On day discharge was due- Trustee filed to sell/lease home

[bcohen]

Actually, the rent is not the biggest part of their scam... I mean... "investment" opportunity. They get a carve-out when it actually forecloses! The carve-out could be as much as $10,000.

As for HOA dues, the investor could be "jointly" liable on the HOA dues unless, as Des wrote, the "possessory" interest in the property is a gotcha.

What exactly is a "carve-out"? I had seen that term mentioned here many times, and had always thought it meant the potential to collect rent (or the value of getting to live in the house) while foreclosure is pending. Are you saying that the "investor" can somehow collect even more money, when the house actually forecloses?

[despritfreya]

No Hoa. Despritfreya..does that mean even after it is sold to the investor we are still responsible for it, or only in a HOA type situation?

It's only a HOA issue. The underlying mortgage will be discharged.

Des.

[despritfreya]

What exactly is a "carve-out"? ?

Think of a carve out as a kick back. Lender or short sale buyer agrees to give the trustee some $$ out of sale proceeds or out of buyer's pocket that could have gone to lender.

Des.

[saralee]

So, you are saying the bank holding the mortgage is also in on it?

Interesting..This is something that crossed my mind as a few weeks before this took place I saw on Pacer that the Lawyer for the Mortgage co (Bayview) submitted a "Notice of appearance". Figured this was just status quo...or maybe not?

[justbroke]

So, you are saying the bank holding the mortgage is also in on it?

Not up front unless this is strictly a Trustee carve-out. The Trustee carve-out was big back from 2010-2012 in Chapter 7 cases down here in Florida. The Trustee's actually colluded with the banks to get clear title in cases where the Florida unlimited homestead exemption was not claimed by the debtor. It was pretty clever, ingenious, and innovative, but at the same time pretty petty. However, some Trustees were demanding and receiving $10,000 to deliver clear title to the banks! There were banks that loved this and worked with the Trustees. I think it was only typical in Chapter 7 (individual) cases where there was only one mortgage on the property.

I'm figuring that these "investors" are doing the same thing or at least offering clear title to the banks without a costly foreclosure (thousands of dollars). The investor wins both ways if the debtor stays in the home and leases back the property for some period before the bank forecloses.

I just hate that they are using the bankruptcy system for this and I the duplicity really bothers me.

The only issue here is that this may not be a "Motion to Sell Free and Clear" but is a "Motion to Sell Or Lease Property".