pre-foreclosure loan reinstatement problem - Posted by Joe C. (AR)

Posted by luke-NC on September 03, 2004 at 05:27:00:

maybe file bk?

pre-foreclosure loan reinstatement problem - Posted by Joe C. (AR)

Posted by Joe C. (AR) on September 02, 2004 at 23:16:55:

I have a contract to purchase a preforclosure home. I want to reinstate the loan to buy some time to refinance. I’m well protected, have a title search and a deed. I have a power of attorney from sellers to deal with trustee and mortgage company “on thier behalf”.

I’m having trouble getting a reinstatement figure from trustee. Our State law indicates that the borrower has a right to reinstate by by paying arrearages and fees.

Trustee and/or mortgage co. seem to be playing games by not providing the correct amount and time is running out before the sale. What can I do? Any ideas?
Joe C. (AR)

Thanks to those who tried to help… - Posted by Joe C. (AR)

Posted by Joe C. (AR) on September 04, 2004 at 24:03:43:

Problem was solved today when foreclosure trustee (attorney) finally released the info to me today and accepted the reinstatement funds.

To address some your answers:

  1. BK was an option but neither the seller nor I wanted to consider it. Joe K’s course talks about a BK scenario involving a corporation (so no personal BK), that would have stalled the sale, but not for long. That was a posibility, and I may set a shell corp for any future re-occurrance.

  2. Although I tried approaching the mortgage co. directly, they would only refer me to the trustee (foreclosure attorney) for info. Trustee kept saying that the mortgage co. had to furnish them with the info, but had not done so yet.

  3. I should have realized that the terminology might be different, in my question I mentioned a power of attorney I have from the seller. This poa has language that authorizes the release of info in this matter.

  4. Again a terminology thing, the trustee I refered to is the foreclosure attorney who advertised the sale.

Thanks for your responses. I appreciate your willingness to help. Thankfully the situation resolved itself. Beware of similar tactics used by lenders and attorneys when doing your own deals, you never know. For my own experience, I’m not sure now if it was intentional on their part, incompetent help, or just plain lack of interest. For my part, I called the trustee’s office every half hour this morning asking for the info. I also mentioned that if the sale were not postponed after our documented efforts to fully reinstate, that I would get the state attorney general’s office and the banking commission involved.
Joe C. (AR)

Re: pre-foreclosure loan reinstatement problem - Posted by Bill H

Posted by Bill H on September 03, 2004 at 18:22:57:


The problem I see is twofold…1 you are not the borrower and 2 you have not given anyone an “Authorization to Release Information” from the borrower.

Do not think a power of attorney will do any good in the privacy of information area until you get the authroization to release the information into the hands of the lender.

Good Luk,
Bill H

Re: pre-foreclosure loan reinstatement problem - Posted by kwack41

Posted by kwack41 on September 03, 2004 at 16:28:07:

You need to call the attorney that is listed on the foreclosure advertisement. They have the most up to date numbers because they are adding all their fees on.

good luck

Re: pre-foreclosure loan reinstatement problem - Posted by Clair-MO

Posted by Clair-MO on September 03, 2004 at 07:27:30:

Joe, Do you know the lender who gave the loan? Go directly to the lender and find out what arrearages(sp)of what is owed. Doesn’t owner know exactly what is owed?