I made a 2nd loan that is technically in default (the borrower is past the balloon date), but the borrower has continued to make the monthly payments, so I have not forced the issue. If worse comes to worse, and the borrower does end up filing BK, would I be in a worse position for not having started my foreclosure prior to the borrower filing BK? Would I just need to get a "Relief from Stay" in either case or is there a benefit in starting a foreclosure now? The property is not the borrower's primary residence and has good equity. Thanks, Scott http://www.foreclosureforum.com/board/read.php?2,339,339#msg-339 Thu, 16 Apr 2026 17:03:29 -0700 Phorum 5.2.15a http://www.foreclosureforum.com/board/read.php?2,339,402#msg-402 http://www.foreclosureforum.com/board/read.php?2,339,402#msg-402 contact me. investorsusa at gmail dot com thanks]]> socalrealestate Foreclosure Forum Fri, 06 Jan 2012 15:29:34 -0800 http://www.foreclosureforum.com/board/read.php?2,339,340#msg-340 http://www.foreclosureforum.com/board/read.php?2,339,340#msg-340
That being said, if you can get your NOD started prior to a BK, if they do file after recording, your timeline will not necessarily be interrupted, while you petition for your Relief of Stay, presuming you successfully get it within a reasonable time.

Also, you don't discuss the equity securing your 2nd so, Hopefully, you aren't concerned about "lien stripping" by some BK judge.

Lastly, borrower will likely assert that, because you continued to accept payments beyond the balloon date, you are not entitled to call the loan. This is malarkey, of course, however you may well encounter this argument. In any event, you ought to consider all scenarios and if there might be a good reason to keep the loan going (if your equity is questionable). There is a certain point at which the equity isn't there and the loan becomes a "Lonnie (Scruggs) Deal." I've got one or two of those myself.]]> Rick Harmon Foreclosure Forum Fri, 09 Dec 2011 13:36:34 -0800 http://www.foreclosureforum.com/board/read.php?2,339,339#msg-339 http://www.foreclosureforum.com/board/read.php?2,339,339#msg-339
The property is not the borrower's primary residence and has good equity.

Thanks, Scott]]> Scott-CA Foreclosure Forum Fri, 09 Dec 2011 12:46:44 -0800