All Forum Posts by: Pat P.

Dan, when you recommended I ask an attorney for advice, I forgot that some states do use attorneys for escrows. In your state they may. We don't typically in California. Instead we use escrow companies or escrow departments within title companies to handle closings.  In fact it's rare to see attorneys involved in simple residential or land transactions here.  

 Wayne, thank you for your comment. Title companies won't always offer title insurance on title derived by sheriff deeds so it's risky to the deed unless you know up front you can get it.

 I'm still hoping to get an answer to my question on how to calculate the reinstatement amount that also coincides with the payoff calculations. Thanks all.

Hi Dan, thanks for you comment.
Yes, the HOA got their title from a judicial foreclosure and a Sheriff's Deed. They will find it hard, maybe impossible to get title insurance. Insurers do not like sheriff sales because of all the possible defects that can make them invalid. I told the HOA today if they can't provide a title policy with the deed, I will have to foreclosure.

This is vacant land and yes, I have advanced monies for property maintenance, inspections and weed abatement. I have been paying the property taxes for years. All this goes to advances charged to the balance.

Thanks Dion for answering! And for your generous offer to help sans cost!

I did my own calculations with TValue (time value software) to prepare my own Payoff statement and got $86,268.29 including $858.42 for late payments (57 x $15.06).

You said "273 payments at full P&I would be a reinstatement not a Total Due. "
These were interest-only payments, there was never any reduction of the principal.
Would that change your figures? 

Yes, the $69,008.05 was for reinstatement= (275 x $250.94 interest-only payments= $69,008.05)

How can that figure be correct?
Lets pretend its 275 payments, not the 273 you said, because the difference is nominal.
Please explain how reinstatement could be as high as $69,008?

If the trustor reinstated today and paid $69,008.05 to bring the loan current and then tomorrow decided to pay off the loan in full  which require paying off the principal balance of $30,000, that would total more than $100,000 [$69,008.05  + $30,000 = $100,000+).
Whereas the payoff statement only requires $86,279.02. PLEASE explain this, it's driving me loony. And if this is wrong, how do you calculate the reinstatement figure? Can you please
show the formula (in English, not algebraic).

Also I got thrown off by your per-diem interest figure of $202.05?
The trustee's per diem was $6.67a day, mine was $6.63 a day.

What amortization software do you use?

Mystery solved: California  :)

I like elephants but want the focus on the tough part -the calculations.
Attorneys don't learn loan processing in law school and few have hands on experience with it.
Consulted with one to no avail.

And today's lenders depend on very specific and very automated software that only suits their narrow parameters.  This stuff is becoming a lost art.  I did a search and know Dion has answered questions on this topic. Actually that's why I joined this forum. I hope he will answer.

Thanks all for your responses! Much appreciated!

Please DO NOT raise statute of limitations issue. I put that in my post, thanks

I want to foreclose on an old note. Willing to pay $100 for best answer to all questions asked below to show appreciation for your time.  Please DO NOT raise statute of limitations issue.

Questions are bolded below: basically requesting calculations for payoff, NOD reinstatement amount and projected Notice of Sale amount or formula so I can calculate when I know the date of sale - in English please, not algebra equation please!) I can fax you the note and my amortization schedule. Here goes:

Terms: Loan of $30,000 made September 30, 1993 at 8%.
Installments starting November 4, 1993 until October 4, 1998,
Entire unpaid principal balance and unpaid accrued interest become due in full.
Note shall continue to bear interest after breach.
There is a late charge of 6% of monthly installment if made 10 or more days late.
Should default be made in payment of principal or interest when due the whole sum
shall at option of holder be due. Interest after default shall be at same rate.

Payments were made as follows:
12/14/93 $250.94
01/09/94 $250.94
02/07/94 $250.94
03/22/94 $250.94
04/24/94 $250.94
05/26/94 $250.94

Advances made:
1- 07/14/94 $350 Notice of default
2- 02/27/17 $50recording fees
3- 4/22/17$15notary fee sub of trustee

Late fees
$858.42 (57 payments x $15.06) from 7/4/94 to 10/4/98 maturity date

Trustee Fees: $1,574.75

A notice of balloon payment was served on 3/31/17

Questions:
1) Can this loan be foreclosed on just the interest-only payments
from June 1994 to present to avoid waiting for 90-day balloon notice to mature?

2) If “yes” to #1,what is correct amount to put on NOD as reinstatement amount?
A trustee came up with this: $69,008.50
This was calculated as follows:
275 payments x $250.94= $69,008.50 The payments starting 6/4/94 up to4/10/17
Please provide a per diem if relevant.

3) What are correct amounts for a Payoff Statement?
Trustee also issued a payoff as follows:
$55,160 accrued interest from 5/4/94 to 4/28/17
$30,000 principal balance
They then added advances plus trustee fees (shown above) for a total of $88,008.17
I came up with $86,268.29, see amortization schedule.

Please provide a per diem if relevant.

4) How do you calculate the figure for the Notice of Sale? (even if sale date not known at
this time).

5) If foreclosing on interest-only payments is not advisable, please provide same info
for standard foreclosure on entire loan/principal/interest for 1) NOD reinstatement, 2) for a Payoff Statement and 2) formula to calculate demand on Notice of Sale.

6) If foreclosing on interest-only payments is not advisable, please provide same info
for standard foreclosure on entire loan/principal/interest for NOD reinstatement, for a Payoff Statement and formula for Notice of Sale.

A HOA has recently foreclosed and hold title through sheriff sale. They have offered their deed
but what are the liabilities of accepting it in lieu of foreclosure? HOA fees? Hard to insure title insurance? There are no other liens on property but current HOA liens from time they foreclosedu
to present.

Can you help?