InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Foreclosure Codes 50 State Resource Data Foreclosure Glossary Foreclosure Statistics 60+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Here's our view... Posted by Ward-CA- on June 12, 2003 at 6:45 AM In Reply to: newbie needs views on FC posted by rodney on June 11, 2003 at 4:52 PM : Going through some dockets in my county I came across a 3br 2b sfh under foreclosure. : Facts: : 1) Owners are from out of state. : 2) The husband is deceased, which apparently caused the : FC proceedings. : 3) Bank one is FC on an assignment of mortgage received from Crown bank for approx, 36k. : 4) This mortgage, which is apparently a second, went to : motion for summary final judgment on June 5th and was granted a final judgment sale for July 7th. : 5) About two months after bank one fc filing, the fnma files : a FC proceedings for approx. 65k claiming bank ones claim : is inferior to the interest of fnma. : 6) That a bank, that is no longer operating, was delivered a : a note and mortgage which was lost by the plaintiff (fnma). : 7) On county records there was apparently a mistaken satis- : faction of the fnma mortgage when the defunct bank closed : operations. : 8) Fnma summary final judgment hearing is for the June 23rd : 9) I had a person( who lives close by the widower’s current address) visit her, but he was unable to make contact so he left two handwritten letters to contact him. : SFH Facts: : 1) Comparables 115k -130k : 2) SFH in good condition(Viewed from outside) : 3) ARV 120k : 4) 1st mort.,int,att fees etc 65,000 : 2nd mort.,int,att fees etc 36,000 : Total 101,000 : Questions: : 1) Do you think there is time to persuade bank one to take : a discount(S/S) on this? : 2) Does fnma do S/S? : 3) What happens when the 2nd FC sale is first? : 4) Of course everything here is contingent upon me getting : the widower to talk to me, but if all goes well and I : persuade her to give me a POA, PC,AR Should I go straight to bank one for a discount? Or should I wait out ihe FC sale? Any comments and suggestions would be much appreciated. : Thanks, : Rodney =•=•=•=•=•=•=•=•=•=•= Rodney, OBSERVATION: The protocol of a short sale requires proof that the seller of the over-encumbered property will not receive a penny out of their sale since the lender is expected to take a loss on their loan. Banks don’t see any logic why an owner should receive any remuneration in a situation where the lender, who’s in a senior equity position, isn’t getting totally paid off. ANSWERS: #1. BankOne is just the agent for Crown Bank. It doesn’t have the independent authority to discount the opening bid. #2. Yes, FNMA will take less once they have title to the property. So that presupposes that it won’t sell to an outside bidder at the foreclosure auction. #3. The foreclosure sale of a junior lien will extinguish itself and wipe off the title of the property all those liens and interests junior to it. Either an outside bidder will take title to the property or the foreclosing lender if there’s no third party bidding. #4. Approach Crown Bank, the owner of the loan. Tell them you’d be willing to buy from the widow, but only at a price that would require Crown to reduce the payoff of their loan balance to the amount you feel is merited. Hope this helps. Follow Ups: Re: Here's our view... Rodney 2:10 PM, 06/12/03 (1) Restating #3. Ward-CA- 4:41 PM, 06/12/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Going through some dockets in my county I came across a 3br 2b sfh under foreclosure. : : Facts: : : 1) Owners are from out of state. : : 2) The husband is deceased, which apparently caused the : : FC proceedings. : : 3) Bank one is FC on an assignment of mortgage received from Crown bank for approx, 36k. : : 4) This mortgage, which is apparently a second, went to : : motion for summary final judgment on June 5th and was granted a final judgment sale for July 7th. : : 5) About two months after bank one fc filing, the fnma files : : a FC proceedings for approx. 65k claiming bank ones claim : : is inferior to the interest of fnma. : : 6) That a bank, that is no longer operating, was delivered a : : a note and mortgage which was lost by the plaintiff (fnma). : : 7) On county records there was apparently a mistaken satis- : : faction of the fnma mortgage when the defunct bank closed : : operations. : : 8) Fnma summary final judgment hearing is for the June 23rd : : 9) I had a person( who lives close by the widower’s current address) visit her, but he was unable to make contact so he left two handwritten letters to contact him. : : SFH Facts: : : 1) Comparables 115k -130k : : 2) SFH in good condition(Viewed from outside) : : 3) ARV 120k : : 4) 1st mort.,int,att fees etc 65,000 : : 2nd mort.,int,att fees etc 36,000 : : Total 101,000 : : Questions: : : 1) Do you think there is time to persuade bank one to take : : a discount(S/S) on this? : : 2) Does fnma do S/S? : : 3) What happens when the 2nd FC sale is first? : : 4) Of course everything here is contingent upon me getting : : the widower to talk to me, but if all goes well and I : : persuade her to give me a POA, PC,AR Should I go straight to bank one for a discount? Or should I wait out ihe FC sale? Any comments and suggestions would be much appreciated. : : Thanks, : : Rodney : =•=•=•=•=•=•=•=•=•=•= : Rodney, : OBSERVATION: The protocol of a short sale requires proof that the seller of the over-encumbered property will not receive a penny out of their sale since the lender is expected to take a loss on their loan. Banks don’t see any logic why an owner should receive any remuneration in a situation where the lender, who’s in a senior equity position, isn’t getting totally paid off. : : ANSWERS: : #1. BankOne is just the agent for Crown Bank. It doesn’t have the independent authority to discount the opening bid. : #2. Yes, FNMA will take less once they have title to the property. So that presupposes that it won’t sell to an outside bidder at the foreclosure auction. : #3. The foreclosure sale of a junior lien will extinguish itself and wipe off the title of the property all those liens and interests junior to it. Either an outside bidder will take title to the property or the foreclosing lender if there’s no third party bidding. : #4. Approach Crown Bank, the owner of the loan. Tell them you’d be willing to buy from the widow, but only at a price that would require Crown to reduce the payoff of their loan balance to the amount you feel is merited. : : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction.

Copyright © 1997-2003, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455