All Forum Posts by: Ron S.

I'd probably edit this post in case your self help eviction causes him to look for help on line, he finds this forum and your post about the ilegal eviction.

You should go through the appropriate legal eviction process and serve any/all parties that may reside there. I wouldn't risk a self help eviction considering the potential legal ramifications, not to mention a potential 12 Gauge greeting you at the door.

only AFTER the bankruptcy has been discharged.

The trustee has to approve and abandon the property from the estate subject to bankruptcy before any purchase can proceed. You don't obtain the property from Bankruptcy. You obtain it from the owner.

HUD isn't going to help them with "Refinancing". HUD may point them in the direction of a loan modification or other alternative but, it appears from your writing that the only one that stands to benefit from them not short selling is you. You want the house and want a piece of ownership in exchange for being their "Advocate". Not trying to be a jerk here but from reading your post, you have a financial motivation, not a altruistic one. No good deed goes unpunished. You get involved with an elderly person, mix real estate, finance, and legal in the sentence and someone's gonna get screwed.

It can't be "Bank owned" AND just in foreclosure. It's one or the other. Either the bank owns it or, the bank is foreclosing on it and intends to own it (Assuming it doesn't sell at auction).

As far as the short sale scenario is concerned, call the agent it's listed with, make an offer, get your financing in line and prepare to get frustrated with delays and worries.

It never ceases to amaze me the urban legend that exists in the market, that the banks will deal with a buyer directly (singlue unit SFR's, not commercial or bulk sales). While yes, there are those out of reality exceptions, no reputable bank is going to risk the compliance headache of dealing with a potential buyer of an REO property directly. I get calls daily from prospective buyers on my REO properties. I simply refer them to the number on the sign on the front lawn. Then I typically get as a response, "But I figured if I contacted the bank directly, I could cut out the middle man and save us both time and money", and while on the surface that may sound good, any perceived time and money savings is all but gone when I have to spend time and money explaining to my examiners, regulatory agencies, auditors, CRA agencies, Compliance Departments and so many other entities why I sold a home through direct contact and negotiation with a buyer, instead of listing it with an agent and maintaining that "Arms Length" relationship. Why didn't I sell it to a minority? Why didn't I sell it to a non profit? Did I sell it to my friend? Did I sell it to a family member? Did I do something wrong as the REO manager? Did I discount the property to the harm of the bank when I sold it by not getting competing offers or listing it on the open market? All of these and more questions get asked by everyone NOT involved in the sale, and they are asked by people above my pay grade so, myself and most others in my position at other banks avoid losing our jobs or going to jail by listing the properties with agents, and not talking directly with buyers.

Yes, you can deal with the bank directly and no, there are no laws or rules prohibiting it but again, why? The bank isn't going to 99.9999% of the time. Also, as a buyer, you aren't spending any money using an agent. The bank isn't going to discount the property to any great degree any longer as the "REO Stigma" in previous years is gone. The "Barnyard" find like the Beck 550 Porsche Spyder in some old geezer's garage that you found driving through the country and bought for $500 dollars doesn't exist any longer. As I said in the beginning of the post, it's mostly just urban legend now.

Novel concept...ask the owner (Borrower?) what the balance is. If you are not in contact with them, good luck. You aren't going to find out using honest means without approval via 3rd party authorization to get a demand to the junior lienholder....in other words, what Wayne said.

HOA liens survive. Some are capped to a maximum amount (Depends on the state) but they do survive the foreclosure.

Sorry Jerry...doesn't work like that. The trustee isn't going to order anyone to remove anyone from any debt. They don't need to. The debt is already gone and, while its great in theory, people don't "Tender the property to the mortgage holders". As I mentioned, yeah, some people remove themselves from title and mail back the keys. The lender chuckles a little bit when it happens and they proceed with their foreclosure. In the absence of a payoff or a short sale, a foreclosure is the only way you divest yourself of the title issue (and some litigation!).

And...at NO point does the second lien holder have to do anything. "Drop his lien"? Not sure where you heard that but that doesn't happen. The trustee isn't going to do anything for you on this and yes, talk with your bankrupcty attorney, where they will confirm that the above suggestions are not based on how it really works.