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  1. #1
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    Interesting video short sales, FDIC, etc.

    "The American Republic will endure until the day Congress discovers it can bribe the public with the public's own money.
    - Alexis de Toqueville, 1835

  2. #2
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    Interesting, sure is. But it verifies all the jobs being created are high paying and limited to who you know

  3. #3
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    no wonder banks don't want to renegotiate a loan. They make more money from foreclosing
    LOVE has four letters

    So does BEER, DEER,GUNS AND FISH

  4. #4
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    Quote Originally Posted by jmac00 View Post
    no wonder banks don't want to renegotiate a loan. They make more money from foreclosing
    Not always. I bought a bank-owned (after foreclosure) property. Based on the court foreclosure papers abd other documents my lawyer obtained related to the foreclose, the lender (Citigroup) probably lost about 40k on a 200K loan.

  5. #5
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    Quote Originally Posted by garya505 View Post
    Not always. I bought a bank-owned (after foreclosure) property. Based on the court foreclosure papers abd other documents my lawyer obtained related to the foreclose, the lender (Citigroup) probably lost about 40k on a 200K loan.
    I think you are dealing with a completly different circumstance with your foreclosure sale. You purchased the home at the sheriff/trustee sale held at the local courthouse which means you were the highest bid presented on that particular home. Which also means that you purchased at above the mortgage balance plus (maybe) all past due payments and fees.

    This is a different set of circumstances as the home is sold under a "short sale" in which the house never reaches the court house steps for the public to bid on.

    A short sale is exclusively between the lender of record and the prospective purchaser by way of the existing borrower (home owner). This is all done behind the scenes and is acceptable and legal to the lender under the circumstances that the new purchaser is acceptable to them as a buyer, which can also mean that the buyer is paying cash.

    One problem to the existing borrower (home owner) is that they may not be aware of the fact that the lender can still come after them for the deficit of the existing mortgage balance minus the new sale proceeds to the lender unless the existing borower (home owner) get a written release from the lender.
    "The American Republic will endure until the day Congress discovers it can bribe the public with the public's own money.
    - Alexis de Toqueville, 1835

  6. #6
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    Quote Originally Posted by DeltaT View Post
    I think you are dealing with a completly different circumstance with your foreclosure sale. You purchased the home at the sheriff/trustee sale held at the local courthouse which means you were the highest bid presented on that particular home. Which also means that you purchased at above the mortgage balance plus (maybe) all past due payments and fees.

    This is a different set of circumstances as the home is sold under a "short sale" in which the house never reaches the court house steps for the public to bid on.

    A short sale is exclusively between the lender of record and the prospective purchaser by way of the existing borrower (home owner). This is all done behind the scenes and is acceptable and legal to the lender under the circumstances that the new purchaser is acceptable to them as a buyer, which can also mean that the buyer is paying cash.

    One problem to the existing borrower (home owner) is that they may not be aware of the fact that the lender can still come after them for the deficit of the existing mortgage balance minus the new sale proceeds to the lender unless the existing borower (home owner) get a written release from the lender.
    No, my home did not sell at auction, because there was no bid at or above the minimum. The home ownership then reverted back to the lender. The previous owner went bankrupt because of the balance still owed. After the redemption period expired and the previous owner's bankrupcy completed, I bought it directly from the lender. The price I paid for it was well below the mortgage balance. My lawyer and I did the math, and the lender lost approximately 40K on this one.

    This is what actually happened. I was there and I wrote the check. I'm always amused by "experts" who base their knowledge solely on what they read.

  7. #7
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    Quote Originally Posted by garya505 View Post
    No, my home did not sell at auction, because there was no bid at or above the minimum. The home ownership then reverted back to the lender. The previous owner went bankrupt because of the balance still owed. After the redemption period expired and the previous owner's bankrupcy completed, I bought it directly from the lender. The price I paid for it was well below the mortgage balance. My lawyer and I did the math, and the lender lost approximately 40K on this one.

    This is what actually happened. I was there and I wrote the check. I'm always amused by "experts" who base their knowledge solely on what they read.
    Well, seems like you don't really know exactly how your house was purchased then.

    Since I'm the "expert", let me tell you. Your house was bid on at the auction and it was won by the highest bidder...which was the recorded first trust lien holder or the lender.

    Houses are not forclosed on by the lenders. They are forclosed on by the trustee who is listed in the mortgage documents and agreed to by both the lender and the borrower.

    When the mortgage is not paid and in arrears the motrgage lender notifies the trustee to start forclosure procedure. There is a certain way in which the trustee has to proceed to during the foreclosure or the foreclosure will not be perfected.

    Once all that is done, then the property goes up for sale to the public at the court house for the general public to bid on. But the catch is that the lender must bid also, even though you do not see them bid they have alread bid and recorded it with the auctioneer, and that bid amount is the remaining mortgage amount. If the lender does not represent themselves then anyone can bid on the property, say for one dollar, and get title to the property including all propriety liens.

    That is why the lender must place a bid or they will loose everything. Since no one of tje general public bid at the auction except the lender the lender than won the bid and the house went to them...only because they bid. The title does not automatically "revert" back to them.

    Then they had it up for sale to get rid of the property as soon as and as best they could to a qualified purchaser, which apparently you were.

    Since there was also a redemption period that also states something about the type of mortgage originally placed by the original borrower. Not all morgtages have a redemption period.

    And just the fact that you paid well below the original mortgage is not an indication of value. What is an indication of value is the fact that the home did not sell at the auction for the existing morgtage balance plus costs.

    You should really study how this process works down to the last detail before you negotiate on house again.

    Spend some money on a real estate attorney before you bargain on any real estate again before you end up with some expensive surprise. A good real estate attorney is worth his/her weight in gold.
    "The American Republic will endure until the day Congress discovers it can bribe the public with the public's own money.
    - Alexis de Toqueville, 1835

  8. #8
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    Quote Originally Posted by DeltaT View Post
    Well, seems like you don't really know exactly how your house was purchased then.

    Since I'm the "expert", let me tell you. Your house was bid on at the auction and it was won by the highest bidder...which was the recorded first trust lien holder or the lender.

    Houses are not forclosed on by the lenders. They are forclosed on by the trustee who is listed in the mortgage documents and agreed to by both the lender and the borrower.

    When the mortgage is not paid and in arrears the motrgage lender notifies the trustee to start forclosure procedure. There is a certain way in which the trustee has to proceed to during the foreclosure or the foreclosure will not be perfected.

    Once all that is done, then the property goes up for sale to the public at the court house for the general public to bid on. But the catch is that the lender must bid also, even though you do not see them bid they have alread bid and recorded it with the auctioneer, and that bid amount is the remaining mortgage amount. If the lender does not represent themselves then anyone can bid on the property, say for one dollar, and get title to the property including all propriety liens.

    That is why the lender must place a bid or they will loose everything. Since no one of tje general public bid at the auction except the lender the lender than won the bid and the house went to them...only because they bid. The title does not automatically "revert" back to them.

    Then they had it up for sale to get rid of the property as soon as and as best they could to a qualified purchaser, which apparently you were.

    Since there was also a redemption period that also states something about the type of mortgage originally placed by the original borrower. Not all morgtages have a redemption period.

    And just the fact that you paid well below the original mortgage is not an indication of value. What is an indication of value is the fact that the home did not sell at the auction for the existing morgtage balance plus costs.

    You should really study how this process works down to the last detail before you negotiate on house again.

    Spend some money on a real estate attorney before you bargain on any real estate again before you end up with some expensive surprise. A good real estate attorney is worth his/her weight in gold.
    The fact is that I paid much less than the mortgage balance and the lender lost a lot of money, which was my reason for posting. I used a real estate lawyer, and my home is worth much more than I have in it. I wasn't asking for your advice. I was only pointing out that lenders don't always make money on foreclosures.

    How many foreclosure homes have you bought?

  9. #9
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    Lots. And I use to sell REO's for three banks when I was heavy into real estate investing.

    Quit giving me an attitude and try to learn from this. Every thing I said was to your benefit to learn.
    "The American Republic will endure until the day Congress discovers it can bribe the public with the public's own money.
    - Alexis de Toqueville, 1835

  10. #10
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    Quote Originally Posted by DeltaT View Post
    Lots. And I use to sell REO's for three banks when I was heavy into real estate investing.

    Quit giving me an attitude and try to learn from this. Every thing I said was to your benefit to learn.
    Then you didn't buy any with your own cash like I did. Just as I thought.

  11. #11
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    I think what we have here is a very complicated process that MANY of us (common folks) don't understand.

    I think there is a big difference between a citizen purchasing a foreclosed property and a financial institution purchasing a foreclosed property. Personally I don't think banks "buy property" I think they buy paper and they couldn't careless what the structure is or looks like. They only care about making money on the process

    The process for one is fairly straight forward. The process for the other is complicated, but very profitable
    LOVE has four letters

    So does BEER, DEER,GUNS AND FISH

  12. #12
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    Quote Originally Posted by garya505 View Post
    Then you didn't buy any with your own cash like I did. Just as I thought.
    You'll fit in here really well.
    "The American Republic will endure until the day Congress discovers it can bribe the public with the public's own money.
    - Alexis de Toqueville, 1835

  13. #13
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    What is it that banks are supposed to do in a Capitalist society other than make money?

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