At The Sale With A Cashiers Check For The Arrears
I have had a few lazy moment in my life and some were not from just being lazy.
I missed 2 house payments a few years ago and i got a certified letter in the mail from my mortgage company stating it was a "notice of intent to accelerate" calling the note due.
obvously this was the first step to foreclosing. of course i sent them a check and that was the end of it. nothing else said
So my question is this:
if you are working pre foreclosures and you are going to try to take the property sub2, is it really that simple that all you have to do is bring up the arrears? obviously people are further behind than a couple of payments, and have gotten many more notices that my little one.
if you were to do a last minute deal and you were to show up to the sale with a cashiers check for the arrears and hand it to the trustee do they have to reinstate the loan? or could the trustee say "sorry, that $ 5,726.18 wont due we want ALL $93,326.47"
Any experience with this? please no guessing.
[addsig]
In Colorado,non-judicial foreclosure, the day of the sale means you are dealing with the public trustee not the foreclosing lender. The public trustee only has the power to sell your property. They can only accept a cashiers check for the full amount of the loan in question with fees, presenting them with a check of the back payments would do nothing.
The lender who is foreclosing (more specifically their attorney) would be who has the power to continue, or withdraw the foreclosure.
Okay say its not at the sale. say you make a deal with the new owner. they move out. your land Trust sends in the arrears (as you all recomend). Will the note get reinstated or do you need to be prepaired for the arrear money to not be accepted and guess what, gotta ask the cat for a loan!!
[addsig]
It really is easier if we know where you are from WheelerDealer. In Texas, Bexar County, I have given the total payoff to a trustee just before the sale. This is a very scarry situation. I have talked with people on the courthouse steps who gave the trustee the total arrearage(late pmts, atty fees, late fees, etc.). It happens.
When I gave the atty the money, I did show him that I had in fact purchased the property. I showed the contract, the deed that had been recorded and asked him to give me the exact amount that needed to be paid. I also let him know that the office that he worked for had not given me the figure even after two weeks of calling and faxing a release of information authorization from the seller.
We have non-judicial foreclosures every 1st Tuesday of the month with only a 21 day notice and no redemption period.
No redemption period yes, that is why i ask. when it is sale day in Texas it is "D-DAY"
Travis co.
Does the county matter? I mean if you are working a pre fls deal does where you live make a difference?
Are you always hopping that the loan will reinstate, playing a guessing game, or can there be more to rely on?
_________________
B.G. & Wheeler D. LLc Inc.
(A division of: Half Vast Enterprises)
[ Edited by WheelerDealer on Date 12/12/2003 ]
You have until the day and time of the sale to make a payment. That means literally if the sale is at 10am, you have until that time to make the payment for the arrears. It usually says so in the notice of foreclosure.
I have seen owners praying that they find the right trustee in time before the sale. The funny thing is that you will usually see the same person again in a few months looking desparately for the trustee one more time.
Foreclosure laws and customs may differ from state to state, and even county to county.
In many states, the Plaintiff/foreclosing mortgagee is under no obligation to accept payments to reinstate the loan.
If it is your strategy to simply show up at the foreclosure sale and seek a quickie deal and reinstatement... I'd suggest that you initiate a dialogue with the mortgagor much earlier on in the process.
I have met the trustee on several occasions onthe way to the courthouse. I got figures from the attorneys office on Monday and made arrangements to meet trustee at Jims here in Oak Hill on his way to the courthouse. He lived in Dripping Springs. Just happened to be the same trustee each time and the same attorney's office with different lender at least ywo times. Need to get this worked out before hand with the lawyers and lender. I owned the properties and it was a little easier but you can do the sub2 deals the same way. Try to get it done a few days before. You can get a Temporary Restraining OrderTRO also if you will be too late. I have not actually had to get a TRO but have heard of other investors doing it.
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr
In florida you better have the mortgagee's permission if you show up at the sale to reinstate because there is a chance the sale will go on and there you sit deed in hand cashier check ready and now you must bid to get your house.
While it does seem you & your friend the trustee do have a workable deal going, just understand the trustee has a fiduciary obligation, legally, to EVERYBODY...and can't really, legally & ethically favor ANYBODY.
The better, most professional trustees know their "on the fence" position and work hard to be absolutely, 100% neutral.
We have a WA St Supreme Ct decision really blasting a "pet/captive" trustee who did, on several occasions, work hard to hide the sale from all but his secret partner, and when caught, got hit hard by a Judgment.
Although I too have paid for & bought off a sale, on the day of the sale, on behalf of a client investor, it's MUCH better and safer to take care of this earlier.
At the Travis county sale this month, there were several people claiming their property before the sale, for both tax lien sale and foreclosure sale.
Texas law does everything possible to help a person keep their home. However, I wouldn't want to cut it that close if I were an investor. Best to allow a day or two.
[addsig]
Okay then all that being said
can prefls be bought sub2, bringing up the arrears? and if so, and it is not the day of the sale but a few days before, (because of the posts i read that people are in denial till last minute) and you fed ex off the arrears what do you get from the lender proving so? just someones word over the phone? or is there a release of foreclosure form that you can signed? just in case of a mistake you've got something in hand to prove it.
[addsig]