All Forum Posts by: Robert Howell

Thanks Bill, I will let you know what transpires.

@Bill Gulley

My question is one of liability and responsibility.

I purchased a performing note through a broker ( not licensed ), which I now know was my first mistake.

The note came from a licensed fund. The fund sold the property with seller financing using a Land contract. In the purchase and sale agreement, dated in 2012, part of the agreement was that the seller would bring all taxes current to the sale date. These taxes were never paid by the fund and consequently when I approached the fund about paying the previous taxes, they told me that since I purchased the note, I did so with all responsibility for it.

I, on the other hand believe the taxes owing were and are the responsibility of the seller of the property.

Who is right?

@David Niles  I will be in Buffalo Thursday Oct. 30th and would like to attend your 7:00 pm meeting. Do you have a website?

@Bill Gulley

I believe this was a scheme of mortgage fraud. There was never a payment made on the KC property. The CA. property she had owned since 1996.

She admitted to me she took the money out of the KC property in 06 and "lent" it to somebody. This is a few months after she had set up the trust. She then, I believe, paid off the CA property which she had purchased for $450,000.00 and took a HELOC out on the property.

Here's the thing I find intriguing. I think she did this six times over and has gotten away with it.

By my estimations, she has potentially pulled $300 to $400,000.00 out of these properties. She has done short sales previously and I believe she is one smart cookie, or should I say one very daring cookie.

Btw I am planning to release the collateral in a short sale but not release the promissory note. The collateral will barely cover the realty fees and taxes.

@Wayne Brooks @K. Marie Poe

The property is in MO. The personal residence in CA. is owned under a Revocable Living Trust.

The trust actually pre-dates the financing on the Kansas City property by a few months (my error).

My suspicion on the fraud comes from the fact that she never made a payment on this KC property and four months later she put a $750.000.00 HELOC on the trust property.

One interesting added point is that I found five other properties owned by the LLC in the same area in KC. I don't know the status of the financing on those properties.

My dilemma is, can I go after a primary residence held in a Revocable Living Trust?

I bought a non performing note in Kansas City. It is an institutional note that was originated in 11/2006. Next payment due was 1/2007. This was an investment property. I believe the borrower cashed out the property. The property was purchased in an LLC, but the note was taken out in the borrower's personal name.

The investment property is virtually worthless but the borrower’s personal residence, in California, is worth 7 figures.

The problem is that four months after the funding of this note,the borrower, in 3/2007 put her personal residence into a family trust. That property has lots of equity.

Can I go after her family trust to recover the unpaid balance or has she been able to circumvent her obligation?

Nothing malicious here, it's just that someone continually sends out a form letter welcoming every single new member to BP. The problem with the extended greeting is that it contains my keyword and I end up with a with a ton of unwanted mail. Thanks for any help you can provide.

Dion,

To clarify; are you saying I can buy a performing second for 15% of UPB? And what would the equity position be for a note at this bid level?