hello me and my wife are seprating we are in va what are the laws of virginia if we forcluse the house do lenders come after wif or husbund ,any comments
First, thanks for the quick response. Here is some additional information. The lady filed chapter 7 but it has been disharged, does that mean I can deal directly with the bank? Or is there still some outside involvement?
Thanks again
When I said deal with the bank, I simply meant to get the payoff or reinstatement amount.
Is there a chance the bank would negotiate on the payoff? I assume no payments have been made in over a yr so much interest has accrued, might they wave the interest if I bring the loan current or pay off?
Pre-foreclosure means that the house still belongs to the lady. You can not buy her house nor talk about her loan without her permission. I certainly can not call up your mortgage company and ask questions about your loan and I can not buy your house without your permission.
What you could do is buy the note. Ask the bank if they want to sell their note. Of course you need to buy at a discounted rate. Since the house is vacant, there is very little chance that the lady will bring the loan current.
Personally I have never bought a note. I hear is it difficult to do from a large lending institution. I have done quite a few short sells.
What is the FMV (As-Is fair market value) of the house?
You need this woman to sign an sales agreement before you do anything, set the price at the price you want the house for, make the agreement contingent on negotiating this price from the lender. I have owners sign a blank or multiple agreements, this way there is no problem with making multiple offers.
Have her sign a POA, a letter stating that she knows, and understands what you are doing, and she knows you are doing this to make a profit (a CYA letter), then have her sign a deed to you (or entity) do not record the deed! If you record the deed the bank will see you own the property and call the mortgage due (no deal)
You should however record a Memorandium of Agreement signed by her and notorized. This will cloud the title so she cannot sell it to anyone else.
I personally like the owner to give me the deed, the mortgage paper work, and other papers regarding the property (stops other investors from sneeking the back door). I know some will state this is unethical, but if the owner changes their mind I will give them back, especially if they have signed a memorandium.
If she is not on title to the house than all this is moot you need to be dealing with the named on the deed.
You will have to convince the lender your offer is valid, place needs work, (pictures, estimates of repairs from contractors in writing, structural defects, mold, hazardous waste, etc.) seller will have to show they have hardship, payroll stubs, divoruse, low comps.
UPDATE: The mortage company ordered and appraisal. My comps showed the house worth about 178k as is, thinking I was maybe 5 to 10k low(of course). The appraiser said his value came in around 195k. My offer to the bank was about 83% of my projected value. If the bank thinks the house is worth 195 as is and they are currently owed 186, with the sale scheduled for next week, do you think they will counter and what would be a fair price to get this for or what is the min. the bank will most likely take?
Thanks
82% of the BPO is about as low as they will go. You have almost no time. It takes me one week to get someone from the lawyer/lender to call me back or to get someone on the phone. My experience is that will not stop the sell at this late date. They already have spent all their lawyer money to it saves them almost nothing to stop the sell at this late date.
Why not just bid on it and see where it goes? The bank wants more that you want to pay anyway, so go to the sale and see if it goes for less than they want. You never know, it might go for less than you were willing to pay...
Who ever is on the mortgage.
Who is on title and who is on the mortgage may be different. Whoever took out the mortgage is responsible for the repayment of the debt.
First, thanks for the quick response. Here is some additional information. The lady filed chapter 7 but it has been disharged, does that mean I can deal directly with the bank? Or is there still some outside involvement?
Thanks again
When I said deal with the bank, I simply meant to get the payoff or reinstatement amount.
Is there a chance the bank would negotiate on the payoff? I assume no payments have been made in over a yr so much interest has accrued, might they wave the interest if I bring the loan current or pay off?
Yes you can try a shortsale (before the sale). You still need to deal with the homeowner first though to get a POA, etc.
Pre-foreclosure means that the house still belongs to the lady. You can not buy her house nor talk about her loan without her permission. I certainly can not call up your mortgage company and ask questions about your loan and I can not buy your house without your permission.
What you could do is buy the note. Ask the bank if they want to sell their note. Of course you need to buy at a discounted rate. Since the house is vacant, there is very little chance that the lady will bring the loan current.
Personally I have never bought a note. I hear is it difficult to do from a large lending institution. I have done quite a few short sells.
What is the FMV (As-Is fair market value) of the house?
What is the approximate lien amount on the house?
How much is needed in repair?
What is the ARV (after repair value)?
Is the lady willing to sign you over the deed?
How much would you have to pay her for the deed?
If you are going to be taking it subject to, you are going to want to get a POA.
You need this woman to sign an sales agreement before you do anything, set the price at the price you want the house for, make the agreement contingent on negotiating this price from the lender. I have owners sign a blank or multiple agreements, this way there is no problem with making multiple offers.
Have her sign a POA, a letter stating that she knows, and understands what you are doing, and she knows you are doing this to make a profit (a CYA letter), then have her sign a deed to you (or entity) do not record the deed! If you record the deed the bank will see you own the property and call the mortgage due (no deal)
You should however record a Memorandium of Agreement signed by her and notorized. This will cloud the title so she cannot sell it to anyone else.
I personally like the owner to give me the deed, the mortgage paper work, and other papers regarding the property (stops other investors from sneeking the back door). I know some will state this is unethical, but if the owner changes their mind I will give them back, especially if they have signed a memorandium.
If she is not on title to the house than all this is moot you need to be dealing with the named on the deed.
You will have to convince the lender your offer is valid, place needs work, (pictures, estimates of repairs from contractors in writing, structural defects, mold, hazardous waste, etc.) seller will have to show they have hardship, payroll stubs, divoruse, low comps.
UPDATE: The mortage company ordered and appraisal. My comps showed the house worth about 178k as is, thinking I was maybe 5 to 10k low(of course). The appraiser said his value came in around 195k. My offer to the bank was about 83% of my projected value. If the bank thinks the house is worth 195 as is and they are currently owed 186, with the sale scheduled for next week, do you think they will counter and what would be a fair price to get this for or what is the min. the bank will most likely take?
Thanks
82% of the BPO is about as low as they will go. You have almost no time. It takes me one week to get someone from the lawyer/lender to call me back or to get someone on the phone. My experience is that will not stop the sell at this late date. They already have spent all their lawyer money to it saves them almost nothing to stop the sell at this late date.
Why not just bid on it and see where it goes? The bank wants more that you want to pay anyway, so go to the sale and see if it goes for less than they want. You never know, it might go for less than you were willing to pay...
Plus, the foreclosure sale solves the missing husband problem for you.