irolg asked:
My aunt abused her POA for Grandma and sold one of her properties (we have been to a lawyer who states the sale was legal). My aunt used Grandma as the “lender” or the mortgage company per se. Grandma does not want to be the lender. She is 87 years old and this is a 30 year note for $80K with 2%, yes that’s TWO percent interest. We would like to know how to make the borrowers refinance the loan elsewhere, or how my Grandma can sell the loan. One of the borrowers has recently passed away, can we use that to ask them to refinance? Please HELP!
BARRY
My aunt abused her POA for Grandma and sold one of her properties (we have been to a lawyer who states the sale was legal). My aunt used Grandma as the “lender” or the mortgage company per se. Grandma does not want to be the lender. She is 87 years old and this is a 30 year note for $80K with 2%, yes that’s TWO percent interest. We would like to know how to make the borrowers refinance the loan elsewhere, or how my Grandma can sell the loan. One of the borrowers has recently passed away, can we use that to ask them to refinance? Please HELP!
BARRY
BENJAMIN
No, you cannot force the borrowers to refinance. And at 2%, they’d be absolute idiots to do so! Their payments would rocket from about $296 a month to over $505 per month. Would YOU refinance a mortgage that YOU had if you were facing that kind of a jump in the payments?
You might be able to sell the note, but at 2% you’re going to take a HUGE loss on the sale since that’s so far below market. At best you might get $46,000 to $47,000 if you could even find a buyer.
As long as the buyers keep up with the payments, you’re stuck with the loan.
Comment by bostonianinmo — January 7, 2009 @ 4:24 am
STEVIE
I wish I could help you, but there is truly no way to answer your questions effectively without reviewing the terms of the mortgage.
You may be able to sell it, but you will probably get far less than the mortgage balance as the rate is so low and because it’s a stand-alone mortgage.
Comment by bigpuppax — January 10, 2009 @ 2:33 am
HENRY
The first thing you should do is have your grandmother revoke the power of attorney so the Aunt doesn’t do anything else she doesn’t want. You’ll have to find out what the laws are in your state on calling in a loan ahead of schedule. Most likely they will have had to have missed payments for you to take any action.
Comment by Melius — January 12, 2009 @ 10:15 pm
BERT
Yes, you would have to use that to ask them to refinance. I would contact a real estate closing attorney (depending on what state you are in) or contact whoever is RESPONSIBLE for closing real estate transactions, whether it’s just a notary or an actual closing attorney.
Comment by healthspot_2000 — January 13, 2009 @ 4:31 pm
STEVEN
I got a better idea, go to the bank and ask the bank to loan her money and ask how much based on the return of the contract grandma has and use the payment from the contract as an assignment to the bank to pay for the loan so she gets her money and doesnt have to pay it back better for taxes too.
Only draw back is if you have to foreclose make sure grandma squirrels away some payments just in case then you can sell it again this time for cash pay off the loan and keep the difference best of both worlds.
Comment by newmexicorealestateforms — January 16, 2009 @ 8:03 pm