All Forum Posts by: Sven D.

My neighbor received a letter from the finance company informing him that in 60-90 days the foreclosure will occur and the home will be turned over to HUD. He has been given a chance to appeal for extra time to stay in the home for medical issues, which he will do given that he recently suffered two heart attacks and his wife has an autoimmune disease causing her to become slowly paralyzed. I have family that is willing to purchase the home with cash, but not for the amount the lawsuit is filing for. We will try to call again tomorrow, it's frustrating because we have both tried calling the servicer multiple times for months and cannot get anybody to speak with us.

Thank you for your reply. The first time I tried contacting them I was on speaker phone with my neighbor in the room and he verified his identity to them and asked them to speak with me. That seemed to appease the phone operator until I asked to speak with an account manager about buying the home and he told me that's handled by the REO department. I will try an authorization letter. Is this usually a formal document that each lender has their own version of or is it something I will have to draft up and have him sign to send in?

Good afternoon,

I am trying to buy or assume my neighbor's home loan from, what looks like to me, a sketchy finance company. Originally we thought they were just the debt collector but they served him papers for a judicial forclosure claiming he owed them almost double what was remaining on his principal due to back taxes and home insurance payments that I highly doubt they have been paying. My neighbor declared bankruptcy about 4 years ago and thought that the house was no longer his and planned on living in it until the sheriff came to kick him out. I should mention he is a very nice old man who gives up easily, so when he tried sending mortgage payments to 3 different companies and had his checks returned he gave up. I went with him to his lawyers office who helped him with the bankruptcy and he said that my neighbor has until the sheriffs sale to sell the home or move out, implying to me that he could still sell the home.

We tried finding out who serviced the loan and who owned the loan through our county records department and even they said that the chain of custody of the loan was unclear and unfinished, likely due to the fact that the title company, servicer, and mortgage company that owned the loan all went bankrupt within the last 10 years. Now this finance company is proceeding with a judicial foreclosure and have sent letters stating their intent and have even left a name on the bottom of the letter with no phone number or email. I have also tried calling the lawyer that's representing the finance company from out of state and left a voicemail saying I want to reach somebody with authority with the finance company they are representing so I could buy the home, but I received no reply. When I call the finance company I get their main call center who sometimes cannot even find my neighbors property in their system, other times they can. I tell them I want to purchase the home at my neighbors address and they tell me I need to go through their REO department who 'have no phone number' and must be contacted by email. I have emailed multiple times with no reply, and have called the call center multiple times asking to be forwarded to their REO department with no luck. I'm trying to reach an account manager to negotiate a sale price, what they're claiming is owed is more than the market value of the house.

I should also mention that my neighbors lawyer seems to think that he is no longer eligible for our state's foreclosure avoidance program because they never went and got help years ago when the finance company would have sent them letters for it. I won't make excuses for my neighbor, he just tells me he thought it was no longer his home to  save after the bankruptcy anyway.

Can anyone think of anything else I could do? Long story short, my neighbor wanted me to assume his loan at 180k but would also be wiling to sell me the house if I could get the finance company to agree to a short sale, but they won't talk to us.

Thanks for reading.

@Edmund Ricker and @Shane Baganz what are your thoughts on incorporators such as 

https://www.incfile.com/form-order-now.php?entityT...

https://www.legalzoom.com/business/business-format...

the $250 option from incfile includes filling out the operating agreement, which is the only part of the process I am unsure of. Do you feel that these services are worth what they charge? Or are they charging for the easy work and still leaving you to figure out the difficult stuff that ends up costing money. Let me know your thoughts, thank you.

Good morning,

I'm looking at using a hardmoney lender on purchasing a home that I will use as a primary residence while I rent out the remaining rooms. Eventually I will sell the home. This hardmoney lender only loans to LLC's. Oregon has a very easy LLC forming process, my question is, if I form an LLC to begin the application process to acquire a loan, will my personal taxes be negatively affected this year? Or become overly complicated? The LLC will not be showing profits because I'm using it to acquire a property that I would hold for a minimum of 6 months. Any insight would be helpful.

Thank you.

@Jay Hinrichs and @Sean OToole thank you for the help, I was lost looking at the wrong ORS.

Jay, do you have any recommendations for lawyers in the Portland area that specialize in real estate or foreclosure? I would like to take your advise and have a lawyer draft a contract and mailing letter that complies with the law but don't know who to go to or if I'm over paying. I started with a generic google search and was quoted $300 an hour. Is this a standard fee? Does it vary lawyer to lawyer? How many work hours do you think would be appropriate to be charged to meet with a lawyer and have a contract and mailing letter drafted?

@Jay Hinrichs I'll keep digging, so far I can't find guidelines for actually contacting pre foreclosure homeowners. I looked on the real estate commissions web site and didn't find anything helpful. It seems bizarre to me that you can't just write someone a letter saying 'Hey I want to buy if you want to sell'. 

@Jay Hinrichs I did some searching and found this OAR page.

and OAR 863 015 0125 deals specifically with advertising. The first two lines read:

(1) As used in this rule, "advertising" and "advertisement" include all forms of representation, promotion and solicitation disseminated in any manner and by any means for any purpose related to professional real estate activity, including, without limitation, advertising by mail; telephone, cellular telephone, and telephonic advertising; the Internet, E-mail, electronic bulletin board and other similar electronic systems; and business cards, signs, lawn signs, and billboards.

(2) Advertising by a licensee, in process and in substance, must:

Line two makes it seem like regulation is applied if you are advertising as any form of real estate professional. I'm concerned because I sent out 100 letters but I did not represent myself as a professional. I'll probably go speak to an attorney and report back.

@Jay Hinrichs do you happen to know what those regulations are called? I tried multiple google searches but nothing regarding regulation is coming up.

Hello,

Oregon offers two financing options for first time home buyers found here. I'll briefly outline them below.

1. Up to 3% down payment assistance that requires no repayment and a rate of 3.375%

2. No down payment assistance but a rate of 2.875%.

If I understood the brochure correctly neither one have a pre-payment penalty and both can be amortized over 15 or 30 years. My target home purchase price is around 200k, which, admittedly, is extremely difficult in the Portland metro area on a home that doesn't require cash or rehab. At this price point my 3% assistance would be $6,000 effectively making my loan $194,000, however, I'm not sure at what point the lowered monthly payments from option two are better than the up front cash. Anyone have thoughts on this?