The Freaking Bank Won't Take Their Money!!!
Hello folks,
Heres the situation, a close friend of the family declared bankruptcy and was discharged about 18 months ago. They were making their mortgage payments through the trustee, well, now the bank claims that they owe money, which is true, but the bank keeps jacking up how much they owe. These folks were only 5 months behind, but the bank claims they owe over $16k in attorney fees, plus another $16k in late fess and misc. These folks have about $90k in equity on a $150k house. The woman who owns the house had her son send them a personal check to cover what was owed and they sent it back stating that they dont accept personal checks, they then sent them certified funds and that was also returned becuz the bank said they owed more. In the letter the bank sent it states on the first page that they owe $16k and then on the last page it says $16k and any other fee, it really says that. So the homeowner went and got an attorney and he is "fighting" it. But, she just wants the simplest solution, I told her I would stick with the attorney, but then she began to tell me how she was going to sell the house to her son, but when they got to the closing the payoff amount was higher than what they agreed (they never got the payoff amt in writing BEFORE the closing). As we can see there is alot of stuff happening here, probably some stuff I'm not even aware of, but my question is, can the homeowner have an investor discount the payoff amount and then refinance with another bank? The bank that currently holds the mortgage is Chase Manhattan and the loan servicing company is Option 1. Thanks, Tim
This deal has become a nightmare from what you are explaining. The best thing to do is continue with the sale of the property. The payoff amount on mortgages are always higher than the original balance. She could have refiance the property under her name since the BK was discharge 18 months ago. The investor will probably be able to discount the amount owed, but the homeowner will only get a few thousand dollars. I suggest to refi or sell property.
Al,
Loan Consultant
Could I get the house under contract, negiotiate with the bank for a discount and the assign the contract to her (this is assuming we can find her financing)? Or get it under contract, negiotiate with the bank for a discount and then assign it to her son have him purchase her home and then have her buy it back from him?Thanks, Tim[ Edited by HasSpoken on Date 03/15/2004 ]
The bank sounds squirrely. I would have her stick with the attorney and sell it to her son. The intervention of another party at this time might slow it down and even make matters worse.
Who is the lender on this loan?
C-
I was told that Option 1 is servicing the loan for Chase Manhattan. Thanks, Tim
This is called "predatory lending"! I know of someone this happened to... What a mess. I bet someone know they can get this far below market value and flip it OR they just want to see how much money they can get from the current owner.