Seller behind on payments

5 Replies

A seller told me he hasnt paid for 9 months.

His payments are 850. That would be 7,650, But what about penalties, taxes, attorneys, etc etc. How can I know exactly how much I’d have to pay in order to get the seller out of foreclosure?

@Fili Aguirre you don't need to get them out of foreclosure. Write a contract, take to title company and have their attorney call and tell mortgage company you have a contract and get to hold foreclosure so you can close.

"I am not a lawyer and this is not legal advice." Just what I would do.

@Fili Aguirre you could also have the seller request, or give you written authorization to request, a mortgage pay-off statement from his lender.  That should tell you the principal, interest and penalties due as of a certain date.  While that is in the works do some research at the Registrar of Deeds to find unpaid property taxes.  While you are at it check for any mechanic's liens or unpaid utility bills that could travel with the property.

Assuming you are trying to purchase it, If you get them under contract to sell, the agent can try to appeal to the foreclosure department to put the foreclosure on hold in order to close the deal. Give them something substantive like a fully executed purchase agreement and proof of funds to close. You would only need to make that request if you are within a short sale period. If you are financing the transaction, you are going to need time. If you are paying cash, you don't need to do anything to close it except, get it closed, quickly. 

No title company is going to have their attorney call any lender to put a foreclosure on hold, and no lender has any duty to hold a foreclosure sale date that has been scheduled. That said, if there is a mod in process (alternative to foreclosure, which could include a short sale but not a full sale), and a complete package is submitted, lender has to hold any action for 30 days. Again, this assumes the OP is trying to purchase. That isn't clear in the post.

As Donald pointed out, get the seller to get a reinstatement figure or, get under contract and have the title company issue a demand request. Has to be completed in seven days. If the sale is scheduled already, you have little to no time. If not, you have time.

If you are trying to help them out, well, again, as Donald pointed out, have the owner get the reinstatement figures.

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