Need Help In Georgia
Step-son holds warranty deed to house in nice neighborhood valued at $140k and made payments from 1996 until 1998 and is currently 73 months behind on payments. He did make one payment in May of 2000 for his payment due in Feb 1998.
Step-mom owns a company holding a 1st & 2nd mortgate on the home. The balance on the mortgages is $70K and total backpayments are $50k (plus pentalties) making the paper worth $120K. I have verbally offered to buy the mortgages for $60K and they want to work it out.
I had a preliminary meeting with my attorney today and the following was discussed:
Unknown - title search.
Unknown - property taxes due.
Unknown - step-son was never declared in default by step-mom; does this constitute acceptance?
Unknown - last payment due date on 1st mortgage.
Known - last payment due date on 2nd mortgate was 2/1/04. Are backpayments still legally due and payable?
Unknown - clouds on title.
Unknown - maximum allowable penalty to apply to each back payment so that the total amount due can be calculated.
Unknown - starting foreclosure bid price.
Known - 14 days notice to call note due.
Known - 30 days notice to foreclose.
Known - 4 weeks notice in newspaper to foreclose.
Known - foreclosure auctions are once a month. Timing could cause another 30 days to pass before the auction.
My attorney advises that I offer to replace my good note for the existing bad note and push for the foreclosure.
If step-son comes up with the backpayments - great, I'll take it and closewith step-mom.
If he let's it foreclose - great, I'll sell it. But step-mom wants cash now, asap. I'm not willing to give cash until I know what step-son is going to do. If I try to defer the cash 30 days or so, I may loose the deal to someone in the family who decides to play my cards.
Estranged step-brother is currently shutting down mom's (step-mom's)company and needs cash fast. This is who I am dealing with and he wants something in writing tomorrow and is willing to sign with contingencies related to the above.
I'll take any advice anyone can offer; this is one heck of a first deal foe me. I'll be meeting with my attorney again tomorrow morning and step-brother tomorrow afternoon.
Thanks to all who can assist.
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