I hold an owner financed mortgage for someone who is consistently late on their payments. It makes me mad because I do not have the money to pay my original mortgage on the home along with my current house payment (long, long story! divorce...) so when this person is late, my original mortgage on the home is late. My credit report is taking a hit, but it does not affect them at all. Is there any way that I can report this to the CRA's so that it will show up on their CR's?
If they are very late evict, see if they can assume your loan or have them refinance into the loan. Get out regardless. First rule of real estate, know your exit strategy. Good luck!
I wish I would have had that advice 6 years ago. I was 22 and assumed my lawyer had my best interest in mind. I entered into a wrap around mortgage with this person, so unfortunately, eviction is not an option. I have to actually foreclose on her. The second thing is that she knows how to play "the game". When I start to foreclose on her, she files Chapter 13 bankruptcy which forces me to halt all foreclosure proceedings. Then it will eventually be dismissed due to her non-payment into bankruptcy. When it is finally completely dismissed, I will begin foreclosure proceedings and she will file Chapter 13 again. There are no rules in place to prevent her from doing this because her Chapter 13's are never completed. She has done this three times since 2000. I have a new attorney who is fighting her most recent Chapter 13 bankruptcy, but the judge has confirmed her AGAIN! She has only made one house payment since last July. I have paid my house payment and my husband picked up a second job so that we can afford to pay her house payment. Keep in mind the lady in the home has not worked since 2000, only her husband works. We have paid over $10,000 to keep my original mortgage from foreclosing. It has been a nightmare. I just hate the fact that I can not report to her credit (since I have tons of supporting documentation) I know the Chapter 13's that she keeps filing has to show up on her credit report, but I would just love the satisfaction of placing a negative on her report that is specifically due to this mortgage. Is there any one who knows of a way to do this?
Start a separate account and depsoit enough to stay one month ahead of the cash flow problem. Your report is reflecting that you're habitually late with your original mortgage. Unfortunately nobody cares why.
Even if you figured out how to put this on her credit report, wouldn't the BK prevent you from putting anything but Included in BK on there? I don't understand how, if she hasn't made a payment in a year, with or without BK that you can't do something? Doesn't make sense. I thought with the 13 she would have to pay the past due, while keeping the new payments current?
From the previous post it sounds like the new buyer never actually finalizes the Ch 13. She just files all the paperwork and then lets is drop.
I thought, with a wrap around (which aren't legal in some states), that their name is nowhere on the ownership papers.
She unfortunatley has a sleezy attorney who has helped her through this entire thing. She knows the way to get around the law and make it work to her advantage. We are fighting her, but it has just taken such a long time. Each bankruptcy has not been completed and we have yet to see any money from her. She did not make her post bankruptcy payments and the judge gave her 10 days to make the payments and she did. She is now on strict complaince which means that she has to make all payments to me and into the bankruptcy on time or the bankruptcy is dismissed WITH PREJIDUCE. That means that she cannot refile for 6 months as opposed to being just dismissed. If it is just dismissed, she can turn around and refile the very next day. Her last bankruptcy was dismissed 11/22/2002 for non payment and the day that she received my foreclosure letter (12/11/2002) she refiled. It has been a nightmare!!!!!! I just opened a separate checking account in January when we had to pay a lump sum of $5,400 in past due payments. We have then been making the remaining payments instead of hoping we will get something from her, so that my credit report will at least show current even with all the past problems. I am so ready to get this mess over with and foreclose on her. At this point, I am so angry at the people in the house that I just want to get rid of the home and do not care if I ever make a dime on this house.
to Jlynn: When you do a wrap around mortgage you sign the deed over to them. So you actually have to treat it as they own the home, as opposed to renting
CLK this is awful. This individual sounds really seedy. They are really taking advantage of you and the bankruptcy laws. You are a creditor and your tenants/buyers are debtors. You are just providing the financing for them to buy your home. Seems to me like there should be a way to put this on their credit reports if you really wanted to take the time to do so. Maybe next time they are late, send them over to a CA for collections? Or contact the CRA's and explain the situation, I doubt it, but maybe they will let you report. Also, I would try goodwill letters to your mortgage creditors explaining the situation and see if they might delete the lates. You never know. BTW, I was in the same situation, but on the opposite side of the fence, DH and I were buyers. I was pretty young and entered into a very similar deal, we were to remit mortgage payments to the seller, and seller was to pay the mortgage. Well, sellers did not always send in payments, and the home nearly got foreclosed on several times, we had to double pay. The sellers were so flaky. But the scariest part was when DH and I wanted to sell. We moved into the house in 1997 and agreed to pay off the current mortgage (which happened to be almost exactly what the Fair Market Value of the home was). However, by 2002, the home more than doubled in value! So DH and I wanted to sell and take the profit. But the seller threw up a fight and insisted on reworking our original deal in 1997, basically refusing to sell. After numerous fights and legal threats, DH and I eventually got the seller to back off and we were able to sell. Seller assisted financing can get ugly. Good Luck!
I haven't thought about taking that route with the collection agency. I know their credit is probably ruined by the continued Chapter 13 bankruptcies, but at this point it would just be so satisfying to me to know that I at least assisted in putting a ding on their credit report and to show specifically that they have paid a mortgage incredibly horrible. I believe that it will work out in the end, I am just going to have to wait it out (and hope that it does not take another six years!!). Thanks for the advice!!!!!!
