unfair banking or just unethical-HELP - Posted by maybe not so wise

import · September 2, 2006, 9:26pm

Posted by River City on September 03, 2006 at 15:42:48:

I have to agree with Jimmy on this one. There were a lot of past due notices sent to this homeowner. If it were so important, the homeowner should have acted quicker. The homeowner did not care when s/he was not making payments and still owned the home. State and federal laws determine how and when lenders foreclose on homes. The reason the bank will not deal now is probably because the homeowner would not deal with the bank when it was necessary to save the home. Now that the bank is doing everything it said it was going to do, the bank is in the wrong? NOT!

import · September 2, 2006, 9:26pm

Posted by maybe not so wise on September 02, 2006 at 21:26:47:

Two spec homes are being refied. Bank files foreclosure. Mortgage lender calls bank and says "Please pull these from the steps, refi is approved and should be closed in 48 hours. Banker says "no, and by the way, the builders brother is on the board of directors and I suspect he plans to buy these from the steps.

Lender asks what interest payments on construction loan are due. Banker says “no interst” is due. Lender "then why are they in foreclosure.

Bottom line: is it unfair banking practice for this banker to refuse to stop the foreclosure or is it simply unethical. Can it be stopped for reasonable time for refi to be complete.

import · September 3, 2006, 8:16am

Stop Whining: Bank is RIGHT - Posted by Jimmy

Posted by Jimmy on September 03, 2006 at 08:16:00:

this foreclosure did not happen overnight. The bank sent demands for payment, and then a notice of acceleration, and then a notice of sale, and then filed it at the courthouse, and now intends to follow though with the sale.

This is Tough Toenails for the borrower. Too Bad and So Sad.

but the bank is doing everything by the book.

There in an important lesson here. Take care of your business, and don’t cry when when another party exercises its rights to your detriment.

import · September 5, 2006, 3:05am

Even if you’re right, you’re too late. - Posted by John Merchant

Posted by John Merchant on September 05, 2006 at 03:05:53:

I’ve seen lots of foreclosures in several states, go to sale, even though there were legal irregularities.

In order to stop such irreg. or illegal sales, it’s necessary to file an injunction suit, and that suit isn’t effective unless an immediate Restraining Order is applied for…and that can’t be done without a sizeable Cash Bond being posted to pay court costs and attorneys fees if the applicant loses.

So one can’t wait to deal with the foreclosing party (bank, whatever) until the notice has been posted, or it’s too late.

import · September 3, 2006, 9:16am

Re: Stop Whining: Bank is RIGHT - Posted by maybe nott so wise

Posted by maybe nott so wise on September 03, 2006 at 09:16:36:

Stop judging. They did not send multiple demands. they told the refi lender no fee was due. Just prior to that phone call the bank called and said bring in x amount of money and I might pull this from the steps.

There is more to the story. Sounds like you havnt’t had enough crap in your life so it is very easy to be criticle. Thanks for responding.

import · September 5, 2006, 7:48pm

Thank you and update - Posted by maybe not so wise

Posted by maybe not so wise on September 05, 2006 at 19:48:45:

Interesting day today. My attorney contacted the bank and their attorney and advised them of the seriousness of the situation. Lo and behold the bank pulled from the steps. Didn’t want an audit or other repercussions. The date on the certified letter helped pursuade.

Just goes to show…we never know but if we beleive we are right…Persist!

P.S. Got a signed contract for purchase today. Who would have guessed. They close in 30 days.

Thanks to all who responded, Special thanks to you John.

import · September 3, 2006, 9:26am

You’re Still Whining - Posted by Jimmy

Posted by Jimmy on September 03, 2006 at 09:26:28:

if the bank did not do this by the book (which I seriously doubt), than you can stop the foreclosure. Talk to an attorney.

But you want us to feel your pain as a victim of the big bad bank. You got your self in a jam. A mortgage is a contract. You defaulted. That’s a breach of the contract. YOU LOSE. Stop crying.

that’s how business works.

and I suspect I have endured as much, if not, more crap in my life, than you. but unlike you, I don’t point the finger at others. TAKE RESPONSIBILITY FOR YOUR FAILURE TO LIVE UP TO YOUR MORTGAGE OBLIGATIONS.

import · September 5, 2006, 8:54pm

Pays to speak up - Posted by John Merchant

Posted by John Merchant on September 05, 2006 at 20:54:39:

Good for you & your lawyer for pulling this off…never know what you can do until you try.

I’ve had a similar situation occur in last few days where I’ve seen a sudden softening of the other side:

I’m trying to buy a little multiplex (4 plex now, but read on) in a small WA city, but the City Planning Dept has been threatening the Seller with all kinds of horrible things if he doesn’t “convert back to the legally permitted SFR”…although the 4plex was such long before he bought it*, and may have predated the City’s zoning for SFR and therefore be a “pre-existing, non-conforming” but legal use of the property. Grandfathered, you see?

Seems the little house has been an operating 4 plex for many, many years, to the consternation of the City because of its minority tenants’ propensity for fighting in the middle of the night, having too many people, too much tequila, too many cars, too much police activity, etc., etc.

And when I started this deal this was all seemingly a big surprise to the S (yeah, right!).

Well the S is of the same race as his tenants, and those folk seem to be a racial majority now in the little town so as I was mulling over my seemingly few options, I had a little (big for me) brainstorm.

I found out the name & fax number of the City Attorney and I sent him a letter asking him to mediate this squabble so we could try to get by with no lawsuit involving the City. But allowing me to buy the little house and continue operating as a 4 plex.

And I mentioned in my fax letter to the lawyer that I certainly would not (nice guy that I am ;)think of suing the City, BUT since the S was a member of the racial minority/majority and that if his racial support group got wind of this deal they might gleefully jump in to file a suit for him against the City and probably make it a big, big deal, class action type, etc., etc.

Well seems those were really inspired words because just a couple of days ago I got a call from the Community Relations Director in that little City who wants to have a group sit-down meeting to see if we can’t settle this peacefully…and he got a call from the City lawyer referencing my comment about how the City might like to avoid such a lawsuit.

So I’d always recommend such an effort seeing what you’ve just pulled off and my own little efforts seemingly being noticed.

*this little house has 4 elec. meters, 4 outside doors,4 kitchens, 4 baths, etc…it really is a 4 plex albeit one of the smallest you can imagine…the little house can’t be more than 2200’. But a real cash-cow (vaca de oro, I suppose that would be ;)as the thing grosses about $1400 per month.

import · September 3, 2006, 9:44am

Re: still judging - read and resond - Posted by maybe nott so wise

Posted by maybe nott so wise on September 03, 2006 at 09:44:26:

anyone who has done short sales or preforeclosure buying knows that banks take these off the steps all the time. I have bought dozens.

I am not the borrower, I am the friend of the borrower. I have power of attorney and I am dealing with the bank I know both the borrower and the mortgage lender. I asked a simple question for those in the know.

import · September 10, 2006, 7:05pm

Re: Pays to speak up - Posted by wising up

Posted by wising up on September 10, 2006 at 19:05:30:

Conratulations on your 4 plex. I have seen alot of things in the last year that are not, legal yet o.k.d by judges, the amazing practices of small town government(reminds me of Barney Fife putting the town drunk in a cell and letting him be the judge of when he got out) and many other things. It is enought to make a person go hmmmm.

import · September 3, 2006, 2:14pm

Boo Hoo - Posted by Jimmy

Posted by Jimmy on September 03, 2006 at 14:14:52:

If your friend is looking for a shoulder to cry on, have him call his mommy.

let’s make this real simple:

your friend took out a loan.
that loan had terms describing the rights and responsibilities of both parties.

3… your friend breached the agreement, which triggered certain rights and powers for the bank.

the bank exercised those powers.
your friend had a contractually defined period of time to cure the default, and get back in compliance.
your friend failed to do so.
the bank accelerated the loan.
your friend is apparently unable to come up wth the whole enchilada in time to stop the foreclosure sale.
the bank owes your friend no favors. the bank owes your friend exactly what the contract says. and if your friend is one dollar short of one day late, he is boofed. Welcome to the real world.

Am I missing something?