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Yes, quite a bit of updates, actually.
We finally received the proof of insurance for the house last week. It was through the Minnesota Fair Plan, which is a last-ditch service for homeowners who can't get insurance with any other company. It only covers the tax value of the building, which in this case is about $10,000 less than the amount of the loan. After talking it over with Goodhair and the new Branch Manager, we decided that was good enough. If Betty and her husband have a loss on the house (say it burns down or something), there's still plenty of value in the land to cover the difference.
I started the preliminary documents for the balloon renewal on the house. We still only have 2011 tax returns, so no proof of income, but they got us everything else we needed to renew the loan on the house. When I was gathering information about the house, I discovered that they have some sort of quarry on the southern end of their property. This is something we weren't aware of. So when BM went out to take pictures of the house for the loan file, he also took pictures of the quarry. It wasn't running when he was there, but there was equipment still on site. Goodhair thought it might be a sand quarry, and the piles of rocks around the edges were byproducts. So there should be some income from that, but we have no documentation of it.
We got Betty and her husband in last Thursday to go over the preliminary documents for the balloon renewal of their house loan. They were generally agreeable and seemed happy that we were renewing the loan. Neither seemed surprised when I told them their credit scores (both 600 or under, which is horrid). Even the husband, whose credit score had been over 800 (which is excellent) six months ago, didn't seem surprised or upset at his low credit score. Which means that they're aware of their credit situation.
BM sat in on the meeting. Once we were done with the loan documents, we went over the real estate taxes on the restaurant again. They didn't have a plan to pay them, other than the inheritance that Betty thinks she's getting from some relative, but she has no documentation that she's owed that money. Betty said that she wants to keep the restaurant, which is good. On Goodhair's suggestion, we offered to do a second mortgage on their home to pay the real estate taxes on the restaurant. There's plenty of value on the house, especially in the land, to cover another $9,000 to pay the real estate taxes on the restaurant through the end of 2015. Betty seemed to like the idea, but her husband was quiet. They said they'd talk it over.
Betty and her husband will be coming in Thursday or Friday to sign the final documents for the balloon renewal on their house. They're supposed to tell us then whether they want to do the additional loan. BM even suggested that, if Betty does get the inheritance, she could pay off the 2nd mortgage with it. Betty said she wanted to pay down the loans with the inheritance money, which would be a good thing both for her and for the bank.
But if they come in Thursday or Friday and say they don't want to do the 2nd mortgage, we'll have no choice but to foreclose based on the past due real estate taxes. We need to make sure we can foreclose before the county takes the restaurant tax forfeit. I feel sorry for Betty (a little), but we've worked with her as much as we can.
We finally received the proof of insurance for the house last week. It was through the Minnesota Fair Plan, which is a last-ditch service for homeowners who can't get insurance with any other company. It only covers the tax value of the building, which in this case is about $10,000 less than the amount of the loan. After talking it over with Goodhair and the new Branch Manager, we decided that was good enough. If Betty and her husband have a loss on the house (say it burns down or something), there's still plenty of value in the land to cover the difference.
I started the preliminary documents for the balloon renewal on the house. We still only have 2011 tax returns, so no proof of income, but they got us everything else we needed to renew the loan on the house. When I was gathering information about the house, I discovered that they have some sort of quarry on the southern end of their property. This is something we weren't aware of. So when BM went out to take pictures of the house for the loan file, he also took pictures of the quarry. It wasn't running when he was there, but there was equipment still on site. Goodhair thought it might be a sand quarry, and the piles of rocks around the edges were byproducts. So there should be some income from that, but we have no documentation of it.
We got Betty and her husband in last Thursday to go over the preliminary documents for the balloon renewal of their house loan. They were generally agreeable and seemed happy that we were renewing the loan. Neither seemed surprised when I told them their credit scores (both 600 or under, which is horrid). Even the husband, whose credit score had been over 800 (which is excellent) six months ago, didn't seem surprised or upset at his low credit score. Which means that they're aware of their credit situation.
BM sat in on the meeting. Once we were done with the loan documents, we went over the real estate taxes on the restaurant again. They didn't have a plan to pay them, other than the inheritance that Betty thinks she's getting from some relative, but she has no documentation that she's owed that money. Betty said that she wants to keep the restaurant, which is good. On Goodhair's suggestion, we offered to do a second mortgage on their home to pay the real estate taxes on the restaurant. There's plenty of value on the house, especially in the land, to cover another $9,000 to pay the real estate taxes on the restaurant through the end of 2015. Betty seemed to like the idea, but her husband was quiet. They said they'd talk it over.
Betty and her husband will be coming in Thursday or Friday to sign the final documents for the balloon renewal on their house. They're supposed to tell us then whether they want to do the additional loan. BM even suggested that, if Betty does get the inheritance, she could pay off the 2nd mortgage with it. Betty said she wanted to pay down the loans with the inheritance money, which would be a good thing both for her and for the bank.
But if they come in Thursday or Friday and say they don't want to do the 2nd mortgage, we'll have no choice but to foreclose based on the past due real estate taxes. We need to make sure we can foreclose before the county takes the restaurant tax forfeit. I feel sorry for Betty (a little), but we've worked with her as much as we can.
Dammit.
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