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SoundsoftheSuburbs

LoanSafe Member
Aug 6, 2020
16
0
1
Is it possible to have the lease include an agreement to purchase at x dollars at year 5 in the lease? Just spitballing a way to take over your father's liabilities and retain rights to the property as a tennant (while waiting for credit issues on the mortgage are resolved.) In this case, he would still be living with you because, well, you are taking care of an elderly parent. I don't know if this creates issues of law but it could create contractual rights. I have considered leasing with option to buy as a way to obligate the pretender lender to a pre-existing contract so they don't have claims to evict anyone in a potential future foreclosure.
The lease agreement that we signed includes an option to purchase for a specified dollar amount. Right now, we are working on getting all his taxes together for a bankruptcy case. Unbelievably, my father ended up with COVID days before his scheduled discharge and was admitted to the hospital today. Anyway, it seems like this is going to be a process that will go on for a lot longer than I had imagined. At 2 years past due, I assumed that we had a matter of months. But, with COVID and the bankruptcy, it sounds like this could go on for years? SPS calls periodically requesting to speak with someone about a deed-in-lieu. I'm not sure why anyone would do that in current times.
 

Survivor_IN

LoanSafe Member
Jun 2, 2008
291
24
18
I am so sorry your father is in the hospital with COVID. How awful to have this stress on top of it all. :(

Praying for you and your family.

You are right, litigation may last years. My best guess is that if something happens and your father passes, you have survivors rights to the property, which creates a new ball of wax. I have thought of this with my own family and the mortgage. The lack of resolution is in itself harassing where they could have played fairly and negotiated to cure the debt a long, long, time ago.

Others may chime in on this, but you might consider converting to a chapter 7 which, if house is underwater, discharges the past due uncollectable parts. Also, in Chapter 13, another thought is they might have to sue and prove they are in fact the party that is actually "the real party in interest," meaning you can force them to prove their entitlement to collect or foreclose. Many lenders do not have such proof.
 

SoundsoftheSuburbs

LoanSafe Member
Aug 6, 2020
16
0
1
I am so sorry your father is in the hospital with COVID. How awful to have this stress on top of it all. :(

Praying for you and your family.

You are right, litigation may last years. My best guess is that if something happens and your father passes, you have survivors rights to the property, which creates a new ball of wax. I have thought of this with my own family and the mortgage. The lack of resolution is in itself harassing where they could have played fairly and negotiated to cure the debt a long, long, time ago.

Others may chime in on this, but you might consider converting to a chapter 7 which, if house is underwater, discharges the past due uncollectable parts. Also, in Chapter 13, another thought is they might have to sue and prove they are in fact the party that is actually "the real party in interest," meaning you can force them to prove their entitlement to collect or foreclose. Many lenders do not have such proof.
My dad is an incredible fighter and was discharged from the ICU and hospital last week. He was transferred to a non-COVID hospital here in the area. I've still yet to see him. SPS continues its non-serious engagement. I've submitted another RMA. My dad's accountant is still in the process of filing income taxes in order to file the bankruptcy. The government sent him the stimulus money of $1,200 unsolicited, which is horrifying given his $110k plus income while not even working. Anyway...

The house will be turning upside down if they don't come up with a resolution quickly. The total balance is coming up on $651k, and in the current market (it's been a mixed bag here in Chicagoland), I think it is probably worth about that. They came up with a BPO $674k. I think that's aggressive. However, this home in better shape ($50-60k later) is probably worth around $800k+. They should be receiving some property tax refunds after I found some missing exemptions and my county did a COVID assessment reduction. The county says that they sent the escrow account a few thousand dollars. This really is the stupidest thing ever because they will lose far more money dragging this out or taking the house than just re-amortizing the loan. Ugh...