Hi All, I haven’t written in a while but need some help on a new project.
I have a seller that hasn’t paid her mortgage for a while and her house is up on the block for 01/02/2013 at the Sheriff’s Sale.
They have the amount on the Sheriff’s Sale web site as $198k, but her house is worth almost $500k as a tear down, they are building $1.5-2.0Mil houses in the neighborhood.
We have agreed to a price where I can make a great wholesale fee, but I have to get a postponement at the Sheriff Sale to contact the bank with a contract.
I know what you’re thinking, just show up at the Sheriff’s sale and get it for $200k less than what I can pay her, but she’s in foreclosure due to an illness that has wracked up more bills than her mortgage and I’d like to do the right thing and help her out. Anyway, I don’t have the $200k for the Sheriff’s Sale and I know that there will be builders there who would bid up the price anyway and I’d lose my wholesale opportunity.
This is what I need:
How to contact the Lawyer representing the Bank during the holiday week to get a postponement.
Can I go to the court before the sale and ask for an extension on behalf of the owner.
Can she go to the court and ask for an extension.
Thanks again. Dave
Dave, kinda late notice ehh? I’ve postponed sheriff sales previously; but I am a lender with cash in hand. Most states allow at least 1 postponement. Some more. You should burn the candle at both ends by contacting the attorney and the sheriff.
Your client should have a “notice of intent to foreclose” and should have correspondence from the attorney handling the fc. If not, you and her can conference call her lender and get the attorney’s info. In my experience, if you have a plan that you can present to the atty, they will at least listen. The holiday week should be tough; I would call and then drive over there. Cross your fingers and toes.
You should absolutely go to the court with the client; if you go alone they may not grant the extension, and I would assume that your client will screw it up(I do reverse mortgages so I never trust my clients to do anything). Best shot is to retain an attorney on Monday(if $$ is an issue do it IF the court doesn’t give you an extension). Some debt relief attorneys have their clients initiate a bankruptcy, which I think(not sure…not an attorney here) ties up foreclosure. Could be wrong.
Hope this helps bro…and happy holidays!
Simplest thing to do at this late stage is have her declare BK…She can do this in person…that will stop it for a few days and get the bank’s attention.
They will immediately file for relief of stay…however…if she has the equity you say…the courts may step in an assist in protecting it.
Thanks for the help, especially on late notice. I’m meeting with the home owner again today (Mon. 12/23/2013) and we’ll discuss the options she might have, declaring BK being the best for the situation.
I’ll keep you posted and probably look for more help with direction in dealing with the bank.
Hi, the home owner has had a difficult time getting in touch with her lawyer due to the holidays.
The sheriff sale is on Thurs. 1/2/2014 at 2pm.
This is posted on the County web site:
“A homeowner may also request an adjournment at any time prior to the sale. By statute, the sheriff has the discretion to grant up to two 14-day adjournments. Unless otherwise provided for, these adjournments (if approved) will be given in one consecutive 28 day period.”
If the home owner goes down to the court house, do you think she can get it delayed?
Does anyone have any experience with this process?
Thanks Again. Dave
GOOD NEWS! The home owner did get to meet with her lawyer on 12/31/2013 and they are set to postpone the Sheriff’s Sale on 1/2/2014. That should give me another 28 days to get the paperwork done with the two contracts, with the seller and my buyer, and we should have a deal.
Thanks for the help and I’ll keep you posted. Dave
Just another update.
The home owner declared bankruptcy and got a 6 week extension on the sheriff sale.
I’m still talking with her to iron out the paperwork and hopefully put the deal together.