All Forum Posts by: Tom Gimer

Just re-read -- appears accurate. I thought he was mistaken on his primary/investment situation. 

Having a friend move in with you didn't transform your property into an investment property.

So you believe the foreclosure has already occurred. 

If the bank now owns it, it's because they (the lender in first position) conducted a foreclosure sale and they were the high bidder -- they bid in at the existing first mortgage balance and no interested buyers outbid them.

It's now a bank-owned property (REO) and in all likelihood will be listed with a local broker. Keep an eye on listings or get a contact in the REO department at Chase.

A couple things I think are worth adding here...

1. The PAR contract (and every REALTOR association contract I've ever read) refer throughout to the "broker" or "brokers" representing the parties... of which there will likely be none in this deal and in fact most of the deals discussed on this site. That's a potential problem because these types of things create unanswered questions when things go bad. Don't just use forms, review them and amend as necessary.

2. At some threshold (dollar or comfort level, etc.) there should be someone involved who, when things go sideways, has the insurance coverage in place (E&O or otherwise) to respond when something major gets screwed up.

3. Glad I found a thread you were involved with @Steve Babiak

Yes, the buyer ultimately pays them because the lender who is selling short isn't bringing cash to the table. Just factor a chunk of $ going to the condo association first. Figure out the monthly (in DC some condo dues can be shocking) and multiply it by at least six. Then consider in connection with a short-sale that dues, fees and costs beyond those six months would also be a junior lien that would need to be negotiated with as well. 

Junior lienholders are given notice of the pending foreclosure so they can protect their interests if they so desire -- they aren't named. Check the docket and find the list of who was given such notice. Review and confirm that all junior lienholders were given notice in accordance with the law. If not, their lien(s) will not be extinguished.

Condo fees have super lien priority in DC. That $17k+ will be paid in full by somebody -- likely lender #1 to protect its interests -- before the condo is transferred to a new owner. 

@Ayodeji Kuponiyi For starters, the interest rate. But read those terms carefully and you'll see that you aren't dealing with a lender at all... you're dealing with a moron.

@Ayodeji Kuponiyi You'd be insane to proceed with this "lender".

You won't know for sure until your $3,600 disappears but this sounds like the typically hard money scam.