Help Needed With A Foreclosure Purchase
My husband and I have been living on a property with a lease with the option to purchase, since 8/02. We are in the process of trying to purchase it and just received a letter from the owner that they are in foreclosure. They haven't made a payment since 2/03. We recieved a trustees notice to sell at auction 10/15/03. Total due is $114,000. Property is minimal value '78 MH on 7 acres. Property was appraised at $130K spring '02.
We are really just wanting to get the property purchased. But would like to get it for as cheap as possible. Due to the condition of the home. I am wondering if there is a way to short sale this property? How would I go about getting this property bought?
I would appreciate any help and insight you all would have.
Thank you!! Amy [ Edited by alc28 on Date 07/06/2003 ]
hmmmm...You could try a short sale, might work since it's a MH and the bank probaly knows those don't sell too quickly.
-or- if you're not actually trying to live there you could buy and refinance and then lease option it out for slightly above the appraised value to someone else (usually about 10% over appraised value would be good) with a non-refundable deposit. That would make some income.
You could try the short sale first and the lease option thing second if the short sale doesn't work.
I can't think of anymore...By the way, that's really lame that the person you were leasing from wasn't making the payments. Does anyone know how to protect youself from this? Does Amy have any recourse to get something back from the owner???
We are trying to live there. It does have potential. There is a property of the same size less than 1/2 a mile from this property. The people built a new home and are now selling it for $395K. So we do want to purchase it for our primary residence and then remove the old mobile.
I would also like to know if we do have any recourse towards the people we were leasing from?!? <IMG SRC="images/forum/smilies/icon_confused.gif">
Thanks for your input!
Amy[ Edited by alc28 on Date 07/06/2003 ]
I think you should try the short sale then.
Make yourself a little mess in the house and take pictures for the bank. I'm sure you can find something ugly or gross about the house. Any rusty stuff? Something, anything?
Also, I'd get out the lease form you have from the seller and see what it says about the recourse...
DOES ANYONE HAVE ANY ADVICE ABOUT THIS LADY'S RECOURSE?????
You can get a permission letter from the owners to contact their lender.Have the owners give you contact information and their account number. The wait is very, very long, so don't give up. When you reach the correct person tell them what you want to do and ask if the lender would be willing to give a discount. They don't want a foreclosure on their records either. Offer 70-75%LTV and see if they will take it. Good luck. Keep us posted.[ Edited by SKHunter on Date 07/03/2003 ]
What is their loan balance including late payments, fees etc... vs your option price?
I would contact an attorney Monday in the am and set up an escrow for your payments. Do not give any more money to the owners, and do not default on what you signed. If the balance of the defaulted loan is less than your option price, I would start trying to refinance and cash the owners out. If it is more, then there is a serious problem that will have to be straightened out using the legal system. Mind you, what I just gave was an opinion and as such is not to be construed as legal advise in any way shape or form.
Good Luck,
Shawn(OH)
The seller's loan balance is $114,000 and accumulating late charges as we speak! Our Option price is $113,000. the seller sent our payment for July back with her letter of foreclosure. I am going to get her to give a letter of authorization. I do think I want to try a short sale due to the condition of the home and the homes surrounding our property. I think we could pull it off. Just not sure how to execute it.
Thanks for your input. I would appreciate any advice anyone has.
Have a great 4th! Amy <IMG SRC="images/forum/smilies/icon_rolleyes.gif"> [ Edited by alc28 on Date 07/06/2003 ]
Let's do it the easy simple way. Draw a deed to the property consideration $10 love and kisses. Have them sign and have it notarized. Record Deed. Contact the mortgage holder and offer to reinstate loan for a corrected lesser amount. (remove all delinq charges and costs). Now if that works you are where you want to be. Own the property, same mortgage on it. Away you go. Cheers Lucius. If mortgage co. non cooperative. Bring the loan current and refinance. If necessary file a simple restraint of sale action. This gives you time to refinance. Oh yes if your old landlord wants to know what you are doing is attempting to save their credit by curing the foreclosure. Cheers Lucius.
Wouldn't putting myself on their deed make me part of their mess? I could go down with them if the mrtgage co. doesn't allow me to bring the loan current?
Ouch, I hope this works out for you. The goofy thing is if I read this right is it's a mobile. Mobiles are personal property and not real property. That could work out for you also because possession is 9/10ths of the law.
A short sale maybe possible but a lender needs a COMPELLING reason to give you a short. The previous person on the laon is supposed to demonstrate they don't have the ability to pay the loan and that they want you to take over the property. Attempts buy the borrow to sell the property is usually a must by producing a listing agreement. If the lender goes for it I know of investors who offer 50% of the value as a starting point of negotiations. That sounds absurd but why pay anymore than you have to.
They are not easy but they do happen.
Maybe you could get a free half hour with a local attorney.
All the best,
traveler
The owner did have it on the real estate market for awhile, but were unable to get rid of it. That is when we stepped in with the lease option to purchase. Perhaps that would help the short sale cause?
how is your credit overall?
couldn't you show the back your records www.i.e. a history of paid checks to the landlord as an example of your ability to pay them for the short sale negotiation?
We had a ch. 7 discharge in 1/02. But have not paid anything late before or after the BK. I could show on-time pmnt. to the landlord to the bank. I am not sure how that would help the short-sale case?
[quote]
On 2003-07-08 11:05, ddhamilt wrote:
http://www.i.e.
I can't get that website to work? Could you look in my profile and email it to me? What is it about?
thanks, Amy
alc:
in terms of your recourse against the landlord, you might be able to sue him for breach of contract (i.e. the lease) but quite frankly it probably won't be worth pursuing. If they are so strapped that they can't make the mortgage payment with the money they collect in rent, chances are a money judgment against them won't do you any good. Paper will hold whatever you put on it; collecting your money would be an entirely different matter.
Quote:
On 2003-07-06 17:58, alc28 wrote:
Wouldn't putting myself on their deed make me part of their mess? I could go down with them if the mrtgage co. doesn't allow me to bring the loan current? <IMG SRC="images/forum/smilies/icon_eek.gif">
What Lufos suggested is not "putting your self on their deed (with them)", but having the owner DEED THE PROPERTY OVER TO YOU (this is known as Sub2, "subject to" the existing mortgage). You bring the loan current and begin making payments. The current owner stays on the LOAN, but not on the DEED. The mortgage company just wants the loan to be current- they don't care who is making the payments. You don't need to tell them you now own the property. You get the house, the owner doesn't get a foreclosure on their credit. The only sticky thing may e if the owner has filed for bankruptcy....