Bought a property at trustee sale back in Nov 04.
When notifing current folks living at the property that I was the new owner, found out they had bought it from the forclosee (person who did not pay bank) on a wrap. Ouch !
Anyway, informed them that there position had been wiped out due to foreclosure. I felt sorry for them, they had completly remodeled this house. I told them that I would be willing to sell it back to them, but they said they had no money because of the rehab.
Anyway, I offered to give them a year to get a bank loan. I had my attorney draw up a deed of trust, etc. 12 months of payments, baloon due end of 05.
Well, first of year came around and they still don’t have a loan. They asked if I would take $5000 to hold off foreclosure. I said sure, send me a certified check and I’ll give you four months. So, that was the first of Jan 06. Havn’t heard from them since. So, had my attorney send default notice to start foreclosure process.
Funny, today I get a certified mail envelope with a check for a monthly payment amount. They never sent their monthly payments certified.
I started to deposit it, but remember reading in the law books about a case where court found in favor of home owner, because bank had accepted less than full amount in past. This simply allowed owner more time in home under default. I’d like to use the check to defer some of the taxes I need to pay on their property.
My attorney is out of town, so thought I’d ask here about any known laws. Any help?