My beach home in CA in preforeclosure...Any help appreciated.

Foreclosures, Short Sales, Tax Foreclosures
1

Maybe someone here can provide some assistance/enlightenment. Here is the deal:

Got into an equity share deal with my real estate agent/loan broker about 10 months ago.

2450 sq ft. 4 bed 3 bath + deck w/ ocean view

Bought the house about nine months ago for 1.315

Put in about six months of labor, and about $50,000 to renovate this thing. We opened up the whole downstairs, upgraded all appliances, added new granite, marble, wood floors, lighting…etc…

1st loan 1mil
2nd HELOC 315,000
both with Countrywide

My real estate agent/loan broker was supposed to take his commissions from the sale of the home, and loan, and apply them to the mortgage for three years. At the end of three years, we would split whatever equity there was in the home. He was responsible for paying the insurance, the tax, and $6,000 towards the monthly mortgage payment. I was responsible for $3,000 of it. He ended up spending all the cash from the 3rd party trust account, and is now saying that he’s claiming BK. He not only spent all the money from the trust account, he also spent the last two months of my contributions to the mortgage ($6,000).

I am definitely open to suggestions. My lender has agreed to put the last three months late payments on the end of the mortgage, but I still can’t float $9,000 on my own.

Thanks for your help,

2

This is difficult to answer because I dont want to break the forum rules… A new Years resolution of Mine.

But I know someone who helps luxury homeowners and may be able to help… He may not be able to as well… He started a company and has done the legal for multiowner splits on luxury homes and he may fine that yours is a canidate.

Good Luck

Michael Quarles

3

Is there any equity in the home?

4

I doubt it, although the beach properties around here are still being bought and upgraded.

5

Time to think short sale or maybe a subject to and find someone that is willing to L/O the home for $9000 a month.

6

cosmosworld,
I really need to know more of what you have out of pocket on this deal…This is a very high leverage deal…It may be worthwhile for you to bail out as well…I know you have 50k and your time into this, but imvho the deal was destined for failure…You should consider if the heavy note and declining market is worth you putting more good money after bad money…Also if you are short on cash with not having the $9,000,it’s only going to get worse…The struggle won’t be easier and the market isnt going anywhere but down for the months to come…Consider your options wisely but bailing out would be on the top of my list if I were you…