Bought lot on golf course that filed BK short time later then crash. Laid off from job so stopped payments with M&I Bank. Thought they foreclosed but then assn got judgment for non payment of dues. Bank bought out by BMO. Checked credit report and says loan written off. Should I offer bank the deed or what are options? Value too low to sell. Trying to get realtor license and state won’t give with this issue.
That is a bizarre situation.
Evidently, there’s still a mortgage lien recorded against the lot by the original lender, and now there’s a judgement lien recorded by the HOA? Is that correct?
If the lot isn’t worth significantly more than what the HOA lien amounts to, then your options might be to deed the property to the HOA, and call it a day.
Deeding a valueless property with a judgement against it, won’t interest a bank whatsoever. They will refuse the offer, since it would create liability for them, with no upside potential. The bank has already decided they don’t want that property in their portfolio under any circumstances, and charged off the debt. So now it’s just a matter of avoiding more damage to your credit and reputation by abandoning the lot, and deeding it over, uncontested, to the HOA.
I don’t understand what you’re referring to in regard to a real estate license and this property. I’ve never heard of someone unable to get a real estate license, because of a minor credit issue like this. There must be more to the story.
Yes still mortgage lien no satisfaction filed and judgment against me personally rather than property. It is worth quite a bit more than judgment but a lot less than loan. I don’t see how I can deed to anyone but bank without a satisfaction filed. There are some unpaid Property taxes too. In Minnesota the Dept of Commerce won’t give me realtor license if I have any judgments or owe governments money. Judgment is for $1000 and lot worth about $35,000. Loan balance was about $70000 so bank could sell and recoup something. But it’s another issue with bank being bought.
Hi,
The problem I see is the association may not want the property but will continue if unpaid to file suit to continue to collect HOA fees which could effect your credit. Probable what you overlooked was foreclosure takes a period of months usually missing payments for 90 plus days then a minimum I think of 105 days to foreclose? I think that is the shortest in this country.
You probable failed to pay your HOA fees and since the lot is worth so little the bank decided not to pay the money to foreclose but to write it off, I doubt they want it back at all and especially with the lien on it, but they are going to leave their $70k note in place in the event you build on it or sell it!
You could try to sell it private party as a short sale and ask the bank to short the note if you have a buyer!
GR