Hey guys. Have a new situation that I haven't dealt with before. Located a vacant property and also located the owner. Owner walked away many years ago, declared bankruptcy, but loan owners never completed foreclosure as loan constantly resold. He owes, according to lender, much more than worth. Completely dilapidated after 10 years empty. Loan has been sold multiple times. Most of it is unpaid interest, penalties and late fees accumulated over about 8-10 years.
How should I attack this? I was thinking short sale? But would prefer something quicker. Maybe some of you have encountered similar situations
My worry is that it may not be in my best interest to contact lender. Possibly there is a way to get this property without involving them directly, maybe going through the court system or some other back channel? Since they have done the foreclosure it must mean they are missing some important documents concerning the property right?
You have to talk to the lender as the owner is lost in the wind and owe the lender more than the property is worth. Yes if you get it it will likely be a short sale that the lender has to agree to. Your best chance is talking with them and seeing what they'll accept provide them photos if you can as well as comps so they understand how much of a disaster they own.
@Tal Perry Consider these facts. 1. The statute of limitations for mortgage(s) in Florida can be as low as 5 years.
https://www.blankrome.com/publications/florida-supreme-court-holds-statute-limitations-does-not-bar-successive-mortgage That means the existing mortgage is likely uneforecable.
2. Florida allows adverse possession in 7 years -if you have color of title.
http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0000-0099/0095/Sections/0095.18.html That means you could just use the "abandoned" property as though it was yours and eventually acquire title through Adverse Possession.
3. Since you have located the owner of record, prepare a Quit Claim Deed for him to sign, locate a mobile notary, buy the owner a meal and while listening to him over the meal ask him if he'll sign off on the property -then call the mobile Notary to come Notarize his signature right there at the table. Then the property is yours, and you can defend against foreclosure as the owner. You can clear the title immediately, by requesting a release or filing a Quiet Title suit - if the the mortgage is already beyond the statute of limitations.
4. A lot with a derelict home can always be rented. RV owners always need a place to "park". If there is power, water and sewer, the rent can be significant. Rent it out as an RV Storage spot. In my blog, below, if have a post that includes a rental agreement for renting a vacant lot to an RV owner.
5. Craigslist.org always has people willing to put labor into rebuilding a property -if they can live there cheap or free while building. Most county's allow temporary living in an RV, if you have a permit to rebuild, or remodel the house.
@Davido Davido thank you for responding. I didn't consider adverse possession. I need to look into that further.
@Brett Goldsmith how do I find out what type of loan it was?
@Tal Perry The best way is to get authorized with the mortgage servicer and ask them. You also may be able to tell by looking at a mortgage statement.