Investor · Council Grove, KS · Member since 2014 · 94 posts · 31 votes
I have spoken with a homeowner that is just wanting out of their house payment. She has told me that she just wants what she owes on property, but she can't tell me what that is because she is under contract with a realtor. She says that if it doesn't sell in a couple weeks, she will just let it go back to the bank.
My question. Is there a way to find out what is owed on the mortgage?
And will the realtor tell me that number if I ask?
Interesting that the owner feels they're under an obligation not to disclose such. As I always say, when someone says no, ask them why. Perhaps there is language in listing agreement that prohibits this or perhaps the seller just thinks she's prohibited from disclosing it.
Explain to the owner that letting the bank foreclose is often the beginning of a long painful journey which will impact their life for years to come.
Most cities will have a register of deeds office where you can look up recording instruments like a mortgage. Many counties have these search features available on-line. A visit in person and a quick chat with a clerk could help you locate the mortgage document too.
Interesting that the owner feels they're under an obligation not to disclose such. As I always say, when someone says no, ask them why. Perhaps there is language in listing agreement that prohibits this or perhaps the seller just thinks she's prohibited from disclosing it.
Explain to the owner that letting the bank foreclose is often the beginning of a long painful journey which will impact their life for years to come.
Most cities will have a register of deeds office where you can look up recording instruments like a mortgage. Many counties have these search features available on-line. A visit in person and a quick chat with a clerk could help you locate the mortgage document too.
This will tell me the mortgage, but will it tell me the balance due?
I agree with Guy Gimenez ....unless there is specific language in the listing agreement stating she is unable to discuss specifics with any potential buyer she should be able to provide you with figures...or at a minimum ballpark numbers. I'd contact her again and, as Guy stated, ask her why she feels she is unable to disclose that info. Also, it may be worth asking her hypothetically, if she must sell what would be her bottom dollar price she could accept with a realtor involved to prevent a foreclosure.
There are a couple of options available. 1. You would can have the owner call the bank and get the payoff or give you permission to talk to the bank. 2. You can talk to the realtor and see what happen. The clock is ticking down. You really to talk to the bank. They will sometime take a lesser amount than is owed because a good portion is attorney's fees and late payment fees.
Most cities will have a register of deeds office where you can look up recording instruments like a mortgage. Many counties have these search features available on-line. A visit in person and a quick chat with a clerk could help you locate the mortgage document too.
This will tell me the mortgage, but will it tell me the balance due?
You can just do the math to back into the balance owed. The note will have an origination date with the interest and terms. Use an amortization calculator (or in excel) to figure out how much principal would have amortized since inception.
@Account Closed If she refi'd the house would the register of deeds have that info? I know that this family has had this property long enough to have paid it off a couple times. And, this is why I am befuddled as to why she would let it go back to the bank.
Keep in mind that there are other things to consider.
Are there any junior liens?
Are there outstanding taxes due?
How much would it take to pay the arrears?
Are there clouds on the title?
There may be a lot more to worry about than just the unpaid balance (UPB). Now, that being said, don't let that discourage you. Just make bloody certain that you do your homework. Provided the property in Morris County, start here Morris County. In fact it's usually a good idea to make sure the seller is the owner of record. The county is where the deeds are recorded, so start there.
To the issue of the offer, you could waste a lot of time trying to figure out the UPB. Perhaps you could get creative and make your offer based on the remaining balance on the mortgage plus the realtor and other closing expenses, since the seller won't be able to pay those expenses under the circumstances. Alternatively, you could make an offer to the bank to buy their non-performing note, then offer the seller deed-in-lieu. Everybody's happy in this case, except the realtor who's liable to get ticked off, so you might offer something for his time and trouble.
You got your hands on the tail of the golden tiger. Make sure there are no surprises, then get creative. If there are some nasty surprises in this deal, let go off the tiger's tail.