I Need Help Really Bad....

mrlowrey profile photo

I bought some investment property and this isn't for me. I can't afford to keep up the note on the property and so now its going into foreclosure if I can't catch up the notes on it. I have a choice of either having a foreclosure on my credit or a bankruptcy. I dont know the difference but I am really frustrated because I just got my credit together after dealing with 5 years of identity theft. I just want to sell the house and wash my hands of this situation. Whats the best route to take. :-o

Comments(24)

  • mattfish118th October, 2004

    Call your mortgage bank and tell them your situation - ask them if they would be willing to work with you so that you don't have to go into foreclosure...

    Seek out an investor on this website, in the paper, call we buy houses signs... These people will take this stress off your hands...

    I would take this off your hands but I only work in NJ and PA...

    Good Luck!
    [addsig]

  • mralex8th October, 2004

    Quote:
    On 2004-10-08 08:15, mrlowrey wrote:
    I bought some investment property and this isn't for me. I can't afford to keep up the note on the property and so now its going into foreclosure if I can't catch up the notes on it. I have a choice of either having a foreclosure on my credit or a bankruptcy. I dont know the difference but I am really frustrated because I just got my credit together after dealing with 5 years of identity theft. I just want to sell the house and wash my hands of this situation. Whats the best route to take. :-o


    Move from MI,high rate of Fr's and DOL's

  • tinadej8th October, 2004

    What does Fr and DOL mean?

  • mjernigan12th November, 2004

    If you don't have equity, you can Lease it with Option to purchase. Use the option fee to catch up with your payments.

  • quinn12th November, 2004

    Where is your property located? is it in a decent neighborhood? If so, you have option open to you. As stated above, you can lease option the property, or do a LC and get a down to pay your back amount.

    quinjn

  • mrlowrey15th November, 2004

    Thanks for the reply. The home is located in the plymouth & meyer area. The neighborhood is 50/50 right now. Where you have a lot of people rebuilding on their homes but the neighborhood still needs a little bit of time to be a great neighborhood. And how do I do a lease option and catch up on my back payments.

  • mrlowrey15th November, 2004

    What is an LC to get down my back amount?

  • quinn15th November, 2004

    A LC is a Land Contract. Either lease option or Land contract can give you enough money to catch up on your back payments if you're late on payments. Basically, what you're doing is selling your property on contract. You get a precentage upfront and monthly payments and in a year or so, you get a balloon payment which cashes you out and your buyer takes possession of the property.

    Hope this helps
    quinn

  • mrlowrey16th November, 2004

    Thanks a lot I really appreciate it this really helps. I'm starting to get a understanding now. Just a shot would you be interested in LC the home.
    :-?

  • panici18th November, 2004

    Are you still interested in saving this? Contact me, if interested.

  • mrlowrey19th November, 2004

    Yes I am interested in saving my credit. I would keep the home also but I would wind up selling it also. But whatever way I can catch up on the notes and save my rating is fine by me so yes I am interested.

  • tinman17559th November, 2004

    Yes you can refinance if you own the property. The kind of refinancing will depend on your personal situation. You need to call a knowledgeable person and give them the scenario. As you don't sound to sure of anything. Iwould not give out your Social security number until you talk to someone that really knows financing. The more you have it pulled the ledss someone will be able to help you

    Lori
    [addsig]

  • commercialking9th November, 2004

    Let me see if I understand the situation. Mr. A was being foreclosed. You made up his late payments and got him out of foreclosure but made him quit-claim the house over to you. Mr. A still lives in the house.

    Your agreement was that Mr. A would pay you back the money you put up to make up the late payments (presumably with interest) and you would, at that time, do what? QC back to him? Continue to own the house? This is where I am fuzzy about how this deal was supposed to work.

    Now you'd like to refinance the house and get your money back. But what do you plan to do with Mr. A? Somehow your loan needs to get paid. If Mr. A hasn't paid his past two lenders (the guy who was foreclosing and yourself) why do you think he will pay this new loan?

    Perhaps your question is not how YOU can refinance the house but how Mr. A can.

    Please clarify.

  • tinman175510th November, 2004

    [quote]
    On 2004-11-10 00:17, saroz wrote:
    This is the way it was suppose to work commercial King.
    1 I pay late charges 2 planing on getting married. 3 But Mr A was still going to pay back money. 4 QC was for protection in case things didn't work out. 5 Things didn't work out.and I need to move on. 6Mr A is paying the mort on time now, he has to live somewhere. 7 I want to refin to get my money back, if and when he is able to purchase the property I will sell him the property back. He can live in the house,and pay the mortgage. If he doesn't pay the mort he will have to move out and I will move in. He was having fin trouble back then.and lose job. I hope this clears things up some.
    Whatcan I do about this situation. I don"t want him to refin I would have to sign back the QC and I probably wouldn't get my money back. See he knows he can trust me put I found out I can't trust him.

    I have 3 questions.

    1- Can Mr A refin with his present mort company and remove my name from deed.?
    2 - I don't thing his mortgage co know that he QC property over to someone else. Woudn't they check before they refinance?

    3- question - Do I have to wait 1 year to refinance because mortgage holder was in forclosure and there isn't one year of mortgage being paid on time?

    Could someone please answer these 2 questions and then give other comment if you like. Thanks.


    Question #2
    His mortgage company would definately find out he is not on title. They will check title for a couple of reasons: to see if there are any judgements and to check on taxes if he doesn't escrow. All mtg companies get some kind of title work done during a refifnace. Some just more extensive than others.

    Question #3
    That will depend on how strong your credit is. If the mtg is not in your name you may have to write a LOX. Other lenders may want a VOM.

    Lori
    [addsig]

  • saroz16th November, 2004

    Could someone please tell me what a LOX and VOM stand for? :-?

  • commercialking16th November, 2004

    Quote:1- Can Mr A refin with his present mort company and remove my name from deed.?
    2 - I don't thing his mortgage co know that he QC property over to someone else. Woudn't they check before they refinance?

    3- question - Do I have to wait 1 year to refinance because mortgage holder was in forclosure and there isn't one year of mortgage being paid on time?


    1. No, if your quit claim is properly recorded with the count then the ex boyfriend no longer owns the property. He cannot refinance because he is no longer in title.

    2. Yes, before they will refinance they will check the title.

    3. Hmm, this one is a little more complicated. I'd look about for a different lender.

    I think what I would advise you here is to sell the house back to the ex boyfriend. How much is the house worth? How much does he owe you? How much is the balance on the first mortgage?

  • bellybean17th November, 2004

    Here is my input from the "A Deal is a Deal" perspective......

    You lent some guy money. You were smart to get the deed to his house. He was supposed to pay you back. He hasn't. He should've borrowed money from his mom, dad, gramma, brother, etc. so he could pay you back like he promised. He hasn't. What you need to do now is stop being personal about this and take the Donald Trump attitude of - "it's just business". Write the loser a letter explaining that you want to be paid in full within 30 days. Explain in the letter that this deadline is not negotiable and you will not accept partial, incremental payments. You want to be paid in full. If he does not pay you in full, then on day 31 you go and record the deed in your name and pay the fees involved. You'll want to call a title company first and order a preliminary title search ( less than $100 ) to see if there are any other mortgages, back taxes, current taxes and/or judgments or liens on the property. You'll need to know the total owed on the property. Then you'll want to talk to the predominant realtor in that area to get an idea of the home's market value. I've never heard of a 12 month period of ontime payments related to the previous owner of a property as a condition for financing. The home is in your name and the mortgage is in someone elses name and on someone elses credit. The payment history of the previous owner has nothing to do with you. You want to refinance. Call some mortgage brokers. Talk to a lawyer about the notice requirement and eviction process to get that guy out of that house. If he trashes the house out of spite, have the police come to document the intentional vandalism and arrest him for criminal mischief. You'll want to tell him in a letter along the way here that that's what you will do if he damages the property and that he'll go to jail and have to get a lawyer and miss work, etc. After you get him out, you paint the whole inside and outside of the house and throw it on the market for sale. Hopefully the house will sell for more than what you are owed and you will make a profit for your time and money invested.

    All of this is assuming that the house is worth more than what is owed on it plus your loan to the guy.

    If the house is worth less than what is owed plus what you have in it, you may just have to chalk this up as a learning experience. Or you could take him to small claims court and get a judgment against him for what he owes you and if he sells the house you'll eventually get paid.

  • astcptlmgmnt17th November, 2004

    Saroz, try and get him qualified through local broker first for refinance loan to pay you off. Once he is approved and has agreed to follow thru have a 2nd lein recorded on the title for the money that he owes you, plus interest!! Deed the property back to him at the time of closing and have your 2nd lein paid off.
    [addsig]

  • astcptlmgmnt17th November, 2004

    LOX = Letter Of Explaination
    VOM = Verification Of Mortgage

  • matthewnorman18th November, 2004

    Look, NOBODY is going to approve this guy for a refi.
    He's just coming out of the foreclosure process and i'm sure that any credit check will reveal his lack of fiscal responsibility resulting in a "denied" for refi.


    RULE NUMBER 1 - never leave a home owner in the
    property. (as i'm sure you now
    have first hand experience with
    the ramifications and problems)

    RULE NUMBER 2 - never mix business with pleasure.
    If this is your x-boyfriend, shame
    on you. If not, forgive the mix-up.


    Your biggest problem is getting this guy out of your house. It may suck, but you have to do - what you have to do. Business is Business.

    If you didn't loan the guy more than two or three grand,
    you might just cut your losses and try to get a payment plan worked out. Be aware that this process of non-payment could go on for months.

    Also - as was stated earlier........YOU can apply for personal loan on the house if the deed is in your name. See a different lender.

    If the guy won't leave, you may have no other legal recourse except to drag him through the foreclosure process yourself. Call a lawyer.

    I'm sorry if this all sounds so negative, but you're in a real predicament. Never violate rule #1. There is always a good reason to let someone stay in the house, but the reason they are in that situation is b/c of NON-PAYMENT.

    I hope this was of some help......now or in the future!

  • saroz19th November, 2004

    Well, I am in the process of refinancing the property. I have a lender. I am going next week for the house appraisal. There was one done last year and house appraise for around $250,000.00 . I only need 140,000.00 to pay his mortgage off. He owe me over 15,000.00 plus interest. He has owe me for over a year and has not paid anything. I have a lawyer now. I don't think he is going to let me in to do the appraise. My lawyer said, if he don't we will evict him from the house. I really don't want to do that, but if he doesn't let me do what I have to do then he will be the one losing. rolleyes

  • Tchakamon19th November, 2004

    Here's my take, if the house is worth say....$150k, I feel bad for all the trouble you're going through. On the other hand, if it's worth $250k, YEEEEEEEEEHAAAAA!!!! Get the bastard out and treat yourself to Aruba.

  • InActive_Account19th November, 2004

    AMEN TO THAT!! Sell that house.

  • matthewnorman20th November, 2004

    It sounds like you're getting things worked out. My suggestion is to be at the house with the appraiser........taking LOTS of pictures. Have the deed in hand and be prepared for the worse. It sounds like this guy is going to put up a fight. Take lots of pics to document the condition of the house just in case he decides to destroy it on his way out.

    Good luck! .....and don't take any sh*t from this guy.
    You've already given him enough time to redeem himself. Do what it takes to get this deal completed.

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