All Forum Posts by: Daniel E.

Thank you for the response.

To clarify, borrower is in an active chapter 7. We have obtained relief from stay. Their intention was to “renegotiate the mortgage” however never responded to any attempts to talk. 

What have you seen get approved? 

In this case, the borrower can only afford $500/month total. 

Could the judge tell me I get $100/month and the rest goes to delinquent taxes for the foreseeable future? 

My $450-500 number would be re-writing the debt to the chapter 7 FMV at 5% for 30 years. Seems fair to me and a $30k discount on arrears.

Still, in any event, someone needs to put down $2,500 to get on a tax payment plan.

Borrower has now requested mediation. What should I expect with this?

We have long been proponents of renegotiating the mortgage. But the delinquent property taxes are too high.

Borrower's take-home pay is ~ $1,500 - $2,000 / month. Her Chapter 7 lists monthly expenses (prior to mortgage) of $1,300.

As a reminder, property taxes are $12,000 past due. Best plan they will offer is $2,500 down and the remainder over 24 months ($400/mo). 

So, the way I see it, the lowest possible payment of JUST taxes and insurance is $550 - $600 / month. There is just no room for the mortgage payment. I need at least $450 of P&I on a performer for us to make the deal work. 

Anyways........how do these typically end up?

@Chris Seveney

@Chad U.

@Brett Goldsmith

To clarify, this borrower has already filed chapter 7 and we been granted relief from stay.

The foreclosure is in 'REM'. Does this really change how they can defend? My understanding is they can only argue assignment chain / prove ability to foreclose (there is not argument here).

@Chris Seveney

@Adam Adams

Thank you for the responses. 

They did not pay the taxes for the 10 year period as well. Prior to my foreclosure, the county treasurer was directly taking the asset to foreclosure (running the foreclosure themselves - not just taking to a tax sale), however, held off for us to run the foreclosure process. They effectively did not know it was that delinquent until I spoke with them (for better or worse).

Is there any flaw in this logic as a back-stop:

if I drop the case and the taxes move forward with their foreclosure, I will receive any overage at the sheriff sale.

Wow I hope this isn't the case. How are you supposed to price in a multi-year foreclosure battle that ends with the judge drawing up a mod?

Of note the attorney is a community legal aid. The borrower has no means and, like mentioned, taxes will foreclose asap if this is cancelled.

@Chris Seveney 

Would love if you have any thoughts! 

At approximately 1 week before foreclosure judgment, borrower entered a 30 day extension to answer complaint. 

My question is, what is the typical route here? My guess is that 90% of the time this is just a stalling tactic, but would like to hear the experience of others.

Facts:

Ohio

Property worth $100k

UPB: $60k

Payoff: $99k

Borrower discharged from Chapter 7

Borrower can afford $400/month, but property taxes are delinquent $12,000. They want to be paid over max 24 months. They were starting their foreclosure, but I asked them to hold off.

Last paid date of December 2009. We are okay based on the statue of limitations laws in Ohio.

Debt has been sold multiple times, but all paperwork is in line, including original note and mortgage.

Borrower has refused a $10,000 cash for keys offer.

I was very surprised that they want to contest. Property taxes will foreclose anyways.

What should I expect? Any advice is greatly appreciated.

@chris seveney

I know that typically this is under the market section, but it is fairly specific to sub/non-performing notes so wanted to ask here.

Anyone have a good recommendation for a CPA that knows how to handle a note purchase, subsequent foreclosure, renovation, and sale?

If not, looks like this will be my weekend reading:

https://www.law.cornell.edu/cfr/text/26/1.595-1

Anyone know what happened to FCI Exchange? Although most of the notes were over-priced, daily watchers could come across some opportunities.

Running my first flip project out of state. Unfortunately, the contractors did a poor job overall, and we have slowly made repairs. Some little stuff (painting ceilings) and some larger (re-doing all basement drywall). Overall, our basis is still okay (this was a non-performing note we took through foreclosure).

Home has been on market for 45 days. Anyone have a strategy to get more attention? Should I consider pulling it off the market for a week, then re-listing? Dropping a few $100 and adding comments to the MLS that all repairs are complete? Or just wait it out?

I did a price reduction after the first week (following feedback that price was too high but not knowing the extent of the needed repairs (a door was even broken off the hinges!). I think the price is fair now (given all of the repairs) so really want to avoid another price reduction.

Any advice is greatly appreciated. 

@Chad U.

@Chris Seveney

@Derek kirkwood

Greatly appreciate the responses. I probably echo you, why share the secret sauce (unless there was a big enough market). 

However, these guys (https://revivalbros.com/ipa/ ) are light-years ahead on the design side, so I will just move on. Thank you!