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And as far as short sales and banks go, its all true. Very hard to get approval. We're attempting to buy a house in Orange County Ca., but its probably not gonna happen. Our 3rd attempt.
The banks would rather foreclose. Greed. Pure and simple.
when banks foreclose, especially in these markets, they are losing money. so how is that greed?
I call BULL.The bank doesn't need permission for you to sell. If the amount of money to change hands was enough to pay off the mortgage, get a payoff amount, take the money, pay it off, and deed the property to the buyer.
I have never seen a mortgage with a early payoff refusal note. What does the bank care what you are going to do with the property after they have been paid off.
So, if you have an offer, and the offer pays the property in full, you get your attorney to write up the contract, accept the payoff amount, take it to the bank, pay off the property, get the deed, and sign it over to the new owner.
Done deal.
unless, he was trying to sell the property for much much less
btw, I found it funny that 2 people with "bee" in their names are debating with each other.
And as far as short sales and banks go, its all true. Very hard to get approval. We're attempting to buy a house in Orange County Ca., but its probably not gonna happen. Our 3rd attempt.
The banks would rather foreclose. Greed. Pure and simple.
They would rather foreclose - so it get's bought back by federal government. Then you can sweep in (lucky you) - have a credit score of minimum of 580
buy it with minimal down - and have closing costs paid for you to start
the whole bogus GSE government involved housing industry con
all over again.
The gist that a get from your story is that the Bush/Obama intrusions into the market created a perverse incentive for the banks to prefer foreclosure as opposed to their normal behavior of avoiding them.
This is why many of us were and are opposed to bailouts you're just kicking the can down the road but the lemmings like free stuff and politicos need to be reelected.
Quote:
Originally Posted by forest beekeeper
I am being foreclosed upon.
We bought a 'Multi-Family-Residence' [a single building with multiple apartments] in an area near to a Navy base where we knew that I would likely be stationed many times.
We planned on the rental income helping us to carry the mortgage payments.
For us this plan worked very well for 19 years.
During that period of time, two casinos were built within a 6 mile radius, and both of them were in competition to become the 'World's Largest Casino' [Foxwoods and Mohegan Sun/Moon]. This caused the local economy to change over a period of years, such that these two big employers became the primary focus of all the local economy. They imported new employees, and there was a housing boom.
When the economy collapsed, the casinos went through a series of huge lay-offs. With the layoffs people left the area, apartments were left empty, there became a housing surplus. My tenants lost their jobs. I lost rental income, and after 19 years I was no longer able to carry the mortgage.
I put the property up for sale. Our realtor found three willing buyers, who would each pay off the loan. I did not price it to make any profit. I only wanted to get out, get a buyer to pay my outstanding principle and take it so I could wash my hands of it.
All of this was submitted to the bank. They could choose which buyer could buy the property.
The bank refused to allow us to sell.
There was Obama-money to be had, the bank wanted to follow-through with a foreclosure so they could get the property to qualify for bail-out money. Instead of simply taking the cash from selling the property.
Apparently the bank thought they could get more money via the bail-out than simply the outstanding principle.
After a month of arguing with the bank, I signed a quit-claim deed and gave the property to the bank.
The bank's lawyers refused to accept the deed in that fashion.
The bank started a foreclosure, plus their lawyers filed a law-suit suing me for the principle, PLUS the deed, PLUS $10k in legal fees.
The bank wants to double their money.
The bank was calling me daily, wanting one set of forms filled out; then another set of forms.
It came out that the bank had messed up their paperwork, and could not process this property in the proper manner required to get the bail-out money.
So instead of the bank getting just the principle they were counting on doubling that figure. Since their paper mess-up lost them the ability to double the principle, they want to sue me for it.
I filed bankruptcy.
Now after my bankruptcy has been finalized, the bank still calls me to pester me, every time I refer them to my lawyer.
The bank still sends me letters. They have refused to acknowledge my bankruptcy. I divert all of their letters to my lawyer.
I have not contested their foreclosure. I gave them the deed to the property. It has been 18 months and they are still after me.
The bank has still not been able to finalize on their foreclosure. They are still in court over it.
I did buy property that had a mortgage payment more than my salary could afford. Now I am retired, so my income is even less.
Nobody predicted the economy collapse, I am at fault as much as everyone else is.
For 19 years I was able to carry that mortgage by using rental income and it worked.
I am not mad at that bank because I am not able to carry the mortgage any longer.
I am mad at that bank, for refusing to accept a buyer. They refused to take cash in exchange for their lien.
I am mad at that bank for refusing to acknowledge my bankruptcy.
I am mad that at bank for suing me in their attempt to double their money.
I am mad that at bank for continuing to pester me now.
They would rather foreclose - so it get's bought back by federal government. Then you can sweep in (lucky you) - have a credit score of minimum of 580
buy it with minimal down - and have closing costs paid for you to start
the whole bogus GSE government involved housing industry con
all over again.
unless, he was trying to sell the property for much much less
btw, I found it funny that 2 people with "bee" in their names are debating with each other.
He stated that he
Quote:
I put the property up for sale. Our realtor found three willing buyers, who would each pay off the loan.
That means the balance owed.
Get a payoff amount, get the money, pay off the balance, deed the property to the new owner, done deal.
(I have a friend who is an attorney, I thought the bankruptcy thing was out of line, I sent him a copy of the original message, HE's the one who told me to state BULL, and I outlined his reasoning).
If the amount to be paid is the amount owed, unless the mortgage has a early payoff denial clause, something he has never seen, and neither have I, the bank cannot refuse the money.
That happens too. Although rentals have become quite the competitive market.
If you were one of the unfortunate - the one
who bought/had properties pre 2002 that didn't sell at "Hi, how high are you willing to pay before 2006" - one is now sandwiched between all the foreclosures and abandoned.....
Would I continue to pay on a mortgage in that circumstance - No.
Who would I blame - certainly not the homeowner. Business is business.
Ask any bank
If the amount to be paid is the amount owed, unless the mortgage has a early payoff denial clause, something he has never seen, and neither have I, the bank cannot refuse the money.
There were many sub prime/bank mortgages that had early payoff penalties of 5 percent and beyond for the mortgage balance due - at payoff
if done in a 5 -7 year period of origination of original mortgage...
Get a payoff amount, get the money, pay off the balance, deed the property to the new owner, done deal.
(I have a friend who is an attorney, I thought the bankruptcy thing was out of line, I sent him a copy of the original message, HE's the one who told me to state BULL, and I outlined his reasoning).
If the amount to be paid is the amount owed, unless the mortgage has a early payoff denial clause, something he has never seen, and neither have I, the bank cannot refuse the money.
yeah, balance owed. Say the property has a current market value of $500k. But he has a loan balance of $300k. Does the bank really want to let it go for $200k less?
There were many sub prime that had early payoff penalties of 5 percent of balance due, beyond just mortgage payoff.
we have an early payoff clause on our bank of america mortgage and they will not let us get rid of it without paying $7500 penalty
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