I have been dealing with Kip Schoning in a real estate civil matter that should have been resolved in a few days for the past 18 months. I mearly lost my home to forclosure because of Mr Schoning's actions. II hope to find other with similar stories, especially involving real estate and legal system dealings with Mr Schoning.
There is another article here on IMC about slum lords that mentions Mr Schoning several times.
Mr Schoning is a property speculator. He buys and then rents "as is" or resells property on contract. Per county records hundreds of properties have been bought and sold by Mr Schoning. He is almost constantly in default on one property or another. He is well know in Corvallis as a slum lord that preys on students and low income renters. Mr Schoning lives in an up scale neighborhood, owns several expensive car, travels and lives a pretty nice life. He thinks of himself as a skilled businessman and show no concern for the people he scams to support his extravagant lifestyle.
Another area of concern is the legal system that allows cases like this to go unresolved for so long. In my opinion the system favors people like Mr Schoning over his victims. For example, my attorney has tried to file a "summary judgement" so I can seize what I am owed from Mr Schoning's (considerable) assets several times and the judge (Judge Rodes in Marion County) denied the action despite the long, documentable history of inaction and avoidance on Mr Schoning's part.
I was the one loosing my home here, not Mr Schoning! No one was driving by his house, walking around his yard, knocking on his door or sending him quick cash offers to avoid foreclosure. I originally paid just 58,000 for this house, over the past five years I have put 100's of hours and about $20,000 (in addition the $23,000 in HUD loans) into repairing it. It is my HOME. Yet time and time again, I had to wait for Mr Schoning and his attorney to use all his legal options before finally doing EXACTLY what I had asked for the very first time I called him after gtting the auction notice.
THIS IS MY STORY:
In May of 2004 I asked Mr Schoning to allow me to refinance the house I purchased from him on contract without paying the pre payment penalty. He refused. Interestingly, he was ALREADY in default on his senior loan at the time. My refinancing could have ended his default. He chose instead to continue to take my money and divert it for other needs.
I first learned of the default in September 2004 when I got a letter notifying me that my house was up for auction. Apparently, Mr Schoning had not made a payment on his loan for some time, in addition, I learned his contract stated that he was prohibited from resell the property he sold to me.
I was completely willing to refinance and pay everying including Mr Schoning's default and the senior seller legal fees. Mr Schoing did not respond, which over time I have learned is how he deals with the unpleasant consequences of his actions. His attorney refused to deal with me directly so I as forced to retain an attorney.
I had financing ready to go by early October. My attorney vigorously pursued a resolution. Mr Schoning and his attorney stalled at ever possible opportunity. EVERY legal response came at 5pm on the last possible date. Every possible maneuver to gain extensions was used. He finally signed the Mortgage papers in January 2005. The public auction to sell MY home was less than 18 hours away. The balance on the mortgage was about $38.000. Because of legal fees and interest (on two loans) I paid over $50,000 to keep my house. Plus and additional 23,000 to pay off ZERO interest HUD loans that could not be refinanced if the new loan was for $ than the original loan. As I had not option but to refinance for a higher amount I had to borrow enough to pay the HUD loans as well. This $73,000 does not include MY legal fees.
Now an entire year has gone by. There is still $5,000 of my BORROWED money sitting in escrow awaiting only Mr Schoning signature for release. I had intended that money to cover my attorney fees, court costs etc. Again, Mr Schoning delays or ignores any attempts to settle. I offered him a VERY reasonable compromise in September. His way of refusing, as usual, was to simply not respond. My attorney estimates that my financial loss over length of my new loan will be over three times what I would have settled for. Mean while my attorney fees continue to grow.
Where is Mr Schoning in all this? I can't even guess. He will not sign to release the money in escrow, though he has not made any legal claim on it. He does not respond to mail or phone calls from either my attorney or the arbitrator assigned to the case. He did not show up for a court dated in October that was scheduled months in advance. He actually told the Judge he "forgot". Arbitration is set for Jan 29th. Not surprisingly Mr Schoning has not paid his half of the arbitration fee. I will likely not recover my share, $250.00.
Mean while I see his ads in the newspaper "wanted any real eatate, cash in 48 houes call Kip at..." so I guess it is just "bussiness as usualy for Mr Schoning.
I am thinking he just expects me to give up and go away. In case he has reason to be reading this PIGS WILL GROW WINGS BEFIRE I GUVE UP ON THIS!
I hope you are interested in this story, please forward it to anyone else who might be. I a willing to bet that there are many more sories to tell.
People need to know.