Posted by chris on April 26, 2010 at 11:08:00:
Just to clarify, are you saying due to the bk is it only the banks right to foreclose, not 1099 borrowerfor difference on loss due to abandonment by owner?
bk in relation to ownership - Posted by chris
Posted by chris on April 19, 2010 at 15:12:56:
Home owner (trailer) on land - had a bk chapter 7 in 2006. In his sched D the first mortgage holder on the trailer and land was listed in the bk. He has not made a payment on the place since the bk. He doesn’t live there.
He wants to get it out of his name.
I came into picture…bank has it listed as a charge off - per their conversation and wants a small portion - verbal as of now not in writing to release their claim on the property.
Title insurance on the home still shows the mortgage now with a ton of accumulated interest.
The seller is concerned with being on the hook for taxes from the sale of something that he doesn’t feel he should own. Also, he is willing to sell for nothing or a few bucks so that the state recognizes a sale (less than 100.)
He will do it if he can be sure that the bank won’t come after him later. Bank says balance is 33k, verbally we are considerably less, but until it is in writing, means nothing.
I was going to transfer to land trust then continue to negotiate with the bank. Now seller wants more assurances.
Should I pay for a meeting with an atty or acct. to do a face to face with the guy?
Are banks really chasing 33k in an instance where bk was involved?
ownership - Posted by Nike
Posted by Nike on April 23, 2010 at 07:45:17:
The issue is whether he abandoned or reaffirmed the debt in the bk. If he abandoned the asset then the bank, as a matter of law, cannot pursue the debt–they can only enforce the mortgage. How much do you think the property is worth?
He’s NOT getting off that note - Posted by John Merchant
Posted by John Merchant on April 22, 2010 at 12:21:43:
Quoting you:
“He wants to get it out of his name.The seller is concerned with being on the hook for taxes from the sale of something that he doesn’t feel he should own. Also, he is willing to sell for nothing or a few bucks so that the state recognizes a sale (less than 100.)
He will do it if he can be sure that the bank won’t come after him later.”
You need to know and understand there’s NOTHING he or you or I could do to get him OFF the hook to the bank on its note…repeat, NOTHING!
This is hard to grasp and I see the question repeatedly by folk who just haven’t thought it through.
Here’s best way to remember it: Would YOU or any lender ever loan money to and take a note from ANY borrower on ANY loan that the borrower could then decide to opt out out of, with your having no say in it?
i.e. " Well I know I signed that note but now I’ve decided I’m going to walk and have Stan Stupidity agree to pay for me".
How would this sit with you if you were the lender?
So to make it crystal clear, no there’s nothing anybody can do to get him off the note, short of BK discharge or payment to bank in full.
OR… - Posted by Rick Harmon
Posted by Rick Harmon on April 19, 2010 at 22:08:54:
Buy the bank note for a song, in order to control it, talk to the owner of record about his other assets, and negotiate something interesting from there.
I wouldn’t be so quick to let him off the hook. You can thank him for bringing you to the deal, tho’.
Re: ownership - Posted by chris
Posted by chris on April 23, 2010 at 09:49:01:
Well, I would think it is abandoned as the property hasn’t been lived in since bk and the guy has tried to sell. Nobody wants to pay 33k for it for mortgage balance.
By enforcing mortgage, isn’t that pursuit of the debt? Or due to the bk is it only the banks right to foreclose, not 1099 borrower?
At this point in time the bank is within their rights to take a settlement offer on the mortgage right? The settlement offer being from me as investor not original borrower seeking to keep the property.
Re: ownership - Posted by chris
Posted by chris on April 23, 2010 at 09:43:31:
Bank is owed 33k. Bank is willing to take 10k, back taxes are about 3k. Property needs 7k into it then the value will be 40k. Bank is not giving any value to the mobile home only the land.
ownership - Posted by Nike
Posted by Nike on April 24, 2010 at 07:59:51:
Assuming the property was abandoned in the bk the lender cannot enforce the note they can only enforce the mortgage (foreclose). Have you confirmed whether there’re other secured creditors (IRS, judgments etc.)? Yes- the bank has the right to accept less to release their mortgage.