I just don't understand this customer.
TL;DR: He's paid for the house, but he doesn't take the last step to make sure it's titled in his own name.
Many years ago (about 13 of them), we had a customer default on a mortgage loan that he had with us. It was an investment property that he was selling via contract for deed to SC, the subject of this story. I wasn't involved at this point (I was merely a teller), but I believe the customer signed a deed in lieu of foreclosure, signing the property over to the bank.
The bank didn't want to keep the property and figured the person (SC) who was buying the house CFD would love to buy it for the amount remaining on the mortgage, and we'd be happy to provide him with a mortgage to pay off the remaining amount. But SC didn't qualify for his own mortgage, which was why they were buying the house CFD in the first place. SC said he was willing to pay, though, so the bank effectively took over the CFD and SC paid his monthly payments to the bank instead of the previous owner.
Everything should be copacetic, right? Hah. SC started getting behind on his payments almost from the first day. We constantly had to send reminder/collection letters, sometimes threatening to cancel the CFD and evict him, usually when he was more than two months behind in his payments. Eventually, though, he made his final payment.
Near the end of this, SC ran for city council and then state legislature, losing both races. While he was running, I wanted to tell people how bad he was at handling his finances, but I couldn't because of privacy laws. That bothered me for a long time.
When we received the final payment in 2013, we had a lawyer draw up a Warranty Deed to satisfy the CFD and transfer the property to SC. We got everything signed and sent in to the county, but they sent it back. We hadn't realized that real estate taxes were past due (an oversight on our part), and SC would need to pay the real estate taxes current before the Warranty Deed could be filed.
I called him (by this point, I was working in the loan department), and he said he couldn't afford to pay the 4 years worth of real estate taxes, but he would let us know when he could. I followed up in 3 months, then in 6 months. He paid some, but still hasn't caught up. It's 3 years later, and he still has 2 years worth of real estate taxes to pay. ...Which, as I look at it now, means he was actually caught up at some point, but neglected to tell us, and he got behind again. Since all payments go to the most recent year, the only way the older years would be paid is if he paid them all.
But that doesn't really matter, since he's past due again now. It would only take him about $200 to be current again, and then we could file the Warranty Deed. I don't understand why he doesn't just pay it, so he can actually own his own house.
TL;DR: He's paid for the house, but he doesn't take the last step to make sure it's titled in his own name.
Many years ago (about 13 of them), we had a customer default on a mortgage loan that he had with us. It was an investment property that he was selling via contract for deed to SC, the subject of this story. I wasn't involved at this point (I was merely a teller), but I believe the customer signed a deed in lieu of foreclosure, signing the property over to the bank.
The bank didn't want to keep the property and figured the person (SC) who was buying the house CFD would love to buy it for the amount remaining on the mortgage, and we'd be happy to provide him with a mortgage to pay off the remaining amount. But SC didn't qualify for his own mortgage, which was why they were buying the house CFD in the first place. SC said he was willing to pay, though, so the bank effectively took over the CFD and SC paid his monthly payments to the bank instead of the previous owner.
Everything should be copacetic, right? Hah. SC started getting behind on his payments almost from the first day. We constantly had to send reminder/collection letters, sometimes threatening to cancel the CFD and evict him, usually when he was more than two months behind in his payments. Eventually, though, he made his final payment.
Near the end of this, SC ran for city council and then state legislature, losing both races. While he was running, I wanted to tell people how bad he was at handling his finances, but I couldn't because of privacy laws. That bothered me for a long time.
When we received the final payment in 2013, we had a lawyer draw up a Warranty Deed to satisfy the CFD and transfer the property to SC. We got everything signed and sent in to the county, but they sent it back. We hadn't realized that real estate taxes were past due (an oversight on our part), and SC would need to pay the real estate taxes current before the Warranty Deed could be filed.
I called him (by this point, I was working in the loan department), and he said he couldn't afford to pay the 4 years worth of real estate taxes, but he would let us know when he could. I followed up in 3 months, then in 6 months. He paid some, but still hasn't caught up. It's 3 years later, and he still has 2 years worth of real estate taxes to pay. ...Which, as I look at it now, means he was actually caught up at some point, but neglected to tell us, and he got behind again. Since all payments go to the most recent year, the only way the older years would be paid is if he paid them all.
But that doesn't really matter, since he's past due again now. It would only take him about $200 to be current again, and then we could file the Warranty Deed. I don't understand why he doesn't just pay it, so he can actually own his own house.
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