Brother’s house in foreclosure and worse?

[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.

[(former)FormerSanDiegan]

Quitcat – You are right that foreclosure is a process and many things can be done prior to a sale. Now, since the 2nd TD holder currently owns the property and it presumably went to auction, in which case the 2nd TD holder purchased it, you still might be able to buy the property or make some other deal with the 2nd note holders, which could include making the 1st TD holder whole again. However, you are in a tougher position than prior to the sale.

I would consider trying to construct an offer (if the property is worth it) with the 2nd TD holder. If the property is worth less than 110% of the amount owed, I would let it go.

[(former)FormerSanDiegan]

Quitcat – You are right that foreclosure is a process and many things can be done prior to a sale. Now, since the 2nd TD holder currently owns the property and it presumably went to auction, in which case the 2nd TD holder purchased it, you still might be able to buy the property or make some other deal with the 2nd note holders, which could include making the 1st TD holder whole again. However, you are in a tougher position than prior to the sale.

I would consider trying to construct an offer (if the property is worth it) with the 2nd TD holder. If the property is worth less than 110% of the amount owed, I would let it go.

[no_such_reality]

Remember, that these costs include 10 months worth of back payments

What is interesting is it sounds like the 2nd took possession through foreclosure and then failed to make the 1st solvent and will in turn have the first lien foreclosed losing their interest.

I suspect a judge will say tough cookies to the 2nd holder for any recourse since the 2nd failed to liquidate the property in a prompt fashion there by potentially rectifying any short fall. Essentially, the 2nd’s interest may get liquidated if they let the first foreclose.

[no_such_reality]

Remember, that these costs include 10 months worth of back payments

What is interesting is it sounds like the 2nd took possession through foreclosure and then failed to make the 1st solvent and will in turn have the first lien foreclosed losing their interest.

I suspect a judge will say tough cookies to the 2nd holder for any recourse since the 2nd failed to liquidate the property in a prompt fashion there by potentially rectifying any short fall. Essentially, the 2nd’s interest may get liquidated if they let the first foreclose.

[Anonymous]

Guys, guys,
Let’s not judge Quietcat or his brother. Getting hostile with accomplishes nothing. I like the fact he is sharing his brother’s story. Thanks Quietcat. I’m intrigued by stories like this and want to know how people get themselves in this position. I’ve asking myself for the past 3 years –> “who could possibly afford to buy house at these prices?”. Hearing stories like these help understand how and why the housing boom is unfolding.
Quietcat, my advise is don’t get sucked into your bro’s financial issues –> you’ll probably get burned and he’ll lose the house anyways. He’s probably better off if he just lets it go.

[Anonymous]

Guys, guys,
Let’s not judge Quietcat or his brother. Getting hostile with accomplishes nothing. I like the fact he is sharing his brother’s story. Thanks Quietcat. I’m intrigued by stories like this and want to know how people get themselves in this position. I’ve asking myself for the past 3 years –> “who could possibly afford to buy house at these prices?”. Hearing stories like these help understand how and why the housing boom is unfolding.
Quietcat, my advise is don’t get sucked into your bro’s financial issues –> you’ll probably get burned and he’ll lose the house anyways. He’s probably better off if he just lets it go.

[(former)FormerSanDiegan]

Good point n_s_r regarding the 2nd TD holder’s responsibilities.

It should also be noted that even for recourse loans (the 2nd TD in this case) it still requires the holder to sue your brother and obtain a judgment.

[(former)FormerSanDiegan]

Good point n_s_r regarding the 2nd TD holder’s responsibilities.

It should also be noted that even for recourse loans (the 2nd TD in this case) it still requires the holder to sue your brother and obtain a judgment.

[Quietcat]

Thanks to you too BigDog. No way I am getting involved financially. My Mom’s advice to him was to walk, but I suggested that if he could pay his debts off (including a couple other small ones) that he would feel better about himself and be doing the right thing. He did not buy during the boom which is what is sooo sad. He took out the 2nd to start a business that he also let fail . . .

Anyway, there is a lot worse out there, and he is getting his due if it is simply getting kicked out of what was once his home . . .

Is Zillow worth the cost of their estimates? i.e. free . . .

[Quietcat]

Thanks to you too BigDog. No way I am getting involved financially. My Mom’s advice to him was to walk, but I suggested that if he could pay his debts off (including a couple other small ones) that he would feel better about himself and be doing the right thing. He did not buy during the boom which is what is sooo sad. He took out the 2nd to start a business that he also let fail . . .

Anyway, there is a lot worse out there, and he is getting his due if it is simply getting kicked out of what was once his home . . .

Is Zillow worth the cost of their estimates? i.e. free . . .

[Anonymous]

Quietcat wrote: “…He did not buy during the boom which is what is sooo sad….”

I’m no financial wizard, but this is more than a simple housing bubble. Actually, we experienced a “credit boom”, within it was the housing boom. There are many dimensions to what has happened in the last five years, and Quietcat’s brother is a good example of another dimension–> using the house as an ATM.

[Anonymous]

Quietcat wrote: “…He did not buy during the boom which is what is sooo sad….”

I’m no financial wizard, but this is more than a simple housing bubble. Actually, we experienced a “credit boom”, within it was the housing boom. There are many dimensions to what has happened in the last five years, and Quietcat’s brother is a good example of another dimension–> using the house as an ATM.

[gn]

Is Zillow worth the cost of their estimates

For properties in California, Zillow's estimates are often higher (a lot higher) than the actual market values.

 

[gn]

Is Zillow worth the cost of their estimates

For properties in California, Zillow's estimates are often higher (a lot higher) than the actual market values.

 

[Author]

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