Foreclosure in Bankruptcy

Comments(3)

• 
  DerrickAli24th May, 2003

  ANita:
  
  Nice to meet you!
  
  Besides being a Channel partner here on TCI I spend my full time dedicated to investing in Pre(PFLs), and Foreclosures and post-Sheriff Sale properties.
  
  To answer your Q.:
  
  What also can be done is to approach the Lenders (NOT their Atty.s) and ask for a Workout inturn for RELEASING the property from the BK.
  
  Of course you'd need permission of the BK Trustee...or if the Owner/Seller chose they could have the BK DISSMISSED completely???
  
  You could then Ask the Owner to:
  
  Place the home into their own Inter-vivos(Living Will) Land Trust to protect the Title
  from Creditors
  Then...the Owner Assigns You a %Beneficial Interest (BI) in the Trust.
  
  In the meantime while all of this is occuring you are also Mktg./ADV. for a Tenant-Buyer to:
  
  - Pay a Down Payment (say 5% of the MAV for the future sales price) to Cover their BUY-In of (%BI) to the Trust; Pay off the arrears and/or the satisfy the pymt due on the NEW Workout plan with the Lender. (And even get you some up front money too.)
  
  - The Tenant-Buyer (TB) is Leasing the Property (Triple-Net)and paying 100% of the current obligations on it.
  
  Also the TB gets an Option to purchase it at a future date. Plus Tax Benefits (I make em pay a little extra for this.)
  
  It is presented and (pre) Sold like a Land Contract and Taking over the existing mortgage loan payments.
  
  The big hurdle is negotiating with the lender and the details surrounding Release by the BK Trusatee or Dismissal of the BK after the Lender say YES to a New Deal!
  
  I hope this helps
  
  
  Derrick Ali

• 
  RESolutions25th May, 2003

  ...thanks Derrick, that is quite a procedure and a very good one! My biggest problem is, I cannot get to the mortg people....I have tried all my tricks getting to them and they just refuse to have any correspondence at all with me, nor the sellers! I do have and Auth. to Release as well...
  
  I do appreciate your reply and will print it and save it for the next time I am in this situation. I am sure it helped others as well! in the meantime I will do an auction sale next weekend with hopes of getting a good buyer with a market value offer!
  Wish me luck!...I'll get paid a fee and the seller will get some equity. I do have a Real Estate Brokers license so my fee will be on the up and up
  
  Thanks again for your help!...I love this forum!!!
  
  Anita

• 
  wallstreetcappers20th June, 2003

  Let me say a thing or to, as I have run into the exact problem that you are dealing with.
  
  First, ask the seller who they are working with at the mortgage company. There is a BK dept at nearly all mortgage companies, that is the person to be speaking with. But you will need a authorization to release info, that will be the first words out of the mouth of the mortgage rep.
  
  The thing is, I would suggest you to get the release from the seller, then start talking to their attorney. The sellers BK attorney is the one who can get you the property released. The bank wants it out too, so they can foreclose, but they cant do it without the ok of the attorney(s).
  
  I would also suggest that you do your homework, know what each step is by asking questions like this and read articles on the subject.
  
  One other thing, if you are not 100% up on putting together a trust, I would not add that to your pile at this point. A trust can be added at any future time. Deal with this issue first, get the property released and deeded to you, that will be enough fun for the next few weeks. A trust is nice, but not neccessary to do this transaction.
  
  People learn how to do things in different ways, I would look around here, see who helps people, how they help, why they help. I know the person that has helped me the most is John Locke, and I am sure others will also agree with me, he is a great help and a wealth of information.