Can bank block bringing loan current for Sub2 deal?

[Curtis H.]

Hi guys, 

I have a post one page back with all the boring details on this Sub2 opportunity. Seller is willing to deal, and I think I have a 85% shot at getting it. Here are my questions...

1) Can the bank NOT let me bring the loan current and still send to auction? Or if I bring the loan current the only thing left for them to do is possibly call the loan due? This home is scheduled to go to auction in about a week. I plan to get it under contract tomorrow with a 5 day inspection/due diligence contingency. 

2) Realtor is trying to double dip on commission. I don't have a buyer's agent and he is trying to get 6% on a $450K sale and leave the owners with nothing. My thought is he gets 3% (I am paying his commission) and he'll like it. Will there be a problem with this? 

3) I give him the $100 earnest money when we sign the contracts? Or that goes to escrow? Then I find a title company and schedule the closing?

[Darrell Shepherd]

They just don't care, especially the attorney. Its all just routine stuff to them, I'd say well over half the foreclosures get reinstated and mom and dad write a lot of those checks. They are cashier's checks anyway, so they dont know where they come from. I call up and say "Hey, my name is Darrell Shepherd, I'm working with john and suzy homeowner to get their loan reinstated, who do I send the letter of authorization to?" They can't talk to you about it until the borrower signs off on you getting the info. On your first one just call them and ask what they need in order to discuss the account with you (POA, LOA, etc). The bigger atty offices will look up who's handling the case and get you do them, the smaller ones will just give you their fax or email. Sometimes it takes a day or two to get that processed after you send it in with the real big ones. Hard to do on a super tight timeline, but I've done them in under a week before, just pretty stressful because they are slow and you cant do much to rush them, although they will try if they know the sale is coming up.

The atty office will just be relaying info to you from the bank.  Reinstatement amounts and such.  They simply just don't care where the money comes from or what happens after they get their fees.  You aren't doing anything wrong, no need to be all shady and stuff, I've had convos about my business model with the paralegals while we were sitting there waiting for paperwork and such, especially when I was doing several a month with that one firm.  You aren't assuming the loan, by the way, you need to get that vocab out of your vernacular, there's a difference between buying sub2 and assuming and these aren't assumable loans we're dealing with.

I've never really have any direct contact with the bank unless I chose to. I do call and get the payoff myself, so the bank has the POA or Letter of Authorization on file for that, but everything about the foreclosure is done through the atty. Once the loan is caught up and no longer in foreclosure, then its just like any other sub2 deal.