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Posted by Reinstatement Services, Inc. on August 23, 2003 at 11:25:07:
In Reply to: florida foreclosure prior to certificate of title posted by john on August 23, 2003 at 08:20:33:
I begin this with the notion that anything is POSSIBLE...Although I think your question is more one of probability.
As I see it, you stand a 10% chance for success in this hypothetical scenario.
Four obstacles come to mind:
Protocol, Fraud, Timeliness, and a Clean Exit
Upon forced sale of property, with the exception of tax liens most all other liens are vacated. Why would debtor offer to clear title on something that is within days reach of being secured unencumbered and without threat? 2nd becomes a non-issue so far as threat of foreclosure is concerned.
Fraud -
Bene will ALWAYS consider an offer of purchase for REO so long as the offer is sterile meaning devoid of complications. Considering the debtor filed bankruptcy because he/she was insolvent and suddenly the debtor produces money enough to make a cash offer of purchase...rather than have to take the time to consult their in house counsel as to the legalities of even the hint of being party to defrauding the court system..what's to stop the bene from engaging in the appearance of interest while gathering the necessary financial information from previous owner to possibly submit to the courts for prosecution of fraud because benes are fed up with having to take back properties and carry dead weight on their books?
Timelines
10 days equates to 24 hours in lender time. Coordinating 2 lender efforts, having each confer with counsel and affected departments, waiting for response analysis and recommendations, drafting documentation, etc. will run the clock out.
A Clean Exit
To the bene, the matter has been resolved. At this stage in the game their operations processing procedure has kicked in and is running on autopilot. Enter the debtor once again to attempt to upset yet again their normal processing flow only this time the bene is totally in control and is not looking to act out the "return of the prodigal son parable". Instead, the debtor, to the bene is now a fly in the ointment that the gatekeepers must close ranks against.
And as for coming to the conclusion that the lenders are in a losing game, in the game of mortgage financing, the hypothetical debtor should never underestimate the power of insurance.
Now if the debtor was able to secure a 'dummy' buyer...
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