And everyone wonders why lenders are like they are these days! I've been the victim of helping borrowers with loaning them money and then had them turn around and file BK, basically stealing my money!
The new rules and regulations have now created loopholes for borrowers to do lenders, who took a chance to help them in their time of need, very wrong, basically able to steal the money from them.
Now those same type of borrowers will likely want to buy again soon and will think everyone is doing them wrong and trying to take advantage of them because they will have to pay points and high rates!
It's amazing seeing how backwards things have become over since 2008! This is the new "Hope and Change" America! How dare a lender expect anyone to respect a contract and fulfill their promise to pay and complete their contracal obligations!
I have family and many attorney friends, but what you need to do is also rely on advice from those who have gone thru what you are going thru and not just the advice of any one attorney.
Same as divorce attorneys, like playing volly ball with motion after motion, once they know they have a player on the other side, many will milk a case by working in tandum with the other side's attorney to drag it out as long as they can.
Given that you are a private lender and only have to focus on this property, the timing may be different than it is for a regular bank that is handling thousands of loans with their attorneys. While what is indicated here is true, that the process can be a long one, because borrowers do take advantage of many loopholes, there is also something to be said about delays because the banks and their attorneys are so overwhelmed that they simply not stay on top of all the timing required in handling a foreclosure. I have seen many foreclosure cases dismissed by the judges because the banks have failed to file the necessary documentation to keep the process moving forward. What you will want to determine with your attorney is to see how many foreclosure cases he is handling and stayying in communication with him to ensure all timeframes are met. There may be something he can provide you with to let you know the timelines and what to expect in the process so you are better informed on the progress. It is unfortunate that you are having to go through this, but with your attorney's help you should have this resolved possibly faster than you thought possible.
Is the amount of the loan you have on this property less than the value of the home? If so, then this may be something you will want to give some thought to. Maybe as suggested here, that you can consider modifying the payments for the borrower, giving them a bit of an extension on repayment. There are many different options depending on what the full circumstances are in your case. Please feel free to contact me if you have any additional questions. While I am not an attorney, nor will I give you legal advise, I can share with you some options that you can discuss with the borrower.
RE/MAX Advance Realty
CDPE-Certified Distressed Property Expert
You could be in for a very long and very nasty ride!
There is a lot of info I can share with you that a real estate attorney may or may not know or may of may not tell you.
Contact me before 11:00 am and I'll tell you what I have seen and know.