broker who says that if he declares now he’ll be able to get him financed in right about 12 months. I will be contacting this person shortly to see what he says firsthand, but I’m wondering what others experience has been with bankruptcies in relation to finalizing lease/option deals.
Is there a certain chapter that he might file that would make the situation better or worse? More importantly should he file BEFORE or AFTER signing the L/O agreement with me? Anything else I should look out for? Obviously I’m going to be checking his employment and getting a good idea of what his credit is like from talking with this mortgage broker who pulled his credit and spoke with him just last week, but I’m just curious for more information from those who have dealt with this first hand before.