A friend of ours decided his house was to much for him since he was divorcing his wife so my husband and I moved into the house and told him as soon as the divorce was final we would buy it. We gave him the money each month for the mortgage payment and when his divorce went final we started the paperwork at the bank to get the loan for the house which we are about two weeks away from closing on due to a problem with the title search that had to get straightened out. We just found out today that he hasn't been paying the house payment at all and if his mortgage company doesn't have the last 3 payments by monday they are foreclosing on him. We live here not him and we are so close to closing anyone know how this will affect us getting the house. We really don't want to move or loose the property it is perfect for us and our family but since he just dropped this on us we are scared we are going to be thrown out on the street.
2006-09-29 16:17:12 · 14 answers · asked by Martha S 4 in Business & Finance ➔ Renting & Real Estate
We have not only paid the payments to him but also gave him $10,000 down which we have in writing with his signature, he doesn't have any money and is filing bankruptcy so if we loose the house we have lost our home and 10k
2006-09-29 16:59:22 · update #1
We are buying the house for 125k and he owes 89562 on it. After paying for appraisals, title search, insurance among house payment and utilities and giving him the down payment we can't come up with 2300 to catch up the payments he didn't pay.
2006-09-29 17:01:28 · update #2
My advice is if you know whow the lending institution is contact them and explain the situation. There are steps to be taken but you have not given enough info - If you need some help E me and I'll give you some direction.
2006-09-29 16:24:01 · answer #1 · answered by likeitis 3 · 1⤊ 0⤋
Lenders really, really, really do not like properties going through foreclosure. Call them ASAP and explain everything. The money you have paid the owner may not apply towards the mortgage as far as the old or new loan goes, but I would most certainly take him to small claims court unless it is worth hiring an attorney. Basically, you were renting month to month but the money you gave him still should have been applied to the home. What a mess, but probably workable if you act quickly.
See what your bank can do to help speed this up too. The three late payments might get tacked on to the end of your new loan, but I would still sue the a**hole for it.
Good luck and we hope to hear some good news from you next week!
2006-09-29 16:48:56 · answer #2 · answered by mickeyg1958 4 · 0⤊ 0⤋
Live and learn. You should have been making the payments to the mortgage company, not him. Anyway, that's in the past. You probably need to contact the mortgage company that is about to foreclose. They might wait if you have financing lined up, but if they have already filed the paperwork, the only way to stop it is to send them some money, or have the seller file bankruptcy. Call the sellers mortgage company, and work out the details with them. You might be able to pick up the house at the forclosure proceeding, for less money. Here in Texas, they sell off foreclosure properties at the courthouse steps, It is normally the mortage company that buys the property, but worth a try. You could contact the attorney handling the foreclosure for the sale time and date.
2006-09-29 16:25:54 · answer #3 · answered by DallasGuy 3 · 0⤊ 0⤋
You can contact his mortgage company buy the house from them in preforclosure. I called a mortgage company about a similiar situation and then even offered me the property for below what was owed. Do not continue closing the deal to pay him the money, if he sells after its in foreclosure you could be out the 125,000 and the house. Once forclosure has started he has no rights to sell the house with out permission of the mortgage comapny. Do call the mortgage company, you may end up paying only the amount of the mortgage and not the amt you agreed with him. The banks want to sell before actual forclosure because it saves them time and money. Call them now!
2006-09-30 06:20:16 · answer #4 · answered by AMANDA B 2 · 0⤊ 0⤋
The lesson is, next time pay the mortgage holder directly. Your friend screwed you. You can still purchase the house at perhaps a lesser amount from the mortgage holder. If it actually goes into foreclosure, you will have to bid on it to buy it.
Have you talked to your "friend" about paying the mortgage? That should be your first step. The good news is you will probably have to pay less for it in foreclosure than if you buy it directly from the owner. Good luck.
PS: You could still buy it from the owner, deducting your payments from the sales price and paying the mortgage holder for the arrearages.
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2006-09-29 16:24:16 · answer #5 · answered by lcmcpa 7 · 0⤊ 0⤋
if you can, contact your friend lender and explain the situation, when you are so close to get this transaction done, maybe the lender will give yours friend more time to come up with the money they ask him to pay and they can collect this money on the closing, simply he will get less 3 mortgage payments after closing , if of course he will get enough money after closing. if you use attorney for your closing, I'm sure he will help you with this, but the good thing is, the lenders lose too much money if the house they own going to the foreclosure, so there is a big change ,that they will work with you. good luck.
2006-09-29 17:06:14 · answer #6 · answered by bianca 4 · 0⤊ 0⤋
I would notify the bank of your interest in the property immediately. The bank will typically work with you if they know they are going to get paid when you close. I would recommend getting your own lawyer to close this loan rather than going through a title company. Sounds like he might have lawsuits pending. I would also buy OWNERS TITLE insurance when you close. Do not confuse this with the Title insurance that is paid to cover your bank on the loan. Specifically ask about this if it is not brought up and buy it.
2006-09-30 11:13:35 · answer #7 · answered by spirus40 4 · 0⤊ 0⤋
This is easy...you will probably have to make up the miss payments. That way the mortgage holder doesn't foreclose. I assume you are buying the house for what he owes on it. Try to get him to pay you back after you get the home. Either way, you probably got the house for a better price.
2006-09-29 16:45:53 · answer #8 · answered by mikey 2 · 0⤊ 0⤋
I'm an expert in this area. The lender cannot discuss his loan with you without his permission regardless who holds title. Your only hope is to get the deed, which I believe you or escrow has or the lender will not fund, and ask the lender to loan you more money or get a hard money lender.
You also have another bullet to dodge.Ifyou live in a community property state or if his wife is on title, she can come after you as well.
Regards
2006-09-29 19:33:14 · answer #9 · answered by Anonymous · 0⤊ 0⤋
It sounds like he was pocketing the mortgage money you were giving him. This is his responsibility. I would talk to a lawyer. They would be able to tell you more about your options.
I wonder if you contacted the mortgage company and talked to them if they could help you out. Of course, they will want the last three payments. I would consider suing him for them. I wouldn't want a friend like that.
2006-09-29 16:25:54 · answer #10 · answered by country girl 5 · 0⤊ 0⤋
if i read your question correctly it doesnt seem like you have a big problem you have agreed to buy the house for more then balance of the mortgage. have your attorney call the bank and let them knwo you are in contract to buy the house and you will be closing shortly, this may stop any furhter legal proceedings or fees.
when you go to closing the bank will take whatever is owed to them and the balance if any will go to the seller.
good luck.
2006-09-30 02:02:27 · answer #11 · answered by Anonymous · 0⤊ 0⤋