I need really good upper management information.
I know its a collection agency. We have a home listed that back in 2007 was worth about $150k. Now, its worth maybe $30k!
The seller has 3 mortgages, the last being supposedly held now by CBCS. They are not budging on what they want and I find it absurd what they are asking for.
The seller is a disabled vet that fought in the first gulf war. He has literally lost his job, wife, kid and now probably his home.
This is my last ditch effort to try and resolve the issues:
CBCS wants $7k in cash and $200 p/mo note signed for 60 Months.
Seller went back with: He has $5k he can borrow from family and since he does not work and still fighting (crazy) for his benefits from the VA, he is not comfortable with $200 a month but is willing to pay $100 p/mo.
They flatly refused. I told them, in that case, the house will go to foreclosure, they will get ZERO. I will have the seller contact bankruptcy attorney after foreclosure and wire the entire debt away......they are like......okay! Ummmmmmmm how stupid are these people!
Any contact information would be amazing. I believe in my seller and since he put his life on the line so ALL of us can work and live in this country, he deserves special consideration.
Thanks!!
Terri Barrow
Keller Williams - Palm Harbor Florida
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Seller should not file bankruptcy after foreclosure - then he has 2 hits on his credit and a longer struggle to rebuild. If bankruptcy is a consideration for him then he needs to file bankruptcy prior to a foreclosure and include the house in the bankruptcy.
WOW! Interesting reading here. I thank everyone for their advice & opinions.
After dealing with this file for a very, very long time. I wrote a hardship letter on behalf of the seller and he signed and we have sent it to CBCS. That said, they won't budge on what they want. I have advised our client that he needs to seek legal advice at this time. As much as I HATE to give up, I am on this one :( CBCS is a known cut throat collection company. They insist on their deal only and even though we went back to them with a reasonable offer, they will not budge. I will wait and see what my seller decides to do!
Terri Barrow
Keller Williams Realty
These agencies still need to get approval from the Mortgage company who hired them; meaning they're not the decision makers. They will wait for the Senior lien approval to seat on the driver position of this negotiation. Most of the time these liens fall onto their lap because the borrower filed BK (if the loan was a HELOC and not reaffirmed through Chpt 11 that debt is gone but not the lien but could take as less as %2). State laws change in state by state basis and I'm referring as in general. Given the case the property goes to foreclosure everyone loses; Servicers get nothing, Junior liens wiped, Sr. Lien needs to fight its way through the court auction and pay all foreclosure fees that is the reason a foreclosed property looks as a hunted house. Thereafter, as a REO property the investor has been stripped in the foreclosure process has not money for marketing.
With all that said, I would suggest Chapt 7 BK which provides a brand new start.
Your client should consult with an bankruptcy attorney. I am not an attorney but I believe there were some changes made to the bankruptcy law in the middle of this real estate meltdown that now allows a bankruptcy judge to strip off excess mortgages. I am not sure if that passed or was just talked about. I have sold properties as a short sale out of bankruptcy. You need to work with the attorney on the timing of taking the property out of the bankruptcy. The key is to see if the judge can separate the 2 junior lien holders so you can get it sold. If your client has to reaffirm the debt, that won't do so look for a knowledgable attorney. Most attorneys will do a free consultation. You could help your client write down questions to ask. Also as a serviceman, there may be some protections there as well. By working with the right partners, you can help position your client to get rid of all the debts and get a fresh start.
The only other suggestion I have is shame. If you have a local news station that helps by investigating wrongs, you might be able to use the shame factor. You could also have your client start a petition on change.org to try to create pressure on the collection agency.
I never heard before that a collection agency of credit cards debit or medical bills, can put a lien on a property.How can this be possible?
Ask yourself this question: "Is the foreclosure really going to be any worse on the guy's credit than the short sale?" Probably not, to be one hundred percent honest.
Maybe you should think of this as your volunteer work instead of a real estate sale, and focus your efforts on getting him hooked up with community resources for disabled vets and into some affordable housing. Probably better that he move out into what he can afford, and walk away from this house without signing any future promissory note. The last thing he needs is another monthly obligation, right? Sometimes the answer isn't to keep pushing. Having said that, I've battled my way through shifty second mortgages or LOCs a few times and these collection agencies are rough to deal with. I felt like I was being beaten up daily by these guys.
I am on the Board of Directors of the Missouri/ Southern Ilinois Chapter of USA Cares. Have this seller contact USA Cares. They are based in Radcliff, KY He can contact them by going to http://www.usacares.org/ and making application on the web site. They responds to financial needs within 48 hours.
Also contact http://heroescare.org/ Go to the Services drop down menu and select Military Application for Assistance. They are based in St Louis, MO.
I am located in the St Louis area, so let me know if I can be of further assistance.
Dean thank you for your information and I have forwarded it to my seller
Terri
CBCS, I think is the same collection agency I dealt with. So. California location. CBCS is not a bank. I was told they handle unpaid medical bills. In my case, my Seller had her baby at UCLA, 8 years ago and never paid her medical bills, so the hospital sent the bill to this lawyer based collection company. They recorded a lien on the property.
I tried and tried and the best I could do was to get CBCS to come down by 1/2 of the debt and the two real estate agents split the rest, which was $3,400. No matter what argument I made CBCS was not going to budge. I looked into it and they will let it go into full foreclosure. If fact, the CBCS attorney I had to deal with said this to me. "I tell all you real estate agents the same thing. It is all about the money, show me the money. If we don't get money --you get no money but if we get money--you'll get your money. It is that simple" That is CBCS's position.
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