The continuing saga of finalizing my mother's estate

laurac260 · Aug 22, 2014

For those of you who may remember, mom has two properties. Her residence (paid for), her rental property (mortgaged).

The rental property is vacant, for sale, and in arrears by two months. There is no more money to pay the mortgage.

The realtor suggested I contact the bank and do a "deed in lieu of foreclosure". Well, I did that, or atleast attempted to do so. Things were going good with the prelim info (name, rank, serial number, and PHONE NUMBER-BOY AM I SORRY I EVEN WENT THAT FAR!!)

We hit a road block when the question came of "tell me your employer and occupation."

"Why do you need that info?"

Well, in order to start this process, we are going to need all of your financial information.

Um, no. I will not be providing that. And why do you need it? We want to see if you qualify for "mortgage restructuring".

What part of, this is not my house, I'm not on the mortgage, the two who ARE are dead, there is no more funds to pay for it, etc etc etc do they not GET?

Well, I cannot do deed in lieu of foreclosure without providing the financial info. My atty says they cannot ask me to provide it.

I asked them, what happens if I do nothing? They went through the foreclosure shpeil. The house is for sale, nothing else I can do.

But wait, there's more. Remember the part about "giving them my phone number?" Well today, the harassing phone calls have started.

GregT · Aug 22, 2014

Laura,

I'm so sorry to hear that, I hope the phone calls don't become a recurrent problem. What is the property and where is it located?

Thank you and my condolences on your loss -- and hoping for the best for you.

Greg

laurac260 · Aug 22, 2014

GregT said:
Laura,

I'm so sorry to hear that, I hope the phone calls don't become a recurrent problem. What is the property and where is it located?

Thank you and my condolences on your loss -- and hoping for the best for you.

Greg

A house, in a not so great part of Ohio.

Fern Modena · Aug 22, 2014

If you get any more telephone calls, have your attorney send them a letter telling them to cease & desist the harrassment. He can also tell them that the estate is out of settlement funds, and officially suggest that as executor (is this what you are) you are willing to give them a deed in lieu of foreclosure.

Maybe it will go better if he does the talking. It is worth a try.

Fern

laurac260 said:
Well, I cannot do deed in lieu of foreclosure without providing the financial info. My atty says they cannot ask me to provide it.

I asked them, what happens if I do nothing? They went through the foreclosure shpeil. The house is for sale, nothing else I can do.

But wait, there's more. Remember the part about "giving them my phone number?" Well today, the harassing phone calls have started.

vacationhopeful · Aug 22, 2014

Laura,
I suggest you tell your lawyer to WRITE the bank that THE BANK needs to PAY YOUR LAWYER his fees and all unpaid (back) fees associated with the house to process the IN LIEU of FORECLOUSURE.

Bill collectors - most are paid a cut of the funds they collected - make sure a copy goes directly to a BANK/MORTGAGE company officer (not no salary/hourly/commissioned person).

Passepartout · Aug 22, 2014

Laura, DW says to have a lawyer write the bank a cease & desist. Then use caller ID to screen calls. Unfortunately, your contacting them on this matter opens a 'business relationship' which exempts them from 'Do Not Call' lists.

All the best. I hope it sells before the bank can foreclose.

Jim

laurac260 · Aug 22, 2014

Passepartout said:
Laura, DW says to have a lawyer write the bank a cease & desist. Then use caller ID to screen calls. Unfortunately, your contacting them on this matter opens a 'business relationship' which exempts them from 'Do Not Call' lists.

All the best. I hope it sells before the bank can foreclose.

Jim

Thanks Jim, and others as well…

Spoke with mom's atty this evening. She said that if I have told them to stop calling, then they MUST do so, because they are now in violation of the "collections law". She told me to take their name, number and id # and report it back to her, and to let them know that legal action will be taken against them. Said she has no problem filing a federal injunction against them, and that several banks have been sued for this very thing.

She is also sending me a release, allowing the bank to talk to her (when I referred them to my atty, they refused to talk to her, saying that they don't have a "release of info" in writing).

Fern, the bank is willing to do a deed in lieu of foreclosure, so long as I provide the requisite information. Part of the requisite info is providing my financial info, which I refuse to do (and my atty said they cannot ask for that). Well, they did. I'm no dummy. I know what my financials look like, and I am well aware that they will deem me "qualified for a mortgage restructuring plan".

They told me they need to "protect their interests". I so GET this. But I got a little snappy with them when they again asked for financials. I informed them they HAD the financials for the folks on the loan… dead, and also dead.

I have no idea if all banks perform in this heavy handed way, but my mom banked with this particular bank for everything, and it has been a PIA (to put it mildly) in every single dealing I have had with them, from her checking account to her IRA (with the exception of the local branch manager… he was a gem) . I cannot wait to be disconnected from them, and I will never bank with them again.

klpca · Aug 22, 2014

laurac260 said:
Fern, the bank is willing to do a deed in lieu of foreclosure, so long as I provide the requisite information. Part of the requisite info is providing my financial info, which I refuse to do (and my atty said they cannot ask for that). Well, they did. I'm no dummy. I know what my financials look like, and I am well aware that they will deem me "qualified for a mortgage restructuring plan".

They told me they need to "protect their interests". I so GET this. But I got a little snappy with them when they again asked for financials. I informed them they HAD the financials for the folks on the loan… dead, and also dead.

Lol at them protecting their interest. They made the loan - and I assume that they did underwriting at the time. It turns out it was a stinker for them. Too bad. Their recourse is with the borrowers on the note or the property itself. If they had wanted more security they should have gotten it before they made the loan.

I'm sorry that you are having to deal with them and their fantasies of who they can collect against. For sure it isn't you. It sounds like you have a good attorney though. Best of luck to you.

dougp26364 · Aug 22, 2014

laurac260 said:
For those of you who may remember, mom has two properties. Her residence (paid for), her rental property (mortgaged).

The rental property is vacant, for sale, and in arrears by two months. There is no more money to pay the mortgage.

The realtor suggested I contact the bank and do a "deed in lieu of foreclosure". Well, I did that, or atleast attempted to do so. Things were going good with the prelim info (name, rank, serial number, and PHONE NUMBER-BOY AM I SORRY I EVEN WENT THAT FAR!!)

We hit a road block when the question came of "tell me your employer and occupation."

"Why do you need that info?"

Well, in order to start this process, we are going to need all of your financial information. Um, no. I will not be providing that. And why do you need it? We want to see if you qualify for "mortgage restructuring".

What part of, this is not my house, I'm not on the mortgage, the two who ARE are dead, there is no more funds to pay for it, etc etc etc do they not GET?

Well, I cannot do deed in lieu of foreclosure without providing the financial info. My atty says they cannot ask me to provide it.

I asked them, what happens if I do nothing? They went through the foreclosure shpeil. The house is for sale, nothing else I can do.

But wait, there's more. Remember the part about "giving them my phone number?" Well today, the harassing phone calls have started.

We went through something like this when my mother in law passed, except it was a car. I offerd to try to sell it for the bank, they agreed, then attempted to slip some paperwork in making me the owner. It was a little easier for us. I just tossed them the keys and told them it's their car and their problem now. They were still talking as I walked out of the bank.

PrairieGirl · Aug 22, 2014

with the exception of the local branch manager… he was a gem) . I cannot wait to be disconnected from them, and I will never bank with them again.

I am so sorry for your loss and this treatment is beyond insensitive by the bank in question.

My suggestion is to go "up the food chain" until you find someone who can grasp the situation (what part of "I'm just the executor trying to settle this" don't they get?). You said that the local branch manager was previously helpful, perhaps he can give you a specific individual in the right department to call. It sounds like you have been talking to the new generation of entry level bankers - programmed to do things a certain way without an ounce of independent thought in their brains.

Somewhere, at some higher level, there will be someone who understands that a "deed in lieu" is in everyone's best interest. And stick to your guns about not handing out your personal info - it has NOTHING to do with the matter at hand.

Best of luck, LeAnn

am1 · Aug 23, 2014

Maybe you would be better off to keep paying each month in hopes of eventually selling it at a higher price. Is it currently rented?

laurac260 · Aug 23, 2014

am1 said:
Maybe you would be better off to keep paying each month in hopes of eventually selling it at a higher price. Is it currently rented?

Here's the thing… the house was a purchase that my "mom's husband" made 6 years ago. My mom didn't think it was a good idea (it wasn't), but he did it anyway, and being the "good wife" she signed the contract too (no, no gun held to her head).

The purchase was made because his "friend" had bad credit and couldn't afford to buy a house. The plan was that the friend would eventually be able to get a loan. He wasn't able to.

mom's husband died in 2013, mom died in Feb. As soon as mom died, the friend stopped paying rent. The house is a mess, in a bad neighborhood, next door to a boarded up house, across the street from a boarded up bar.

We evicted the tenant, and put the house up for sale. No one in the family wants any part of this house. No one wants to deal with the element that would rent it. This is a neighborhood of thieves, drug addicts, drunks… sadly, my mom's husband grew up there and "fit right in". I did not like the guy, did not like that mom married him, was very against them moving to this neighborhood (they lived in the house next door--paid off). I think you get the pic.

The bank note is for about $35k (waiting on the exact number). The house MIGHT sell for 20k (we have it listed for 39k but that number is going to be lowered once I get the payoff amount). I'm not about to start paying from my own funds in this instance, and honestly, who would want to?

vacationhopeful · Aug 23, 2014

See if a Volunteers of America chapter might have a family whom they would move into the house - if the VOA cleans & fixes AND tries to take over the ownership of the house. Let THEM deal with the bank - bank might be able to take a deduction and get some good (and undeserved) good will and press.

DebBrown · Aug 23, 2014

It seems like the estate owns another house in full. I'm not sure how you can claim that the estate doesn't have any resources. How does that work?

Deb

bogey21 · Aug 23, 2014

laurac260 said:
....but my mom banked with this particular bank for everything......

First thing I would do is close all of her (and I suggest your) accounts with the Bank if there are any. That way when the stuff hits the fan Bank will not be able to use "right of offset" and grab any money from them. Then about a week or so I would later write them (or have lawyer write them) a letter telling them to go fly a kite.

George

Passepartout · Aug 23, 2014

laurac260 said:
The house is a mess, in a bad neighborhood, next door to a boarded up house, across the street from a boarded up bar.

We evicted the tenant, and put the house up for sale. No one in the family wants any part of this house. No one wants to deal with the element that would rent it. This is a neighborhood of thieves, drug addicts, drunks…
The bank note is for about $35k (waiting on the exact number). The house MIGHT sell for 20k (we have it listed for 39k but that number is going to be lowered once I get the payoff amount). I'm not about to start paying from my own funds in this instance, and honestly, who would want to?

Oh boy, Laura, this sounds like a real albatross around your neck. I hope you can find a sympathetic ear and just turn it over to the bank- or maybe the fire department for a 'training' burn.

laurac260 · Aug 23, 2014

DebBrown said:
It seems like the estate owns another house in full. I'm not sure how you can claim that the estate doesn't have any resources. How does that work?

Deb

There is no cash to pay the mortgage. There is a house that is paid in full, that is located next door to said house, and is also for sale. There is also about 8k in medical bills. Until the paid in full house sells there is no cash to pay the mortgage, or the medical bills.

laurac260 · Aug 23, 2014

bogey21 said:
laurac260 said:

....but my mom banked with this particular bank for everything......QUOTE]

First thing I would do is close all of her (and I suggest your) accounts with the Bank if there are any. That way when the stuff hits the fan Bank will not be able to use "right of offset" and grab any money from them. Then about a week or so I would later write them (or have lawyer write them) a letter telling them to go fly a kite.

George

Click to expand...

In process as we speak.

laurac260 · Sep 16, 2014

Maybe, just maybe, we we've gotten a break...

I've been back and forth with the realtor asking for real estate advice (learned today that she's never done a short sale),and with the attorney asking for legal advice (I think she is the female equivalent of Better Call Saul), and also with the bank (I won't name who they are, but their initials are Pester and Nag Customers)…

Today, maybe just maybe I found someone who gets that dead people are actually DEAD. Not dead as in "hit the reset button on the video game because you've run out of Mario's" dead, or dead as in "I'm Patrick Ewing and it was all just a bad dream" dead, but GONE forever dead.

I called the bank about a deed in lieu of foreclosure again. Just on the off chance I'd catch someone who could actually help me. And lo and behold, I spoke to a young lady who actually said to me… "I get that the parties are dead. This status isn't going to change." I said, "you mean, them being dead?" Her response, "Yes, this is long term." :O

Wow. Do you know it has taken me hours of calls over days, weeks and months, on holds, transfers, etc etc to get someone to realize that dead is actually long term, as in, they don't write checks anymore??

So now a "file" has been opened. And I have a person assigned to me with an actual name and extension number. And she emailed someone else who is going to contact me "soon", even though the extension number chick is my POC. I was so giddy over the revelation of the definition of dead that I didn't bother to question the layers of redundancy I still needed to get through. Baby steps.

Meanwhile, the realtor emailed me to let me know my listing expires with her tomorrow, and she sent me the contract to extend. I'm not sure which emoji to use for that one, so I will pick a couple… :wall:

Oh oops, did I say the listing expired tomorrow? I reread the email. It expires today.

vacationhopeful · Sep 16, 2014

laurac260 said:
......Oh oops, did I say the listing expired tomorrow? I reread the email. It expires today.

The correct symbol is :cheer:

or

or :whoopie: followed by this :wave:

as you shread their renewal paperwork!

Time for realtor a-hunting! OR sign that deed back to the BANK!

GO TO IT, girl!

am1 · Sep 16, 2014

I think there is a reason why banks do not make this sort of thing easy.

laurac260 · Sep 16, 2014

vacationhopeful said:
The correct symbol is or or :whoopie: followed by this as you shread their renewal paperwork!

Time for realtor a-hunting! OR sign that deed back to the BANK!

GO TO IT, girl!

If I can sign the deed back to the bank, then that takes care of the under water rental property.

I still have my mothers house to sell. A 650 sq ft 1 bdrm. Fortunately that house does not have a mortgage. Unfortunately it is over priced at 39k, or so it appears.

vacationhopeful · Sep 16, 2014

Laura,

Perhaps selling the 1bdr house on Craigslist? Or put it yourself on Trulia.com .... I have put my rental homes there with my pictures for FREE.
Will look at the other sites open to an non-realtor ... like me and you...

laurac260 · Sep 17, 2014

vacationhopeful said:
Laura,

Perhaps selling the 1bdr house on Craigslist? Or put it yourself on Trulia.com .... I have put my rental homes there with my pictures for FREE.
Will look at the other sites open to an non-realtor ... like me and you...

Thanks Linda, but the less personal involvement I need to have with this, the better. The fact that I live an hour away not withstanding, it's a questionable neighborhood to say the least. When my brother went there a few months ago to move some furniture out, the neighbor greeted him with shotgun in hand. He was watching the place for us, and a big dude walking out of a house carrying a futon means one thing in that neighborhood, grab your shotgun. It was dusk and he didn't immediately recognize my brother. As my brother said, "He didn't shoot me, but he did help me move the futon."

In this sort of neighborhood, I "welcome" the notion that someone is watching the place like that. I only go there in broad daylight, and I immediately lock the doors. When my mom's husband was a younger man living there, he was a ringleader, and his buddies were the element to keep your guard up for. I tried to talk my mom out of moving into the neighborhood 30 years ago, but no luck.

The sooner I am out of it, the better.

glypnirsgirl · Sep 17, 2014

Sounds like things are looking up.

It is such a pleasant surprise to find someone that can think instead of regurgitate a script.

Kudos for recognizing that you have no personal liability for the real estate lien note and refusing to give your personal financial info.

Hope things progress from here on.

elaine

The continuing saga of finalizing my mother's estate

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