We are buying a house from a friend and just found out it is going into foreclosure?
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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.
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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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.
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.
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.
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!
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.
hopefully they have enought equity on the home, then
if they do, that should hopefully pay for the mispayments your friend was supposed to be making. if not, call the bank and ask them if they can Short sale you the property..if they refuse, tell them it's going to cost them more if the home goes into foreclosures (*lawyer fee's etc...)
I suggest you stop being friends with that person..he screwed you
and took advantage of your friendship!
http://www.theforeclosuresinfo.com/bay-a...
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
are you trying to assume the mortgage? That is nearly impossible these days... just refi the loan and take it over, the bank wont do actual auction for quite some time
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.
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!
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.
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