Brother’s house in foreclosure and worse?

[gn]

>> the 1st is original and the 2nd was a method to get some cash out

It is likely that the 2nd is a recourse loan. Here is a relevant article:

http://www.ocregister.com/ocregister/money/homepage/article_1206268.php

[gn]

>> the 1st is original and the 2nd was a method to get some cash out

It is likely that the 2nd is a recourse loan. Here is a relevant article:

http://www.ocregister.com/ocregister/money/homepage/article_1206268.php

[NateK]

It took the lenders 10 months to get to this point!!! Geez!!! Is that the norm in California? With that much equity, I don’t know why this wasn’t foreclosed on a lot sooner by the lenders. I’m assuming with foreclosure rates skyrocketing, the time it takes a lender to foreclose on a home is only going to go up as well. This has got to be another reason why we’re not seeing the price declines most people were earlier predicting.

QuietCat-And even if you are able to buy it back. Does that mean your flakey brother gets to live there rent free. Ohhhh and not to get too personal, but where is your DAD in this picture. Because let me tell you, if I ever pulled something like your brother. My dad would have kicked MY ASS!!! Looks like your brother might need a good ass kicking to get rid of that Flakey Bug.

[NateK]

It took the lenders 10 months to get to this point!!! Geez!!! Is that the norm in California? With that much equity, I don’t know why this wasn’t foreclosed on a lot sooner by the lenders. I’m assuming with foreclosure rates skyrocketing, the time it takes a lender to foreclose on a home is only going to go up as well. This has got to be another reason why we’re not seeing the price declines most people were earlier predicting.

QuietCat-And even if you are able to buy it back. Does that mean your flakey brother gets to live there rent free. Ohhhh and not to get too personal, but where is your DAD in this picture. Because let me tell you, if I ever pulled something like your brother. My dad would have kicked MY ASS!!! Looks like your brother might need a good ass kicking to get rid of that Flakey Bug.

[Quietcat]

Ya know what radelow? I don’t give a flyin’ flip what you “buy”. For no reason other than your own ego you’ve determined it is your duty to bash my flakey brother. Whatever floats your boat, arsehole! Jeez, you really need to ask yourself what you got from your little tirade . . . Yes, I think my brother has messed up baaaaaad. If you want me to diagnose him as mentally unqualified to breath, then so be it, I still have no idea what you get from that :confused:

I never said I felt he was “entitled” to crap, but if I can help him pay off his creditors which is the honorable thing to do, then I see that has uh, err, honorable. Instead of me getting “real” I suggest you get a life . . . :rolleyes:

Thanks for your destructive criticism.

[Quietcat]

Ya know what radelow? I don’t give a flyin’ flip what you “buy”. For no reason other than your own ego you’ve determined it is your duty to bash my flakey brother. Whatever floats your boat, arsehole! Jeez, you really need to ask yourself what you got from your little tirade . . . Yes, I think my brother has messed up baaaaaad. If you want me to diagnose him as mentally unqualified to breath, then so be it, I still have no idea what you get from that :confused:

I never said I felt he was “entitled” to crap, but if I can help him pay off his creditors which is the honorable thing to do, then I see that has uh, err, honorable. Instead of me getting “real” I suggest you get a life . . . :rolleyes:

Thanks for your destructive criticism.

[Quietcat]

Nate,

We have different Dads . . . I am not sure how that is helpful either. This dumb flakey kid is 40 . . . Who said anything about rent free? That’s why we won’t buy it . . .

I am honestly only trying to determine if there is legitimacy in the 2nd’s position and whether there are any options for my brother. I have not condoned his actions, discussed his father, defended anything, yet some of you seem determined to Psychologically and Morally judge all of this. What the F is that about?

[Quietcat]

Nate,

We have different Dads . . . I am not sure how that is helpful either. This dumb flakey kid is 40 . . . Who said anything about rent free? That’s why we won’t buy it . . .

I am honestly only trying to determine if there is legitimacy in the 2nd’s position and whether there are any options for my brother. I have not condoned his actions, discussed his father, defended anything, yet some of you seem determined to Psychologically and Morally judge all of this. What the F is that about?

[Ozzie]

Quietcat,

Welcome to Piggington’s. A very happy and helpful bunch here. Not so much. I’d suggest a free consultation with a RE lawyer in your area. You’ll get professional advice without all the extra junk.

[Ozzie]

Quietcat,

Welcome to Piggington’s. A very happy and helpful bunch here. Not so much. I’d suggest a free consultation with a RE lawyer in your area. You’ll get professional advice without all the extra junk.

[Quietcat]

Yes, thanks gn and Ozzie, and the others with helpful info.

I have seen forum stuff go real destructive pretty quickly, but this was one of the quickest. The right thing to do quite a few months back was to get a re lawyer involved. He just gave us no indication that he was in this much trouble until it was too late.

Definition help please. I am reading above that it was too late once it was in Foreclosure. I guess I thought of Foreclosure as the process and a sale was the final straw. From my discussions with the holder of the 1st we could’ve easily thrown cash at it and caught him up or sold it prior to the “sale” date. Am I reading those comments or using Foreclosure incorrectly?

[Quietcat]

Yes, thanks gn and Ozzie, and the others with helpful info.

I have seen forum stuff go real destructive pretty quickly, but this was one of the quickest. The right thing to do quite a few months back was to get a re lawyer involved. He just gave us no indication that he was in this much trouble until it was too late.

Definition help please. I am reading above that it was too late once it was in Foreclosure. I guess I thought of Foreclosure as the process and a sale was the final straw. From my discussions with the holder of the 1st we could’ve easily thrown cash at it and caught him up or sold it prior to the “sale” date. Am I reading those comments or using Foreclosure incorrectly?

[(former)FormerSanDiegan]

Back to the facts –

Quietcat. I am afraid that most of the good advice requires action prior to the second lien holder taking possession of the property. Options included selling the property either traditionally or via short sale (if there was no equity).

If there is any equity in the house after the banks liquidate it (and accounting for costs of selling), then I believe that your brother is entitled to receive it.
However, it is likely to be zero or much smaller than he would have received if he had sold it prior to losing possession.

The previous comments about recourse loans are important. If the 1st is the original purchase loan, the “bank” cannot come after other assets if they are not made whole. If the 2nd was taken out after purchase, then the holder of the 2nd can legally come after your brother for the difference that they lose. If they make more from the sale than covers the 2 loans plus carrying costs (unlikely) then he gets the remainder.

Remember, that these costs include 10 months worth of back payments and penalties, plus interest, and any unpaid property taxes if the escrow account was depleted. These amounts can easily add up to 30-50K or more.

[(former)FormerSanDiegan]

Back to the facts –

Quietcat. I am afraid that most of the good advice requires action prior to the second lien holder taking possession of the property. Options included selling the property either traditionally or via short sale (if there was no equity).

If there is any equity in the house after the banks liquidate it (and accounting for costs of selling), then I believe that your brother is entitled to receive it.
However, it is likely to be zero or much smaller than he would have received if he had sold it prior to losing possession.

The previous comments about recourse loans are important. If the 1st is the original purchase loan, the “bank” cannot come after other assets if they are not made whole. If the 2nd was taken out after purchase, then the holder of the 2nd can legally come after your brother for the difference that they lose. If they make more from the sale than covers the 2 loans plus carrying costs (unlikely) then he gets the remainder.

Remember, that these costs include 10 months worth of back payments and penalties, plus interest, and any unpaid property taxes if the escrow account was depleted. These amounts can easily add up to 30-50K or more.

[Quietcat]

FormerSanDiegan,

Thanks for that. It sounds consistent with previous comments and makes sense although I am blown away that he is entitled to any profits if in fact there are any. Consumer protection I guess . . . Thanks again.

[Author]

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