if it comes down to it, can you stop making your payments ?

Any upside for you as far as equity goes in that scenario?

If I stop, my banks foreclose on me which forecloses on them as well but I lose all the money I have paid. If I can foreclose them and sell I can make the profit that would go to them if they sold it or all I am looking for is to break even.

The absolute worst thing to do is not pay the loan if you can. It will cost you years of bad credit, higher costs and prevent a new mortgage. At least a good mortgage.

Sounds like you have a good plan as is.

You'll be hard pressed to sell the note anywhere near $400k. You have an offer in this thread. I don't know what your underlying note balance is but can confirm the person behind the offer is legit and I've done a lot of business with him and his crew. I'd say it's at least worth reaching out.

If I can get the foreclosure to go through in November I will sell the house not the note. If they keep dragging it out I will have to look at all my options which may be taking a hit on the note.

Cooter00 said:

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Hate to break it to you, but they are likely just playing you. "Selling" the house just another way to drag you along with no payments.

Keep trying to foreclose.

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This. Don't know the ppl but doesn't sound like something a person currently living for free would do...

A little update: Apparently he had an offer from an investor and then the investor came back and said he noticed it was in foreclosure and reduced the offer by 80k. The occupant said that is how he found out it was in foreclosure even though my lawyer sends certified and normal mail of the notice. He then said he would make the November and December payment for the house to go through the sale. I told him it was too late for that and the sale needs to happen before November 1 or it is going to be foreclosed. His last text was guess we are going to let the attorney's work this out. I emailed my lawyer as a heads up. We shall see how this pans out.

The house is set for foreclosure today. The husband called around 730pm yesterday and brought up doing a deed in lieu. He wants three months to try and sell the house and if it hasn't sold he will hand over the keys.

If I stay with the foreclosure he is going to file bankruptcy and it will be drug out for that process.

Any thoughts about going the deed in lieu option?

I agree. Right now I am trying to determine if he is actually represented and will be able to stop the foreclosure or if he is bluffing about filing bankruptcy. If he is bluffing, then I would prefer to go forward with the foreclosure but if he is going to file bankruptcy this could go on for the next 5 years and the deed in lieu option would be the better option.

Nothing like waiting until the last minute to work something like this out.

Can he really delay things that long by filing BK?

Thanks for your suggestion. I have emailed my lawyer asking for the time of foreclosure to see when I actually need to make the decision by.

When I asked him about the deed in lieu option, it seems this forfeits any rights he has to file bankruptcy or even the need to file an eviction for him to be out of the house in 3 months. This is the only information making me hesitant on proceeding with the foreclosure. The way I am picturing it is, in 3 months I would be done with the the owner either by him selling the property or him just walking away. If proceeding with foreclosure possibly it could be years.

He is going to file Chapter 13 which puts all of the included debts in bankruptcy on a 5 year payback plan. This is the option they have chosen the previous times, of course they didn't continue making the payments so they were dismissed.

Wow. That seems crazy.

Last minute is when most legal settlements occur.

You are in a game of brinksmanship. You should already know your squeal point on this deal. Settle for things above your squeal point. Refuse to settle for less than your squeal point.

Follow your attorney's advice as they know the facts much better than we do. The rest of us are just guessing.

In my lawyers email he stated "it is up to you". I did reply back this morning asking what he would do in my situation. Waiting to see his response.

I have also read when doing the deed in lieu option, I would assume all liens on the property. There is a $1200 a year HOA that I doubt he is paying but I do not know for sure if he has been paying. I plan to call them when they open to see if I can get an answer about that.

Sounds like you are on the right track. Last minute deals are always stressful.

I would spend your time before you hear back from him on what you must have out of this deal and when. That is your squeal point. If you spend the right time figuring out your squeal point, negotiating at the last minute gets a lot simpler.

Above the point, settle. Below the point, refuse.

Most of the stress is created by not having spent time on the squeal point on what you have to have out of the deal in order for you to be satisfied. It could be a dollar amount. It usually includes time spent and stress.

Figure that part out and your next step gets easier.

Just a few quick questions for you: How many agreements has the other party already broken? Will this deal be different from the other agreements with this party?

I have filed foreclosure 5 times previously. 3 times he filed bankruptcy (all dismissed due to paperwork not being filed, and/or payments not received). The other two times I made him pay 2 months of mortgage to stop the foreclosure. He does what needs to be done to stop the foreclosure, then stops making payments. Since December of 2019, he has made 12 out of 37 payments.

You have the facts on his agreements. What is missing is how much you want this to be resolved and the financial impact to you in either case?

I think you know what you want to do already. There is no perfect answer. Make a call and protect your assets.

A real sticky situation. Sorry dude. Above all, go about your decision making process with the idea that they are not trustworthy. And it seems like if your foreclose and they file bankruptcy, history would prove that they won't perform on filing the necessary paperwork for the bankruptcy to be honored.

Definitely find out about the hoa dues, and, yes, I doubt they have been paying. Even if you decide to foreclose knowing this information about the property is helpful.

I think I would continue to pursue foreclosure. Doing deed in lieu puts the ball somewhat in their court because they have a part to play in that and can stall you further.

Well lets just say it is now one cluster f....So this morning the borrower deposited a payment for November to stop the foreclosure. I sent lawyer text and email to cancel the foreclosure. Haven't gotten any response. The borrower keeps calling me asking if I have heard anything and unfortunately I have not. So now he is going to file to stop the foreclosure. As it currently sits, I don't know if the property went to auction or canceled and i don't know if the borrower made it to the courthouse to file.

Sorry, dude. Genuinely sorry.

Contact itsyourboypookie I bet he knows the game better than your scumbag buyers.
Maybe there's a way for this to be worth his time and yours.

"Long story short, they didn't pay any of 2020 and most of 2021 and havent made a payment since May this year. I have filed foreclosure 4 times since 2020. The first foreclosure was put on hold due to covid and they filed bankruptcy 3 times and the judge stopped the foreclosures. All three bankruptcies have been dismissed due to paperwork not filled out and for not making payments."

Ugh! How can one payment considering the above details prevent the foreclosure from going through? Still plenty of grounds to warrant a foreclosure.

any update?

Saw thread bump up to the top so was curious as to what recent happenings were.

Well I haven't heard anything from my lawyer or the occupant so as of now foreclosure still happening tomorrow. It has been a 1pm auction the previous times so have to wait until the afternoon to see if it goes through.

Where's the property?

Montgomery County.