All Forum Posts by: Cindy McHugh

Thank you both for the input. Chris, I just sent you a PM. 

I sold/financed a home in 2011. Buyers filed ch 13 in 2012 and I received payments through the bk trustee. Their plan ended in June 2017, when I stopped receiving payments, but the bk was was not finalized until Feb 2018. I can now foreclose.

The couple divorced and remarried, neither live in the home I sold them. The husband is renting it to someone. The original attorney who prepared the Deed of Trust no longer handles foreclosures, so he referred me to someone. I called him 2/27/18 and asked their cost to foreclose. He said $1200-$1500. I repeated this back and he confirmed. I told him that was fine. 

I just received a letter today from the attorney at this firm asking for a retainer of $500 and stating the average cost for their foreclosure services is $5000. It said I'd also need to pay the original attorney (listed as Trustee) a minimum of $750 to a maximum of 5% of the sale price (which would be approximately $3000). So I'd be looking at $5750 to $8000 to foreclose on a $60k sale.

I responded with a cc to the person who quoted $1200-$1500. He said it was a misunderstanding because he didn't include the fees through the sale process (I don't know why he thought I'd ask for the cost of a partial service).

I contacted the original attorney (Trustee) and he said he'd reduce his Trustee fee because I've given him a lot of business over the years. But in addition to his reduced fee, I'm still looking at an average of $5k for the foreclosure attorney.

I've never done this (and never will again), so I'm wondering if this is typical for a nonjudicial foreclosure. The original attorney had told me it would cost ~ $4k total if I had to foreclose, so I'm thinking $5k+ may not be too far off base. 

I'd also welcome recommendations if anyone knows of firms that handle nonjudicial foreclosures in Surry County NC. So far, I'm not impressed with the firm I contacted.

Thanks in advance.

Many thanks to everyone for sharing their thoughts. I will ensure that the agent involved is aware (in writing) of the situation. And any further agreements will be detailed in writing.

I should clarify that I have a local real estate attorney I work with. I've purchased 4 homes in that town and sold 3 (in addition to buying this one back). He's handled everything for every transaction. And if these buyers are involved, I will run this situation by him before anything is signed or finalized. I just want to be sure I'm approaching the situation in the best manor, particularly since his paralegal is this realtor's cousin (small town).

I wasn't familiar with the term 'net listing,' but that's an accurate description. I stand by my statement of giving a realtor anything over the $69,900, but I would expect that the offer would have been made based on an honest representation. If the realtor pointed out that the house sold one year ago for $84k and now has a new roof, so it may be worth more than the asking price - and that elicited a higher offer, I wouldn't have a problem with her keeping the difference. But I don't like being unjustly "blamed" for a higher price.

I've only shown the house to one other couple and they also want it. In fact, they offered $83,350, but they want me to finance it for 15 years and although they have $10k to put down, they don't want to provide credit reports. For a multitude of reasons, I don't want to go that route.

I have some other people who are interested, so I'll continue to show it. Two are from out of town and didn't want to come and see it if it was under contract. And one person walked around the outside and wants to come back with her husband. So I may have other options. I'm not crazy about the hassle of USDA financing, but I've spoken with some realtors and other investors in the area and they said that virtually everyone is using USDA financing because they don't have to put anything down. Gee, what could go wrong there?

Thank you again to everyone who shared your thoughts. I'm going to go over them all in detail and will consider every point.

I sold a home in 2012 for $84k and I financed it. The buyers put a new roof on the house in 2013 ($3500) and then walked last month, leaving a payoff of $69k (and change). I listed the house on Craigslist for $69,900 shortly before the date I was getting it back. I had 3 people who wanted to see it once the occupants moved out. On the day of the closing, a realtor called me and said someone she had been working with saw my house on Craigslist and she wanted to look at it that day.

The people were still packing, but I told them they were free to drive out and if the people didn't mind, they could go inside. She asked how much I wanted for the house and I explained the situation and told her I wanted the payoff amount of $69,900.

Later that day, she called back and said the people loved the house and wanted to buy it. She asked about a commission. Because I had other people waiting to see it, I explained that I didn't want to accept anything that would net me less than the payoff at that time. She told me to consider it sold and said something like, "these buyers are willing to pay more than asking price." I told her that if they offered anything over $69,900, she could keep the difference as a commission. She sent me an offer for $75,900 with $500 down and with me paying $3000 toward their closing costs. There was no mention of a commission in the offer.

There were a few issues I had with the offer: they wanted a month to inspect, which I felt was excessive; since it was USDA financing, which could take months to close, I asked if they could put more than $500 down; I asked what would happen if we didn't close by the closing date (I always had a penalty on offers I made); and I changed General Warranty to Special Warranty. I responded via email with these issues and I also noted that there was no mention of her commission in the offer.

She responded and said I'd have to sign a separate paper for the commission and that she may be able to change the inspection to 12 days. Nothing else was addressed. I called her and she said that if it didn't close on time, we'd just extend it (indefinitely). And she said that $500 was a standard downpayment. I told her I wanted $1000, particularly if the closing may be extended for several months.

Several days later, she called back and wanted to know if I had signed the contract yet. I told her I had not and mentioned the reasons (above); I had not received an amended contract or an answer about the $1000 down. She said the buyers wanted to see the house again, so she wanted the key. I had to go out of town, so I left a key at the house and told her where it was.

I hadn't heard anything 6 days later, so I checked the house and it was obvious they had been there (windows left wide open). I relisted it on Craigslist that day and received 3 calls within 2 days, one of which was from the person who made the offer. She wanted to know how much I wanted for the house and I told her $69,900. She said the realtor told her I added $3000 to the price to cover legal expenses I incurred in removing the last buyers. She told them I wanted $73,500, but she was able to "talk me down" to $72,900 and that I wouldn't accept a penny less. She said the realtor told her she "may" make $400 on the deal, but said she was getting no commission.

When the buyers learned I only wanted $69,900, they wanted to tear up the contract they signed with the realtor and sign a contract with me directly.

I suggested that she call the realtor and explain that there must have been a misunderstanding, but she doesn't want to do this. She just wants to tell the realtor that she decided not to buy it - and then buy it from me directly.

The buyer just made contact with me two days ago and her realtor called me today, but I was in an area with no service and I haven't returned the call yet. I feel like the realtor should know what's going on. I'd prefer to give the buyer the chance to explain the situation, but if she doesn't, I feel like I should. I'm concerned that the realtor could come back to me later for a commission, since she did send me a contract in the buyer's name - although I never signed anything with her. Still, I don't feel right about writing a contract with the buyer and not telling the realtor.

Incidentally, the buyer saw the listing on CL and thought it was posted by a realtor, so she called her realtor, who told her that she'd call the listing agent and get access to the house. When she got there and saw the FSBO sign, she realized she had made a mistake.

I'm curious how others would handle the situation. Any ideas?

Thanks in advance for your input (and for reading all the details).

I bought a 56-lot park in March. It was bank-owned and in poor condition. We've done some evictions and are working to turn the place around. We're at the point of moving in new homes and an issue has come up regarding the lot space allocated to each resident. The spaces are fairly small: 56 lots on 7.23 acres.

Most of the residents have been there for quite a while and have worked it out themselves. For the most part, they use the space from their front door up to the back side of the next trailer. Some have steps off the back door that go into the front yard of the next home, but this hasn't been a problem, since everyone appears to use their front door. This seems to be working, but I have some concerns with making it the "formal" policy. My biggest concern is lawn maintenance. If the person next to you has use of the space up to the back of your home, he is also responsible for maintaining the yard and I'm afraid that weedeating could damage his neighbor's skirting. For this reason, I thought maybe we should make the lots end midway between the homes, but this really cuts the "useable" part of the yard down, since it's divided on each side of the trailer. So I was thinking of making it within 4' of the back of the home on the adjoining lot. Any ideas?

There's one exception already in place, where the person is using the yard on the back side of her home. So the person on the next yard is using the back side of his home. The next lot is empty. We're planning to move a home onto the empty lot, so we need to address the issue and I'm curious how others parks define each resident's lot.

Thanks Ned. We don't have any leases. Most of the tenants moved in during the bank's ownership and there were no applications or leases. We're requiring leases, but it's been difficult to get the residents to respond and comply.

State law has procedures for abandoned mobile homes, but both attorneys I met with said that was not an avenue worth pursuing. They estimated it would cost $1200-$1500 and one attorney said he had never been successful. And they said that the taxes would have to be paid regardless. I met with someone from the tax office who said the County would consider holding a tax sale, but the bidding would begin at the amount of back taxes owed + title search fee + publication costs. The homes aren't worth that, so nobody would bid. He said they'd go back on the books with all the back taxes still against them - and continuing to accumulate.

When we obtained the Writs, the judge said we had the right to tow the homes after 10 days, but we can't find a company willing to tow them without a title because they can't do anything with them either. (If they could even be towed safely due to their age/condition.) Our attorney said we can't demolish/scrap them without title.

We were somewhat aware of the title issue prior to purchasing the park, but since we weren't buying any homes, we weren't overly concerned. We assumed that the DMV would know who legally owned the homes. And we didn't realize the back taxes would/could go unpaid for 7 years and accumulate to such an amount. The homes are drastically overvalued. I was in one that has only one working electrical circuit, no floor coverings, had a hole in the roof, rotten floors, etc. The County values it at more than $4500. One in better shape recently sold for $200 and there were no back taxes due because the County didn't know it existed - despite being in the park for 12+ years. Park owners are supposed to provide an annual report of homes in the park, but the former owners didn't bother and the County never enforced it. There are penalties for not displaying a current tax sticker on the mobiles, but they're not enforced either.

I think the current year's taxes could be appealed, but they won't do anything for the arrears.

Thanks again.

We purchased a 56-lot MHP in Georgia on March 1, 2013. It was bank-owned for 3 years and suffered from neglect. We're trying to get it turned around and have done 11 evictions so far (of 39 occupied lots).

The problem we're facing is that the residents don't legally own their homes, so when they're evicted, they just leave them. Most bought them 3 years ago and didn't want to pay the back taxes, so they never transferred them to their names. The tax office has done nothing about it, since they felt nobody would bid on them at a tax sale (they're older and in poor condition). As a result, taxes haven't been paid on many in 7 years and they're in excess of $1000. Many of the homes aren't worth that. The tax office won't budge on the amount. The city condemned/demolished a number of homes just before we bought it and there are others that are 'borderline' to being condemned at taxpayer's expense.

The second problem we're facing is trying to identify the legal owner of the homes. We obtained copies of the titles to most of them, but they're in a business name and nobody (Secretary of State, Clerk of Court, Tax Office, or DMV) seems to know who is legally responsible for the business. Two different individuals claim it's them.

Many of the residents have titles signed by one of the individuals who claim ownership (and we believe he's the rightful owner). They paid for the home and own it (have signed title), but since they never titled it in their name (to avoid taxes), they're not recognized as the legal owner. I wouldn't think it would do us any good to obtain a judgment against that person because I don't think we can place a lien against the home if it's not in their name.

We've consulted with two attorneys on the matter, neither of which could give us clear direction. Both said it was not worth pursuing abandoned titles. One suggested a Title Bond company, but when I called a company and explained the situation, they wouldn't get involved.

As we do evictions, the homes sit vacant. We've tried to have them hauled off, but we can't even do that without a title. Our other option is to try to get the city to condemn/demolish them, but we'd like to try to salvage those that can be rehabbed.

Cumulatively, there's more than $20,000 in back taxes owed. We feel like the County should have addressed the issue 7 years ago, before the taxes and penalties exceeded the value of the homes. And because they didn't, we feel like they should reduce the amount in order to get them back on the tax roles, but they refuse. The person who says he owns the business that owns the homes is willing to obtain duplicate titles, but the tax office won't issue duplicates until all $20k in back taxes are paid. We feel like their negligence contributed to the situation and they're going to get nothing otherwise (if the city condemns/demolishes the homes), but they insist on the full amount. I feel like we're being held hostage by the tax office because if nobody will pay more in taxes than the home is worth, they will continue to sit on our property without generating any lot rent and while devaluing the park.

It also seems like some government agency would be responsible for maintaining a record of an individual responsible for a business name, particularly when a vehicle is titled in the business name, but thus far, we've been unsuccessful in obtaining such info.

Can anyone offer any insight on how we may resolve the title and tax info? State is GA.

Many thanks.

Thanks for your replies. We got a good deal on the park, though nothing like what you suggested. It's in a good location, has great infrastructure, and we believe it's worth the effort.

No lockouts...we only own the ground.

I contacted a local property management company, but (understandably), they didn't want to touch it until we get rid of the problems and have leases in place.

Since I posted, I rec'd a call from a friend who said the evicted tenant called her because the water was shut off and she wants me to have it turned back on. She said that when the Sheriff's office served the Writ, they told her she could continue living there until she found a place to move (which I don't believe). I called the Sheriff's office and the woman said they served the Writ, but didn't tell them they had to leave because I wasn't there. She didn't know if they told her they could continue living there or not.(!) I said I thought the Writ told them they had to leave. I called the Magistrate's office (they've been wonderful) and she called the Sheriff's office and got no where. So I called my attorney and he's handling it. So, we'll see...

Thanks again for sharing your input.

The park has 56 lots; 39 have homes. Some people have complied with our requirements; have been approved to stay; and have signed leases. We've done 6 evictions so far and will possibly have a lot more in the coming weeks.

Thanks for your thoughts. The park is in GA, though I'm in NC. We have an attorney who has guided us through the eviction process and I'll give him a call. The idea just came to me yesterday; I called the power company and they said, "no problem," but then called back this morning and said that as long as someone pays the bill, they won't disconnect. The judge gave me permission to remove the home after 10 days, which I pointed out to the power company. They said they'd disconnect it only if I was going to move or demo the home.

The Sheriff's office is serving the writs today or tomorrow. I'm just not convinced that will keep the residents (or others) off the property, especially since I can't change the locks. I thought lack of utilities would help.

Thanks again for the input.