All Forum Posts by: Ron S.

Just hire a bankruptcy attorney that represents creditors. A real estate attorney that does not specialize in bankruptcy law will do nothing but waste your money. You have a repeat multiple filer you are dealing with and a half decent BK attorney knows what to say and what to file. You need relief from stay so you can proceed with your foreclosure. That's all and that's your first priority since you can't talk with the borrower or negotiate with the borrower until then. You can't call a truce, and you can't say or agree to handle this outside of the BK since the property now belongs to the BK trustee and unless/until the trustee abandons it, it's theirs.

THEN, once you get relief, you may have to deal with all of the issues related to being a lender. Since you are now a lender, you may be subject to the same rules that BofA, Chase, HSBC and the other big players out there are subject to and if you screwed up anywhere in the process, you could have a bigger issue on your hands than you wanted. THAT'S when you need a real estate attorney. Did he ask for a loan modification? Did you inform him by the 45th day of delinquency that there may be help available to him in the form of alternatives to foreclosure? Did you document a minimum of three contact efforts by phone or mail by the 36th day of delinquency? Did you send a breach notice to him certified, and in the requisite font type and size on your letter? Did you wait until the 120th day of delinquency before filing the first legal notice?

Maybe you have an exemption from some of the servicer requirements as a "Small Servicer". Maybe you don't. I would let an attorney opine as to which applies. Maybe, once you get relief, you try to settle and do a deed in lieu. Maybe this real estate broker is smart and is counting on you violating some rule you weren't aware of because you are not an institutional investor and is setting you up to get a free house after he sues you and wins. I'd get the BK stuff out of the way, then get your real estate attorney to sit down with you and hammer out a battle plan sooner than later.

just my two cents.

You have to talk numbers first. Is there any value in the home above what the anticipated auction amount is? Is that value at least 20% above the purchase amount to avoid MI on your subsequent permanent financing? Are you in a position to know the condition of the property? Meaning, is it without section 1 repairs being needed (Good roof, mechanicals, health and safety)? Are you financeable (Documented two year work history and good enough credit)? Do you intend on occupying the property and if not, are you able to cover the difference in the requirements of LTV from an institutional lender (20-40% equity position)? Get a "YES" to all of those and then you move on to your scenario.

Are your "Friends" going to sell to you at acquisition cost and if so, how long are they going to allow you to obtain permanent financing? What are you going to do in the interim? pay them interest only? Amortized? Are you going to have that all spelled out in writing beforehand? What if you have something happen to you in the interim and are left with a balloon payment or if the property has issues that you were not aware of subsequent to the purchase? Are you going to cover those costs or leave them holding the bag?

There is nothing wrong or illegal with your proposition. Will it work? That's the bigger question and many "Friends" cease being friends when mixed with business.

Purchasing subject to will put you at risk for another foreclosure as 99.99% of the notes out there have a due on sale clause and yes, the bank will find out if you put your name on title. Even if you don't put your name on title, they'll find out when you take insurance out on the property. Not doing either kind of defeats the purpose of purchasing it with ownership rights and doing either puts you on notice to the lender for the illegal transfer so they can start another foreclosure.

Buy it outright, get a loan to buy it in your name, or move on to the next property would by my two cents.

if it's not banked owned yet, it's borrower owned so yeah, have to go through the borrower if you have the time to do so.

No. At least not without violating Federal privacy laws, or at least not legally. That's an urban legend. No such list.

120 days is the minimum, nationwide. The average, depends on the state.

The only thing wrong with this arrangement is that you don't like it. You can move if you don't like it. I have property with one meter and I pay for the water bill with a bump to their base rent. "Unfair" to you may be "The way it is" to the landlord. It's not like you didn't know this going into the agreement or, did this somehow change after you rented the unit? If it did, that's another story. If you knew this going in and now just don't like it, I would say you are the one that is going to have to adjust as asking the landlord to compensate you after the fact, so that you feel things are fair, isn't....fair.

I'm an "Instant Gratification" kind of guy. I prefer the real time in person experience of bidding at the court house steps. I've inspected the property, I’ve done my due diligence, I’ve prepared my funds and bid what I’m willing to spend. When (if) I win the bid, I take the receipt over to the property and knock on the door to let the occupant know who the owner is. If there is no occupant, I bring a drill and change the locks and post a "No Trespassing" sign with my contact info. Has worked out well so far.

He still owes the debt. He's just not personally liable for it any longer. He owes it in the sense that if he wants to keep the home, he has to pay it.

Walk...anything short of that is inviting a headache.