All Forum Posts by: JD Ball

We gave our lease and the canceled checks to the previous owner (which she took and cashed 3 months into NOT owning the house) and the new owner (Wilmington Trust NA) never acknowledged us as landlord tenant nor occupancy and use yet we put all out rent into a separate holding account.

Why the bank would not sell to us, with the funds noted, is beyond us.  Mr Cooper Group seems to have some internal gravy train going on between <r Cooper and Xome even though the eviction attorney agreed to stand in place of Xome for us, effectively, and convey offers and terms between us and the bank.  We were told this was a cash on hand/in bank 60 days +/3-day close yet the attorney told us the bank accepted an offer and went into contract OVER 14 days ago and today, still pending and under contract.  With our lease through mid 2024 and the amount of litigation we could engage in, any flipper will find this to be a nightmare.  I guess we may have to "convince" a flipper to sell it to us in order to offload the liability quickly. 

@Chris - NYC/NYS has very good tenant law.  This could go on for years.......

Did you ever get a contact at Wilmington Trust NA?

Hi Kathie - Yeah, so it seems the case of a conglomerate (Mr Cooper Group) with so many subsidiaries.  No one knows who to contact and I got the runaround. I called so many people.  And the attorney repping the eviction did represent that he could receive and convey our offers to the client (Nationstar/Mr Cooper) but again, our first offer was simply "Rejected" after waiting three weeks and then our second offer was received by him on a Thursday and on Friday he emailed us to say "Oops, the bank accepted an offer on Wednesday and now under contract."  And from the start, we implored that we wanted to be able to match an offer.

But your advice on the investor is good. I don't think they will be too happy when they find out we have been here since 2016 and have a lease through next year.  Not to mention they have no idea of the true condition aside from seeing the exterior.  So it may work out to buy from them with a little bonus $ to walk away.  

Have you ever heard of a 3-day close?

The attorney wrote he is representing Nationstar/Mr Cooper so do you think he has no contact at Wilmington Trust NA?

And if he accepted, on behalf of his "client," our offers, then referral to a third party like xome is moot, isn't it?

Yes, but since we, as tenants, were served a 90-day through the bank's attorney, he agreed to accept and pass on offers to the bank.  Is the asset manager in this case Wilmington Trust NA to which Mr Cooper sold the property for $1 two months after they bought the property back on credit?  They are the REMIC.  No one told us to bid via a third party site. Our first offer of $1.4 was submitted Feb 7 and no reply until Mar 1.  Our second offer was submitted after waiting over two weeks for the exact documentation requirements, in the amount of $1.535 three weeks ago.  How can we find the right person to get this to?  The attorney seems incompetent and/or does have have the right contact

The attorney accepted and communicated our offers and thus we relied on him to do so. And in the 9 months since the bank bought the house back on credit, NO ONE has checked in on the property condition or issues. We as tenants have solely documented and paid for all issues like a broken oven, broken dryer, raccoons  and squirrels in the attic, exterminating, broken front door lock and gutter cleaning (200lbs of stuff removed - we weighted it).  A diseased tree is about to fall on the neighbor and the sidewalk is broken in two places.  Plus we had no heat for five days and paid $1400 for a heat circulator and $480 for its installation.  And we have still collected rent and placed it aside into a separate account.

Ok, so I have a unique situation here. We are long term tenants since 2016 in a 8-9BR 6000 sq ft house in a landmark district. We have lease through mid 2024. House was apparently in foreclosure proceedings for over 10 year. 2016 judgment in court but owner got a stay because of our tenancy and her promise to pay. Well, years go by, then covid and ultimately, goes on the public auction block with ridiculous reserve. Bank buys back on credit last summer. We have investors swarming but reveal nothing. We don't get notice until Oct. One thinks - why didn't the owner just do a short sale - well, her property manager was delusional and kept thinking she could sell the house for $2.3-3m. Yeah right, the house has two decades of deferred maintenance and 85 original windows, a 30 year old roof and we had 200lbs of leaves removed from gutters. Anyway, come January we get a 90 day notice. The house was passed on to a REMIC (Wilmington Trust NA). Provided our lease and all other docs to the eviction attorney, but we asked to negotiate with bank directly and buy the place. From August to March, they had the house up on Xome with over 9 failed auctions. We put in an offer in February with POF and attorney took over 3 weeks to reply with just "Rejected." We then said, well, what exactly doe the bank need? He took another two weeks to reply, 1) Sales contract drawn up by RE Attorney/broker, As-Is, 3-day close, funds in account 60 days plus. Ok, so we got the RE Attorney, put all together and submitted. And we actually submitted above the judgment amount. Though the house needs $1-1.5 in eventual reno, this could be done over time. So then we hear back from the attorney, "Oh, I was busy prepping for a case and hadn't seen that the bank accepted an offer and is under contract. Well, we checked xome and the final bid on the most recent auction that ended over a month ago was $1.5 or about $35k less than our offer. And here we are now 14 days after we were told about this (so what happened to the 3-day close?).

Anyone have experience with Mr. Cooper or Xome in REO? Anyone imagine why the bank would not want to sell to us the long term tenants as opposed to selling a liability of a fully-occupied house with lease to an investor-flipper in NY? Could it be the Mr Cooper Group internal gravy train to their Xome subsidiary so they get the broker fee? I even called Mr Cooper and talked to REO folks who wondered but they had no direct person to contact about this unique situation. Yet when I called Xome, they said that someone at Mr Cooper reviews and accepts/counters/declines offers. Shouldn't the REMIC and bank be seeking best possible offer? The reserve as we learned was $1.8, maybe it dropped into $1.75 right before the auction most recent. So it is possible the bank counter offered on the Xome $1.5 winning bid but, add in broker fee 5% and closing costs and fees and a full house ready to litigate for 1-2 years, plus the house condition/reno costs for a flip........doesn't seem like a wise risk for an investor as opposed to us, long termers who plan to stay for decades. Most buy houses from estates around here but definitely vacant. We are investors but for the long term!! We actually had our own appraisal done for our initial offer and the report noted a $300k encumbrance deduction off the total due to our tenancy/lease so we cannot see what any investor flipper might be thinking.

Advice?

Hi - we have been long term tenants in a house that was foreclosed by Nationstar/Mr Cooper. Ultimately the bank bought it back on credit in July of last year and our lease goes through June 2024. We happen to be in a unique position to buy the house cash. The attorney (eviction firm) who sent a notice to us said he would be able to pass along offers but he seems incompetent or does not have the proper contact. We put in a $1.4 offer and were told THREE WEEKS LATER - REJECTED. With no counter or comments. Then we asked, well, besides an offer letter and POF what does the bank require? He did not reply for more than 10 days. We got the list, hired a RE Attorney and submitted an as-is contract with 3-day close and offer above the foreclosure amount. A day later, we were told -sorry, the bank got an offer a xome auction (bid is under our offer and did not meet their reserve) and is under contract as of two days before. Apparently some investor/flipper but we are 9 people in a 6000 sq ft house, here since 2016 and with lease. The bank demanded a 3-day close yet now we are 13 days post when they went under contract so we are at a loss. I am not sure what investor wants a landmarked house with two decades of defferred maintenance and 85 windows as a flip - interior condition unknown and fully occupied in NY but hey. It is not going to turn out well for them. Why would the bank not want to deal with the long term tenants directly? We had also offered to match any offer though we top out at 1650000 cash