help me understand this foreclosure & stalling (agent, listing, sellers) - Real Estate Professionals - City-Data Forum

oh come on! · 03-14-2016, 04:16 PM

I have never dealt with foreclosures before.

I came across this in tax records. see screenshot below.
Guy bought home in 2006 for $1.9m. Home is only worth 2m right now.

He's gotten multiple notices of default over the years, and he's still not hired an agent to just sell the home and be done with this headache.

His original loan amount was $1.5m.

default amount has ballooned to 2.34m.

seems like owner is able to stall foreclosure repeatedly somehow. What's going on?

Would you pursue this as a listing agent?

MikeJaquish · 03-14-2016, 06:45 PM

I want to work with motivated sellers.
People who get to live in the house for free are seldom motivated to sell it.

oh come on! · 03-14-2016, 11:09 PM

would this be a good time to get the owner to do a short sale?

MikeJaquish · 03-15-2016, 02:48 AM

Quote:

Originally Posted by oh come on!

would this be a good time to get the owner to do a short sale?

My opinion is unchanged.
What would be the possible motivation for the owner to engage?
Credit is trashed. Owner is in the house for free. Why entertain giving up free housing for a short sale?

LifeIsGood01 · 03-15-2016, 07:16 AM

Quote:

Originally Posted by MikeJaquish

My opinion is unchanged.
What would be the possible motivation for the owner to engage?
Credit is trashed. Owner is in the house for free. Why entertain giving up free housing for a short sale?

Exactly, every month you live in a place for free is money you can save towards your next place to live.

oh come on! · 03-15-2016, 06:19 PM

Quote:

Originally Posted by MikeJaquish

Owner is in the house for free. Why entertain giving up free housing for a short sale?

ok i get it.

I'm wondering how he's able to get free housing for so long. He's stalled the foreclosure process for 6 years already.
Is it really that easy?
There's gotta be some minimum amount he has to pay to stall the process, so it can't be completely free.

plus he has to pay $25,000 property tax now. Living here ain't cheap

SouthernBelleInUtah · 03-15-2016, 08:23 PM

Oh, he's not paying proprty tax. He's stiffing them, too.

oh come on! · 03-15-2016, 11:33 PM

Quote:

Originally Posted by SouthernBelleInUtah

Oh, he's not paying proprty tax. He's stiffing them, too.

if that were true, now he just seems invincible.
Someone has to be able to kick him out.

I mean, I'd love to live like this if it were that easy to drag this out for 50 years.
50 years of free housing?? I'm in !

WendyK · 03-16-2016, 08:35 AM

are you sure someone is still living in the house? Have you visited it in person?

SmartMoney · 03-19-2016, 10:52 PM

I know of a couple that declared bankruptcy, included the home over 4 years ago. They lived in that home after the BK for almost three years. When they were eligible to buy another home (after 4 years), the property still was vacant and titled in a big box bank name (Bank had not taken possession back). If they (or anyone) were still paying utilities, they could live rent free. They closed on the new home last month. I'm not happy about it, but it was all 100% legal.