All Forum Posts by: Vania Castillo

Welcome to the BP community Hans!!

Welcome to the BP family and best wishes in your transaction in Augusta, Xavier!!!

I have sold a properties using owner financing and like because they can be a win-win situation.  The new owner gets the property without too much hassle (like when getting a mortgage from the bank) and I continue benefiting from the property getting my interest and deferring the taxes in the profit from the sale. 

I agree with you doing a credit and background check is very important to avoid problems down the road.

@Chris Seveney Sorry I confused you so much! I was very stressed out about this situation, but hope things are getting back on track.  I did not get any news today.  

I'm the lender and have problems with my borrower and owner of the property that I sold to him with owner financing holding two notes.

Thank you sooooo much guys for all your support!!

It was really helpful to bounce ideas with you all since it seemed that the situation was stalled due to his lack of cooperation.

As @Ned Carey said, I'm starting to get a handle on the situation.  Today, I learned my lender (owner of the property) is going to finally take charge of the situation and file a petition to quiet the Title and got the Title commitment showing the defect. As @Tom Gimer said it involved a defect in the original tax sale foreclosure "Interested parties were not named in the Collector's deed recorded in the Books, though named in the Collector's deed and one as one person was named incorrectly".

Indeed, msy hand were tied without his cooperation.  I did not know the specifics of the defect and could not supply the documentation to support my claim to the Title insurance.  

He claimed, he could not write the letter or do anything, because he does not speak English (excuse!).  That's the reason I wanted to help filing his claim, but he did not take my offer.  Anyway, I filed my claim when I realized we would not do anything, but had difficulty getting documentation from him to support it.  

The transaction was for business purposes. He lended the money under his LLC with the intention of adding value to the property, refinance the property to pay back the loans and then flip it later on ( it became a 2 year flip!)

Thank you again to all of you for your advise and support!

I'm hoping for smooth sealing now on....

Thank you so much guys for our input!

@John Underwood I'm going to file a claim with the Title's Insurance, since borrower is not going to do it.

@Peter Walther In effect, when I purchased the property via tax deed, I did not get a policy.

I and my borrower paid for Title's insurance.  I convayed Title via QuitClaim Deed. I hold both mortgages and my borrower is trying to refinance for a higher price after forcing appreciation by building another unit to make it a triplex.

@Ned Carey I see the obvious answer, but unfortunately, my borrower is not doing anything, but "waiting for me to fix the problem".  I even told him that since we bought the Title's Insurance from the same company, we could file a claim together and he gave me a cold shoulder.  As I mentioned, If I foreclosed on him after my notes mature again ( I gave him 2 extensions already) and take ownership of the property back...I will find a way to fix the problem. 

First of all let me find out what the cloud is all about.  My borrower is not going to do anything.  Should I write him letter and give him a fair warning telling him that is his responsibility to deal with the matter, and his refusal could lead to a foreclosure if he does not pay me back when the notes mature?

Hello Teryn,

BP is a good place to start.  You could check the forums as other people have asked for referral for CPAs also and now with technology your CPA could be anywhere as long as he/she is familiar with the regulations in your jurisdiction.  

I tried to find out where you are located, but could not identify it.  Adding a little introduction to your profile makes it easier for people to guide you.

Welcome to BP Augustus,

Use your unfair advantages of how houses are built and function and how to run a business to jump into your next adventure!

Listen to the Podcasts here and ask questions.  This community is here to help you and encourage you.  It will be times of doubt and fear, but don't let those times discourage you.  Perseverance is key.  R.E is very forgiving and if you persevere, you will succeed!

Hello BP community!

I'd like some advise with the following Title problem:  Three years ago I foreclosed in a tax lien and became the owner of the property.  I sold it with seller financing and insured the Title with no problem.  As a matter of fact I got a second note on the property and no problems with the Title were found.  Fast-forward, two years later at the time the borrower wanted to refinance and the same insurance company that had previously insured the Title claimed that the Title is "clouded", so the new owner (my borrower) can't refinance and pay me back.

I spoke to the lawyer who did the foreclosure and he assured me that the Title has not problem and the reason it was rejected by a second insurance company was because once one company rejects a Title, no one wants to touch it. He said that I would win in Court if I take my borrower to foreclosure.

In order to "cure" the Title a new foreclosure must be done.  This is my dilemma:  This property is not longer mine, but the owner wants me to pay for the new foreclosure, even thought that the he is the one bringing the petition and the judgement will be on his name.  These are the options I see on the table:

1.-  I could do nothing, wait for the note to mature, foreclose in my borrower and "cure" the Title after the property is mine

2.- I could split the cost and pay for 50% of the cost of "curing" it or 

3.- Offer to pay 100% of the cost to allow him to close, with the condition that he pays me back at closing.

Please, I love to hear your input about the right thing to do and don't want to be taken advantage.  I want to be fair to him.  Thank you in advance! 

Thank you for the additional information @Don Konipol.