Purchasing Debt On Apartment Building

Q: I bought the debt on a property from the former Resolution Trust Corporation, now the Federal Deposit Insurance Corporation.
 

The bill-of-sale was intentionally misinterpreted by a federal court in Texas. What can I do to undo this erroneous decision and recover my 155 unit apartment building?

A: I don’t know why a Federal court would “intentionally” misinterpret a document, but, presumably, you have been represented by an attorney in your case before the Federal court. If the decision of the Federal court was against you, you would have a right to appeal the decision to the next level. If you were not represented by an attorney, you should hire one and have him file the appeal.

It’s unclear why you were given a bill of sale. If you purchased the debt on the property, you should have received an assignment of the mortgage and the note should have been endorsed to you along with the other loan documents. You may not have referred properly to the documentation, but if you received a “bill of sale” for the sale of the loan documents, it may be that the loan was not properly transferred to you.

You will need to revisit the transaction in which you purchased the debt and make sure that the paperwork adequately transferred the debt from the FDIC to you. If not, you will need to make sure that the FDIC does, in fact, issue you the proper documentation for the loan.

If the loan went into foreclosure and you were attempting to get the property in lieu of payment, you need to make sure that you have the right to sue the owner of the property for the building. If your loan documentation is improper, you won’t prevail in your quest to acquire the property.

Sit down with an attorney that has extensive knowledge in loan foreclosures and commercial lending work to make sure that your paperwork is in order so that you can determine the proper course of action.

Samuel J. Tamkin is a Chicago-based real estate attorney. Ilyce R. Glink’s latest book is 50 Simple Steps You Can Take To Sell Your Home Faster and For More Money In Any Market. If you have questions for them, write: Real Estate Matters Syndicate, PO Box 366, Glencoe, IL 60022 or contact them through Ilyce’s website www.thinkglink.com