Foreclosure, Can They Do This?
I am working a SS and the bank has gone into the property, changed the locks, and done an appraisal. Without the homeowners permission and the house has not been foreclosed on yet.
The homeowner is not living there currently but has personal property in the residence.
I am thinking that this is an infraction of their rights and the bank may be more amenable if apprised of this breach ?
Just curious on this one.
The bank is aware the property is unoccupied and is securing their interest.
We see it all the time. Just carry on with your short sale negotiations.
Good luck.
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I am carrying on, I am just curious that they did that while the owners chattel was in the property.
I have a local investor that claims to have pressured the bank over this in the past to his advantage.
I am doing more than 5 SS a month and am always interested in learning something new.
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I see it all the time on unoccupied, preforeclosure houses. Down here in FL, you ought to see the metal contraption that the put over the swimming pool. It is pretty routine so I would doubt that you could use it to your advantage. Although I did have one lady in an upper end home who was able to get the house sold prior to the auction, and she did get the company to come back out and remove the metal cage that they put over her pool.
Wow! I would love to see one of those cages...
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My title companies standard paper work includes a paper saying that I will come back in and sign if there are any mistakes. If you did not sign that paper then suggest to the title company that their errors and omissions insurance should pay for it.
Assuming that you are operating as a single member LLC which is treated as a disregarded entity for tax purposes I see no problems.
Basically there is no limit to the mortgages one can have on a property. They become 1st 2nd 3rd 4th and so on in the order they are recorded as a lien. However finding a lender that will loan to you with more mortgages is hard because they have to see the equity to give them, even hard money lenders. Also as previously noted in another answer all lending institutions have different rules but mostly you own the house and if you borrow from a different lender that does risky mortgages that is legal. What the government watches for per se is predatory lending where you owe more than the house is worth and lenders foreclose.
I once bought a 5th mortgage note and I know of NO law in any state that limits number of mortgages or loans on a property.
As far as I know there is no actual limit on the # of mortgages, but for tax purposes you can only deduct the interest paid on the first two against your primary residence. You cannot deduct the interest paid beyond the two mortgages. So for tax reasons, it might be in you best interest to go ahead and consolidate down to 2- you would be able to deduct more when you do your 1040.
I recently thought about a third mortgage- briefly - and decided to refinance my existing second (HELOC). Remember on a HELOC they are always variable interest loans, but the good thing is you are not forced to take out a lump sum like with a loan, and only pay on the amount of your credit that is borrowed.
Be sure to ask about a prepayment penalty when paying off your third mortgage though- these can be painful- 6 months interest or more.
Good luck.