On the show today we talk… Bankruptcy & Foreclosures with Richard Symmes!
Here are the show notes
The Vantastic Life is…
– in Kanab Utah
Richard is in Queen Anne and Julie is in Ballard. Both in the beautiful state of Washington.
Julie met Richard during a regular brokerage transaction, and needed a referral to an attorney.
And guess what, Richard knew Julie from listening to the podcast.
Richard just passed the managing brokers exam. You get one shot, and Richard passed!
Where how, when did you grow up, and how did that get you into the real estate business?
I went to UW, worked for the Sonics, went to the university of Denver in 2008. Worked for a sports agent, but that didn’t pay.
The first job out I worked at a smaller law firm. It was right after the real estate crash. So, I got fired, but networker and found a job with a solo practitioner and doing whatever I could to help out.
After a year and a half in Denver I threw up a website on bankruptcy in Seattle, and people started to call me. So I packed up, moved to Seattle, and have been working for myself ever since.
It’s been good working for myself.
Back in Denver we were filing 20 cases a month. It could be debt settlement, or loan modification…
Trust, probate, and real estate is where we are today.
These days, what is today’s thing…
Things were slow at the end of last year, but have up-ticked in the last few months. This happens after people get money from their tax returns.
Right now, debt is at an all time high, and there’s not a solution for student loans.
These are all a big problem.
What are you thoughts on the WA state distressed owner act?
Well, I believe it’s a criminal violation, so I don’t recommend it.
That’s just another reason for having a real estate license.
You can get into some big ass trouble. Actually the rule aren’t tough. There’s not a lot of gray area anymore.
People just don’t want to learn the rules or the rules are too scary.
If you run into a person that’s in foreclosure you could help them buy more time to get the deal done.
If they have other debt issues we could talk with them about that.
And if their intent is to sell the property.
The foreclosure fairness act. You have to submit a refer to the state 20 day after they’ve received the foreclosure date. Then they can do a loan modification. The mediation process can take months. The referral has to be submitted by an attorney.
Let’s say there’s an investor with a seller that just needs more time… this is great.
Really, you could just see if they can get the loan modification. But there’s no guarantee that they’ll get it.
Once the request is sent from the bank, a mediator will be assigned, and there’s a timeline of events when documents are due. A whole package.
They might schedule a mediation 1-2 months after that.
Someone actually has to be willing to turn in all of the docs right?
If they want the most time or the loan modification. But either way, you’re getting more time.
I’m looking for the follow up timelines. For the old FU (follow up).
They could withdraw from the mediation at any time, and it would say that everyone acted in good faith.
If you have a house with over $125k in equity… you want to just sell your house.
Chapter 7 wipes out you debt.
Chapter 13 you put together a plan to repay your debts.
There are things called automatic stays, and they will stop the foreclosure sale.
You can file an emergency bankruptcy that will stop the foreclosure sale.
You will run into these people even if you’re not trying to. It even happens to me, but I don’t target them at all.
Is there a number of days that you have before you’re SOL..?
I think that has to do with the lender, and when they’ll accept funds to stop the sale.
And that’s lender by lender.
We are trying to help people, and get a deal.
The trustee takes a massive fee in the process, so that’s the worst case scenario to go through foreclosure.
Let’s say you come across someone that has a foreclosure scheduled… they could call you?
Yes, I get those calls all the time. Usually from sellers, but these calls could be from investors.
Are most bankruptcies voluntary?
Yes, most are voluntary.
To get more detailed info… listen to the podcast.
Do you have any tips for real estate investors that would be… we know we can’t go after distressed sellers… success for picking up houses related to your world?
It’s really just giving people all their options, so they know what’s out there.
Sometimes hearing options from an attorney can help to have people believe what their options really are.
Yeah, I specialize in providing options, and you make a really good point about the pre foreclosure thing that we run into from time to time.
You offer up a conversation or consult with Richard, so they can figure out what is the best option for them.
Do you ever work with real estate investors that are going bankrupt?
Sometimes I get emails about investors that are dealing with sellers.
I don’t recommend contacting the bankruptcy attorney.
Have the timelines for foreclosures changed?
Nope, still 180 days.
The first letter is pre foreclosure options anytime after 30 days late.
Minimum 30 days after that… notice of default.
Minimum 30 day after that… notice of trustee sale, and will list foreclosure date. Could be 60 days out from there
If you don’t do anything… it gets foreclosed.
If anyone is trying to keep the house… submit a loan modification document. That would be my first line of defense.
What is judicial vs no judicial foreclosure?
Most in WA are non judicial. They don’t have to go to court.
Sometimes there are sherif sales…
Are there any common threads that you’ve seen for people going into foreclosure or bankruptcy?
Not really. There are all kinds of things that happen.
Let’s say that someone is behind on their mortgage…
All trying to do they with the right intentions!
What debts can be wiped out and what can’t?
Cars, loans, etc.
Can’t… child support, martial debt from divorce.
How about the taxes?
IRS tax debt is usually dischargeable. You have to wait 3 years, and on top of that you have to have filed those at least 2 years ago.
I just realized that I’m starving!
We need to plug you into our group.
How can people reach you?
Email: [email protected]