If mortgagor won’t accept returned deed nor pursued foreclosure, what would be your options as corp. owner?

Bought station 5 yrs ago. Have had many contract issues with my gas distributor where it has cost me many dollars to legally make them abide to the contract signed. Through no avail. Gas distributor is also mortgage holder on property they sold to me. I am out of money and have not paid mortgage since Oct. 2007 and property taxes about the same time…They started foreclosure proceedings in Nov 2008 at which time I hired an attorney who negotiated a deal to return the property and stop foreclosure in Feb 2009. It is my Corporation that owns this property. To date the mortgage holder has not accepted the deed and is not going forward with the foreclosure proceedings! I can’t afford any more attorney fees for more proceedings and consultations. Because foreclosure was recorded, no real estate will market the property. In it’s present situation it is un-rentable. Is there any way I can sign it over for the unpaid taxes, or do I just walk away by makeing my corporation insolvent ?

Many mortgagees (lenders) are not completing the foreclosure process to avoid carrying costs once they are in title. Especially property like yours which is probably classified as a toxic asset. You can’t force them to accept a deed in lieu of foreclosure, however if they aren’t honoring the agreement your attorney made with them, then you would have to take them to court to enforce the agreement. You’re probably better of to walk away and dissolve the corporation. However, read your mortgage as you may also be personally liable for any deficiency balance.

realtor.sailor

Truth about real estate foreclosures

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