All Forum Posts by: Michael Morrongiello

Thank You Jay - much appreciated

Seeking as a REFERRAL an experienced COMPETENT foreclosure Attorney - Penobscott County MAINE area who will work with us as CREDITORS to take back possession of a property which has a NON performing 1st lien mortgage on it. The property is occupied by an unknown party and the loan has not performed in many years. 

What Happens to the Sellers After the Non Judicial Trustee’s Sale- IF they remain in their home?
Property is in CALIFORNIA
Situation; Residential owner occupied home went to Trustee Sale and a 3rd party Bidder was the SUCESSFUL Bidder at the sale and awarded the home when they record their Trustee Sale Deed.

The Now Foreclosed owners are Still in poesession of the home and living there.

Q - What is the occupants status now considered? Squattters, Tresspassers, etc.
Q- In a NON Judicial Foreclosure process (Trustee Sale) do they former owners have any REDEMPTION RIGHTS?
Q- What rights does the NEW owner who just acquired title via the Trustes Sale have to GET THEM OUT?
     (already familar with a CASH for KEYS and poesession offer that can be made to the occupants)
So What else can be done?

What Happens to the Sellers After the Non Judicial Trustee’s Sale- IF they remain in their home?
Property is in CALIFORNIA 
Situation; Residential owner occupied home went to Trustee Sale and a 3rd party Bidder was the SUCESSFUL Bidder at the sale and awarded the home when they record their Trustee Sale Deed.

The Now Foreclosed owners are Still in poesession of the home and living there.

Q - What is the occupants status now considered? Squattters, Tresspassers, etc. 
Q- In a NON Judicial Foreclosure process (Trustee Sale) do they former owners have any REDEMPTION RIGHTS?
Q- What rights does the NEW owner who just acquired title via the Trustes Sale have to GET THEM OUT? 
     (already familar with a CASH for KEYS and poesession offer)  So What else can be done?>

That is also my understanding as well

The junior 2nd lien gets wiped out

ANYONE Experiencing THIS SAME situation -We may see MORE of these moving forward in the Inflactin dirven Bidenomics Paycheck to Paycheck Economy

This property is CA - Estimated ARV $525K to $550K +/-

1st lien was modified several times (TWICE) to TRY to keep the Debtors in their house. They were chroniclaly late and behind on their 5.125% interest rate $363K 1st lien FHA Loan obtained 6-14-2018 which had paid down to around $318K. A FORMAL loan Mod done 9-16-2020 (But NOT recorded until 6-9-2022) reduced their rate to 3.375% to be REAMORTIZED over 360 Months.

Looks like HUD took back a SUBORDINATE 2nd lien in the amount of $101,500 dated 9-16-2020 (Recorded 6-9-2022 at the same time as the Loan MOD was formally recorded)

BUT they fell behind AGAIN so then another Loan Mod was done on 4-14-22 (recorded 7-15-2022) which reduced the Interest Rate lower to 3.125% to be REAMORIZED again over 360 Months.

They fell behind and the 1st lien LENDER filed for NOD and NTS - Notice of Trustee sale and it went to the TRUSTEE SALE X-XX-2023 where the property was SOLD to a Third Party BIDDER for $375,000

I assume under this SCENARIO - the 3rd PARTY bidder who purchased the property at the Trustee Sale Auction 8-23-2023 was buying the property involving the action being BROUGHT to the TRUSTEE SALE AUCTION by the 1st lien DOT lender and that the SUBORDINATE $101,500 2nd lien Held by HUD may have received any (some) OVER BID funds but utilmately was WIPED OUT at the Trustee sale Auction...
Thus their 2nd lien Goes away...

Do not believe that the SUBORDINATE DOT lien to HUD survives the Trustee Sale unless they BID to protect their juinor lien interest.

Thoughts ????

Experiencing the SAME situation - now years later after this initial post and suspect we may see MORE of these moving forward in the Inflactin dirven Bidenomics Paycheck to Paycheck Economy 

This property is CA - Estimated ARV $525K to $550K +/-

1st lien was modified several times (TWICE) to TRY to keep the Debtors in their house. They were chroniclaly late and behind on their 5.125% interest rate $363K 1st lien FHA Loan obtained 6-14-2018 which had paid down to around $318K. A FORMAL loan Mod done 9-16-2020 (But NOT recorded until 6-9-2022) reduced their rate to 3.375% to be REAMORTIZED over 360 Months.

Looks like HUD took back a SUBORDINATE 2nd lien in the amount of $101,500 dated 9-16-2020 (Recorded 6-9-2022 at the same time as the Loan MOD was formally recorded)

BUT they fell behind AGAIN so then another Loan Mod was done on 4-14-22 (recorded 7-15-2022)  which reduced the Interest  Rate lower to 3.125% to be REAMORIZED again over 360 Months. 

They fell behind and the 1st lien LENDER filed for NOD and NTS - Notice of Trustee sale and it went to the TRUSTEE SALE 8-23-2023 where the property was SOLD to a Third Party BIDDER for $375,000

I assume under this SCENARIO - the bidder who purchased the property at the Trustee Sale Auction 8-23-2023 was buying the property bering brought to sale by the 1st lien DOT lender and that the SUBORDINATE $101,500 2nd lien Held by HUD may have received any OVER BID funds but utilmately was WIPED OUT at the Trustee sale Auction...

Do not believe that the SUBORDINATE DOT lien to HUD survives the Trustee Sale unless they BID to protect their juinor lien interest. 

Thoughts ????

Jay- good thought but this is an OWNER OCCUPIED residence - thus they are CONSUMERS and lending to distress consumers who cannot show or demonstrate any ability to REPAY the debt is DANGEROUS as once you take their feet out of the fire - the pain stops (at least momentarily).

In this case these homeowners have an HISTORIC track record of NOT paying their mortgage time and time again over the years to where the lender who is foreclosing had to already not ONCE but TWICE due loan Modifications for them and also set aside substantial funds from past arrearages they COULD NOT pay by taking back a Subordinate 2nd lien as on their residence property ...

Not someone I would want to advance more funds to UNLESS - I am able to GET TITLE

Good Thoughts David - yes a BK filing if done in time will STOP all credit collection action and likely could be used to POSTPONE the Trustee Sale or delay it.

These property owners were hesitant to file BK because they have grand plans to once again in the future BUY another home and did not want the effects of the BK filing to haunt them

Q- If one files an Emergency Bankruptcy Filing - I assume they can later on CHANGE their mind and NOT follow thru with the Bankruptcy ?

Chris

The sale is IMINENT - I don't want to fork over $35K to bring their loan current (which I can do)
and then have it go to Trustee Sale. I also have to DEAL with as stated CALIFORNIA LAW - more specifically CA 1695 - the Home Equity Purchase Act - This is a law in CA design to PROTECT property owners in distress and allows them to have a 5  Day Cooling off period of time after entering into a special Home Equity Purchase Agreement to RESCIND any agreements signed by them or otherwise. A Buyer MUST follow the law to the tee in order to insulate themselves from exposure.

Its carries with it a VERY punitive push back if violated;
The property owners can come back on YOU (the buyer) for to TWO YEARS After the sale
and rescind IF they were not given proper notice at the onset. They can also seek Double Damages.