Timeline from foreclosure to possession

18 Replies

Working through a foreclosure in Cincinnati OH. Awarded property in November. Borrower determined to stay in home. Mad at the world which now includes me. Wouldn't/couldn't take a 50% forbearance deal. 2 prior bankruptcies. filed CFPB complaint, claimed unlawful court action. On and on. Sorry to whine. Just showing how it can go sometimes.

So, short story longer, we're getting possession on 7/30 unless he's got some other way to delay the sheriff. 

Just putting it out there. How long does it take YOU to recover a property in Ohio? What could I do to make it quicker? Tried DIL, new mod, moving assistance. Borrower was working from moral high ground and wouldn't negotiate. 

That's lame. I don't really buy notes in Ohio so I can't advise on the timeline, but don't beat yourself up too much. Some people just can't be reasoned with and only thing you can do is keep pushing through legal.

I have some that are like that. Ignore state mediation, ignore us for over a year, then convince the judge we didn't give them a fair chance at redeeming. Crap like that is difficult to avoid.

"Borrower was working from moral high ground and wouldn't negotiate."

I almost laughed out loud at this part. The moral high ground would be actually making the payments that he agreed to make and signed his name to when he took out the loan. 

Hi Steve, we have two properties in foreclosure in Ohio, one in Cleveland and one Columbus. Due to state level consumer protection regulations these foreclosures have been in the judicial system now for nearly 18 months. We are now finally at the stage of petitioning the court for a judgement which may take another 2 to 3 months then the auction has to be scheduled. 

I think the tactics you describe has been fine and just par for the course. It sounds like you have an irrational and reluctant borrower and we'll just have to deal with it at eviction. That's unfortunate, but that is the risk we take when we buy the stress that at a steep discount.

Originally posted by @Bob Malecki :

Hi Steve, we have two properties in foreclosure in Ohio, one in Cleveland and one Columbus. Due to state level consumer protection regulations these foreclosures have been in the judicial system now for nearly 18 months. We are now finally at the stage of petitioning the court for a judgement which may take another 2 to 3 months then the auction has to be scheduled. 

I think the tactics you describe has been fine and just par for the course. It sounds like you have an irrational and reluctant borrower and we'll just have to deal with it at eviction. That's unfortunate, but that is the risk we take when we buy the stress that at a steep discount.

Bob I buy at courthouse steps In that state the sale is just the beginning it can take another 2 months plus to then confirm the sale and then if you have a holdover its the full blown eviction process.

I only bid now on vacant homes 99% of the time.. unless the deal allows for massive damage on the way out or other things that mitigate this..   

Originally posted by @Steve Hodgdon :

Working through a foreclosure in Cincinnati OH. Awarded property in November. Borrower determined to stay in home. Mad at the world which now includes me. Wouldn't/couldn't take a 50% forbearance deal. 2 prior bankruptcies. filed CFPB complaint, claimed unlawful court action. On and on. Sorry to whine. Just showing how it can go sometimes.

So, short story longer, we're getting possession on 7/30 unless he's got some other way to delay the sheriff. 

Just putting it out there. How long does it take YOU to recover a property in Ohio? What could I do to make it quicker? Tried DIL, new mod, moving assistance. Borrower was working from moral high ground and wouldn't negotiate. 

Hey Steve, good to hear from you again. I have one in Cleveland right now that's in the same category, but it's the HOA leading the foreclosure at this point as a cross-defendent. I bought this in November 2017 as well, it went to foreclosure in April but some idiot bought it not realizing it was subject to the first (our lien). Well now he's trying to vacate the sale, and the Sheriff dismissed it and is holding him contempt for not following through on the purchase. This has delayed at least another 3-4 months. All the while the borrower continues to live for free!

The fund I bought this from started the process in 2012, and this guy has thrown everything under the kitchen sink at this, with 3 BK's, work injury claim, non-compliance, overturning magistrate's decision, etc, etc.  As @Bob Malecki states above, that's why we buy these at such discounts to ride out these storms.  

Here's the post I made about it:  https://biggerpockets.com/forums/41/topics/552542-...

Originally posted by @Chad U. :
Originally posted by @Steve Hodgdon:

Working through a foreclosure in Cincinnati OH. Awarded property in November. Borrower determined to stay in home. Mad at the world which now includes me. Wouldn't/couldn't take a 50% forbearance deal. 2 prior bankruptcies. filed CFPB complaint, claimed unlawful court action. On and on. Sorry to whine. Just showing how it can go sometimes.

So, short story longer, we're getting possession on 7/30 unless he's got some other way to delay the sheriff. 

Just putting it out there. How long does it take YOU to recover a property in Ohio? What could I do to make it quicker? Tried DIL, new mod, moving assistance. Borrower was working from moral high ground and wouldn't negotiate. 

Hey Steve, good to hear from you again. I have one in Cleveland right now that's in the same category, but it's the HOA leading the foreclosure at this point as a cross-defendent. I bought this in November 2017 as well, it went to foreclosure in April but some idiot bought it not realizing it was subject to the first (our lien). Well now he's trying to vacate the sale, and the Sheriff dismissed it and is holding him contempt for not following through on the purchase. This has delayed at least another 3-4 months. All the while the borrower continues to live for free!

The fund I bought this from started the process in 2012, and this guy has thrown everything under the kitchen sink at this, with 3 BK's, work injury claim, non-compliance, overturning magistrate's decision, etc, etc.  As @Bob Malecki states above, that's why we buy these at such discounts to ride out these storms.  

Here's the post I made about it:  https://biggerpockets.com/forums/41/topics/552542-...

Boy you guys have way more patience than I would have LOL.. I don't know who thought up the concept that buying NPN was passive LOL or even remotely so.. I guess some will be lay downs and other will be like this a decade long drama.

If your buying in bulk I get that.. one like this is would just throw away and walk from the money as it would not be worth my time.

what I cringe is when I see all these folks who have never bought ONE note in their life think Hey I am going to buy NPN :) Not really comprehending how Owner occs will fight to stay in their homes.. its a reality.

Originally posted by @Jay Hinrichs :
Originally posted by @Chad Urbshott:
Originally posted by @Steve Hodgdon:

Working through a foreclosure in Cincinnati OH. Awarded property in November. Borrower determined to stay in home. Mad at the world which now includes me. Wouldn't/couldn't take a 50% forbearance deal. 2 prior bankruptcies. filed CFPB complaint, claimed unlawful court action. On and on. Sorry to whine. Just showing how it can go sometimes.

So, short story longer, we're getting possession on 7/30 unless he's got some other way to delay the sheriff. 

Just putting it out there. How long does it take YOU to recover a property in Ohio? What could I do to make it quicker? Tried DIL, new mod, moving assistance. Borrower was working from moral high ground and wouldn't negotiate. 

Hey Steve, good to hear from you again. I have one in Cleveland right now that's in the same category, but it's the HOA leading the foreclosure at this point as a cross-defendent. I bought this in November 2017 as well, it went to foreclosure in April but some idiot bought it not realizing it was subject to the first (our lien). Well now he's trying to vacate the sale, and the Sheriff dismissed it and is holding him contempt for not following through on the purchase. This has delayed at least another 3-4 months. All the while the borrower continues to live for free!

The fund I bought this from started the process in 2012, and this guy has thrown everything under the kitchen sink at this, with 3 BK's, work injury claim, non-compliance, overturning magistrate's decision, etc, etc.  As @Bob Malecki states above, that's why we buy these at such discounts to ride out these storms.  

Here's the post I made about it:  https://biggerpockets.com/forums/41/topics/552542-...

Boy you guys have way more patience than I would have LOL.. I don't know who thought up the concept that buying NPN was passive LOL or even remotely so.. I guess some will be lay downs and other will be like this a decade long drama.

If your buying in bulk I get that.. one like this is would just throw away and walk from the money as it would not be worth my time.

what I cringe is when I see all these folks who have never bought ONE note in their life think Hey I am going to buy NPN :) Not really comprehending how Owner occs will fight to stay in their homes.. its a reality.

It's one extreme to the other Jay. On another deal, I JUST got a call from my servicer to say that one of our borrowers who's recently gone into default is moving out and wanting a cash for keys deal. We only bought this in April at ~40% the property value, and already have a buyer lined up (longer story). The ROI should be close to 100% in about 4-5 months if all pans out. It's ones like these that keep you in the biz, as they average out the dogs like the one above.

Originally posted by @Jay Hinrichs :
Originally posted by @Chad Urbshott:
Originally posted by @Steve Hodgdon:

Working through a foreclosure in Cincinnati OH. Awarded property in November. Borrower determined to stay in home. Mad at the world which now includes me. Wouldn't/couldn't take a 50% forbearance deal. 2 prior bankruptcies. filed CFPB complaint, claimed unlawful court action. On and on. Sorry to whine. Just showing how it can go sometimes.

So, short story longer, we're getting possession on 7/30 unless he's got some other way to delay the sheriff. 

Just putting it out there. How long does it take YOU to recover a property in Ohio? What could I do to make it quicker? Tried DIL, new mod, moving assistance. Borrower was working from moral high ground and wouldn't negotiate. 

Hey Steve, good to hear from you again. I have one in Cleveland right now that's in the same category, but it's the HOA leading the foreclosure at this point as a cross-defendent. I bought this in November 2017 as well, it went to foreclosure in April but some idiot bought it not realizing it was subject to the first (our lien). Well now he's trying to vacate the sale, and the Sheriff dismissed it and is holding him contempt for not following through on the purchase. This has delayed at least another 3-4 months. All the while the borrower continues to live for free!

The fund I bought this from started the process in 2012, and this guy has thrown everything under the kitchen sink at this, with 3 BK's, work injury claim, non-compliance, overturning magistrate's decision, etc, etc.  As @Bob Malecki states above, that's why we buy these at such discounts to ride out these storms.  

Here's the post I made about it:  https://biggerpockets.com/forums/41/topics/552542-...

Boy you guys have way more patience than I would have LOL.. I don't know who thought up the concept that buying NPN was passive LOL or even remotely so.. I guess some will be lay downs and other will be like this a decade long drama.

If your buying in bulk I get that.. one like this is would just throw away and walk from the money as it would not be worth my time.

what I cringe is when I see all these folks who have never bought ONE note in their life think Hey I am going to buy NPN :) Not really comprehending how Owner occs will fight to stay in their homes.. its a reality.

BTW, love the Hero's Home cause!!!!  Just made a donation......

Ohio is tough and as you get closer to cleveland the jurisdictions will also throw as much at you. I almost think that the moment they see a foreclosure be filed they send someone by the property to write up violations.

Originally posted by @Chad U. :
Originally posted by @Jay Hinrichs:
Originally posted by @Chad Urbshott:
Originally posted by @Steve Hodgdon:

Working through a foreclosure in Cincinnati OH. Awarded property in November. Borrower determined to stay in home. Mad at the world which now includes me. Wouldn't/couldn't take a 50% forbearance deal. 2 prior bankruptcies. filed CFPB complaint, claimed unlawful court action. On and on. Sorry to whine. Just showing how it can go sometimes.

So, short story longer, we're getting possession on 7/30 unless he's got some other way to delay the sheriff. 

Just putting it out there. How long does it take YOU to recover a property in Ohio? What could I do to make it quicker? Tried DIL, new mod, moving assistance. Borrower was working from moral high ground and wouldn't negotiate. 

Hey Steve, good to hear from you again. I have one in Cleveland right now that's in the same category, but it's the HOA leading the foreclosure at this point as a cross-defendent. I bought this in November 2017 as well, it went to foreclosure in April but some idiot bought it not realizing it was subject to the first (our lien). Well now he's trying to vacate the sale, and the Sheriff dismissed it and is holding him contempt for not following through on the purchase. This has delayed at least another 3-4 months. All the while the borrower continues to live for free!

The fund I bought this from started the process in 2012, and this guy has thrown everything under the kitchen sink at this, with 3 BK's, work injury claim, non-compliance, overturning magistrate's decision, etc, etc.  As @Bob Malecki states above, that's why we buy these at such discounts to ride out these storms.  

Here's the post I made about it:  https://biggerpockets.com/forums/41/topics/552542-...

Boy you guys have way more patience than I would have LOL.. I don't know who thought up the concept that buying NPN was passive LOL or even remotely so.. I guess some will be lay downs and other will be like this a decade long drama.

If your buying in bulk I get that.. one like this is would just throw away and walk from the money as it would not be worth my time.

what I cringe is when I see all these folks who have never bought ONE note in their life think Hey I am going to buy NPN :) Not really comprehending how Owner occs will fight to stay in their homes.. its a reality.

BTW, love the Hero's Home cause!!!!  Just made a donation......

 I saw that Chad thank u so much deeply appreciated 

Originally posted by @Steve Hodgdon :
@Jay Hinrichs was trying to go down the Heroes Home path. completely uncooperative. shame. he could have had the place at a decent discount. 20 years in possession!

you mean you bought a NPN and you were going to just deed this guy or gal the home free and clear ?? I have done that a time or two as well.. long story but you know you do this long enough and all sorts of scenarios play out.

Originally posted by @Steve Hodgdon :
@Jay Hinrichs was trying to go down the Heroes Home path. completely uncooperative. shame. he could have had the place at a decent discount. 20 years in possession!

 Well Steve, you can lead a horse to water..............but he may just crap in the well!

Originally posted by @Jay Hinrichs :
Originally posted by @Steve Hodgdon:
@Jay Hinrichs was trying to go down the Heroes Home path. completely uncooperative. shame. he could have had the place at a decent discount. 20 years in possession!

you mean you bought a NPN and you were going to just deed this guy or gal the home free and clear ?? I have done that a time or two as well.. long story but you know you do this long enough and all sorts of scenarios play out.

 Hi Jay, no i couldnt have eaten the $75k i paid. In good faith I paid an $8500 emergency home repair. With arrears he was at $168k. I tried to work off my net but he wouldn't have it.

Originally posted by @Bob Malecki :
Originally posted by @Steve Hodgdon:
@Jay Hinrichs was trying to go down the Heroes Home path. completely uncooperative. shame. he could have had the place at a decent discount. 20 years in possession!

 Well Steve, you can lead a horse to water..............but he may just crap in the well!

Bob I have been meaning to ask you this question.. 

I got contacted on a property in Clark Co Washington  ( Vancouver)  they were going to lose it to tax sale  in about 10 days.. But the guy tells me he had not paid in forever and one day the lender just wrote in a letter and mailed him his recon deed and said the mortgage had been satisfied.. this guy did not pay it off he had not paid on it for 5  to 7 years..  of course before I ponied up the money to rescue the tax's I just thought never heard this one before in our market..   Long story short I open escrow with WFG next day they had a pre lim for me and sure enough that mortgage was no longer on there and it was only the back tax's  .. in Wa you cant transfer title without paying back tax's and excise..  So any way I got this house on one acre for the back taxs.. it was a mess of course as it had been abandoned all those years.. But we still sold it to a flipper for over 100k.. taxs were 12k..  that was a strange one.. and had this guy not called me he was just going to let it go  !!  you ever see a mortgage do that ? 

Originally posted by @Steve Hodgdon :
Originally posted by @Jay Hinrichs:
Originally posted by @Steve Hodgdon:
@Jay Hinrichs was trying to go down the Heroes Home path. completely uncooperative. shame. he could have had the place at a decent discount. 20 years in possession!

you mean you bought a NPN and you were going to just deed this guy or gal the home free and clear ?? I have done that a time or two as well.. long story but you know you do this long enough and all sorts of scenarios play out.

 Hi Jay, no i couldnt have eaten the $75k i paid. In good faith I paid an $8500 emergency home repair. With arrears he was at $168k. I tried to work off my net but he wouldn't have it.

OK got it.. you were just trying to do a mod with him of some sorts which in your mind was a smoking deal but the borrower would not engage..   yes been there done that a time or two.. :) 

Thanks to all who commented or just read. Posted to show that even if "you know what you're doing" the homeowner still can be in control. I'm OK with that. Stealing people's houses out from under them is not what we're here for. 

Specific update for amusement. Gerner and Kearns is handling this loan through FCI. They asked to extend borrower move out to 7/30 to accommodate borrower. After years of "accommodating". I said OK given who we're dealing with. 

I checked with Sheriff this morning. Lockout is scheduled for today. They will advise G&K tomorrow. Wouldn't take instruction from me. Looking forward to the next email from G&K :)

Lesson here for me is, again, manage your loans. These big attorney firms are big because they handle FNMA, FHA, Chase, BofA, etc. We get lost in the volume. Speaking up may not get you better service, but it does make me feel better.