Repurchase/Buyback Options after Foreclosure

dsj77 · #1 01-27-2008, 04:29 PM

What is the name of your state? CA

After unsuccessful attempts at preventing foreclosure of my home - the lender proceeded with the (non judicial foreclosure) and auction sale. However, the house did not sale and I was informed (by phone) by the lender that they now own title to the property. They did extend an offer to us to lease the property back from them - which we are now considering given that our financial situation has stablized (new job and additional monthly income) we would like to negotiate a lease-option agreement.

The lender's initial proposed (month to month) lease agreement was 2.5x the going mark rate in this area. We're considering a counter-proposal which would include 1) a purchase price @90% of our mortgage balance at the time of sale, 2) monthly payments that are more in the range of the going market rate - plus a rental premium to be applied to the repurchase.

Here are my questions:

1. First, we *never* received *any* documentation after the scheduled sale date. Does the trustee or lender have to notify us in writing of the current disposition of the property?

2. Assuming the house is now owned by the lender - what are the *typical* (if there is such a thing) terms for lease-options for REO's? I've seen terms that range between 12-36 months.
-Note: Similar homes in this area are going between $1,600 - $2,300 per month

3. The lender has expressed reluctance for entering into a lease agreement - claiming they don't want to take the risk. But I'm not sure what risk they would be taking with a lease-option since if we breach the agreement all bets are off - any thoughts on this?

Any other advice would be greatly appreciated!

DSJ77

FlyingRon · #2 01-28-2008, 10:05 AM

If they have title, the house DID sell. It's just that they bought it. That is the current disposition of the property. Your NOTICE was the sale notice in compliance with what you agreed to on the original mortgage.

Leases and any options are entirely at the discretion of the OWNER and the current LOCAL market conditions. Can't help you t here.

You have a foreclosure on your record, I can understand their reticience to enter any further arrangements with you. Contrary to your conception, they DO NOT WANT TO OWN PROPERTY. They didn't want to foreclose on you, they wanted you to pay the note as agreed...they have not real incentive to extend their ownership as an option to you in which in their mind has a HIGH probability of them continuing to own the property in the long run. It further encumbers them from disposing it to a different buyer.