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BillyBob11706

Cash for keys .... Lawyer says it won't effect credit as per the lender

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I'm posting this for a friend. The info that he is giving me makes no sense.

 

Here goes.... 3 people purchased a home in March 2008 for approx $340,000.00. There was a primarary borrower and 2 others that are guaraneeing the lown. The deposit was approx. $100k and the mortagage was approx $240k.

 

They only made a few payments. Things began to go down hill right after they moved in.

 

Here we are in April 2015, comming up on almost 7 years of no payments. I believe that they only made 3 or so payments.

The homeowner hired a lawyer several years ago. I guess he is doing his job because they are still in the house. The homeowner who is one of the people on the deed and mortagage wants to do a CASH FOR KEYS deal. I told him that the home has to be vacant and nobody can trash it. The pipes are still in place, no missing boiler, no walls knocked down etc etc etc.

 

He was told by his lawyer that the bank may take the deal and that they won't report the forclosure to any credit reporting agency. I told him that I find this very hard to believe. Almost 7 years later and the bank is willing to do this??/ It doesn't make sense to me. Could this possibly be true?

 

Home is worth approx $235,000 . I'm not sure what is owed but it's probably $250k or so. I told him if this happened 5 years ago then possibly. Only in NY could this happen. All 3 borrowers will still have good credit.

 

Wells Fago

 

BillyBob

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Not sure on the "not affecting (or is that "effecting"??) credit" bit - but New York is one of those PITA states for a mortgage company to obtain a foreclosure so a cash for keys deal is very much a probable solution to the issue at hand.

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Of course they won't report the foreclosure! "Here we are in April 2015, comming up on almost 7 years of no payments." So pretty much, it is about to be past the reporting date, so even if they reported, it would not be there for long.

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Before I signed anything I would ask the lawyer if the bank is still with in the statue of limitations. They might have an interesting case. Here is an article i read recently. Not saying this is right or suggesting anything. Just suggesting to learn the rules of the game.

 

http://www.bostonglobe.com/business/2015/03/29/homeowners-facing-foreclosure-may-instead-home-free/PGPtrbQPHqYtKM2N1K74KJ/story.html#

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I can't believe that the past due mortagagee possibly gets rewarded by not paying. Only in America. Also an interesting concept .

BTDT.

 

Maybe something happened to affectuate non-payment.

 

In that case? Screw 'em. (Particulay if done illegally.)

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I'm posting this for a friend. The info that he is giving me makes no sense.

 

Here goes.... 3 people purchased a home in March 2008 for approx $340,000.00. There was a primarary borrower and 2 others that are guaraneeing the lown. The deposit was approx. $100k and the mortagage was approx $240k.

 

They only made a few payments. Things began to go down hill right after they moved in.

 

Here we are in April 2015, comming up on almost 7 years of no payments. I believe that they only made 3 or so payments.

The homeowner hired a lawyer several years ago. I guess he is doing his job because they are still in the house. The homeowner who is one of the people on the deed and mortagage wants to do a CASH FOR KEYS deal. I told him that the home has to be vacant and nobody can trash it. The pipes are still in place, no missing boiler, no walls knocked down etc etc etc.

 

He was told by his lawyer that the bank may take the deal and that they won't report the forclosure to any credit reporting agency. I told him that I find this very hard to believe. Almost 7 years later and the bank is willing to do this??/ It doesn't make sense to me. Could this possibly be true?

 

Home is worth approx $235,000 . I'm not sure what is owed but it's probably $250k or so. I told him if this happened 5 years ago then possibly. Only in NY could this happen. All 3 borrowers will still have good credit.

 

Wells Fago

 

BillyBob

I grew up in NY (zip 10950.)

 

I ♥ New York.

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did they ever really foreclose?

 

better check the SOL in your state for foreclosure.

 

they may not be able to foreclose after 7 years

 

There is reason to be incredulous about this aspect of the statute of limitations, and the industry is reminded of this yet again in a new case that voided a foreclosure — forever — because the statute of limitations had expired. [solomon Holding Corp. v. Golia, 55 A.D. 3d 507, 868 N.Y.S. 2d 612 (1st Dept. 2008)]

 

Mindful that in New York the statute of limitations to sue on a mortgage or the note is six years, how often would a lender wait that long to enforce its rights? One would think not often.

 

But there is a hidden threat. Once a foreclosure action is begun, even if it takes ten years to litigate (which does happen sometimes in New York), the statute of limitations is not an issue. It stopped running when the action began. If, however, after years of litigation or delay the foreclosure action is dismissed (for example via a ruling years later that service of process was deficient), even though the action itself disappeared, the acceleration survived.

 

So if the mortgage balance had been accelerated more than six years ago, the statute of limitations has expired. (The lender could start the foreclosure anew, but if the borrower asserted the statute of limitations the borrower would win; the foreclosure would be dismissed.)

 

This lurking peril does strike with surprising frequency, relatively speaking. The subject case was of the garden variety: the lender just waited too long, more than six years! In this instance, the lender began a foreclosure and although the borrower answered the complaint, the borrower did not raise the statute of limitations as a defense. Interestingly, the statute of limitations as a defense can be waived, so if the borrower’s lawyer doesn’t notice it, the tardy lender may yet succeed. Here, though, the borrower awakened nineteen months after he served his answer and sought to amend to add the statute of limitations defense.

 

In response, the lender did not argue that the statute of limitations had not run out (obviously it had) but rather that it was too late for the borrower to now change the answer. That was the right approach to take, but unable to show the necessary elements of prejudice or surprise to bar amendment of a pleading, the plaintiff’s riposte was rejected.

 

Not only was the borrower’s answer amended, based upon the statute of limitations, the complaint was dismissed. The lender lost all. The lesson here is very apparent. Lenders cannot sit on their rights

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