Sometimes real estate is a ball and chain

By golfplan18   follow   Wed, 6 Feb 2013, 11:23pm PST   ↑ Like (1)   ↓ Dislike   422 views   2 comments   Watch (1)   Share   Quote  

http://ochousingnews.com/news/sometimes-real-estate-is-a-ball-and-chain?source=Patrick.net

Banks have been allowing delinquent mortgage holders to squat while prices rebound because rising prices allows them to recover more on their bad loans. In many cases, the delinquent borrower moves on with their lives and leaves the property vacant with the assumption that the bank will finally foreclose and resell the property. However, banks are under no obligation to foreclose; it’s merely a contractual right.

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Henry the Investor2   befriend (0)   ignore (0)   Fri, 8 Feb 2013, 2:21am PST   Like   Dislike     Share   Quote   Comment 1

In theory the title owner could clear his name from the title by deeding the property to a straw man buyer, preferably an out of state, judgment proof, loser; perhaps even someone, broke, dying of cancer. Give them a few bucks, they are not at risk, the title is transferred, subject to taxes, liens, etc. Spell this out. Then the title search by the authorities will show only the current title holder, Mr Strawman. I don't see this as fraud as long as the seller lets the buyer know how bad off the property is. The weakness of the title concept is it doesn't look back up the chain; only for the current "owner".

ELC   befriend (3)   ignore (0)   Sat, 9 Feb 2013, 11:52pm PST   Like   Dislike     Share   Quote   Comment 2

Henry the Investor2 says

In theory the title owner could clear his name from the title by deeding the property to a straw man buyer,

Or how about trying a quit title action?

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