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Utah House Still Wrapped, Sort Of

I made some calls today about the unwrapping of Utah.

Spoke with the buyer (fix ‘n flipper) who took over my payments on a wrap-around contract (AITD).

Spoke with the Central Bank of Utah, the escrow company which is collecting the payments from the buyer and sending it to my underlining underlying lender.

False alarm… sort of.

The buyer is paying on-time just like he should and the escrow company is servicing the payments like they should. Nobody dropped the ball here. (The buyer was a bit alarmed to hear from me.)

The problem: after checking with Central Bank (the servicing company) I realized the payments are still being sent to First Magnus, my old lender. I then remembered the loans were sold to Aurora shortly before the property was wrapped. I was supposed to notify the servicing company.

My bad.

The good thing is the buyer told me he spent over $70,000 on renovations already and is looking forward to selling the house soon for $700,000. Nigel drove by the property and confirmed that there is definitely something happening there. I’m glad somebody stands to make a profit on this deal (a fat profit).

So the skin of the wrap is solid. But the delicate tenderloin is not doing so good.

I called the old lender to see if they have the payments and to see why they are not forwarding them. They tell me “What payments? We haven’t received any payments…” I call the new lender again. They said they haven’t seen any payments either. Great!

I call Central Bank again asking for help. The nice lady said she will get me copies of cancelled checks but that’s all she can do.

Even better! Now I will have to take time off my trip and try to get to the bottom of this wrapped-up mess!

On the bright side, I am learning from this experience to be more of a guardian and manage the loose ends better to prevent the confusion.

I should probably also learn to open my mail more often.

Man, I need to get to the bottom of this soon or the lender will foreclose and the whole thing will get unwrapped. My timely buyer may not be so happy to donate $110,000 (40 + 70) to the bank.

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