This is my story of the Purchase of a house on contract and the now over 18 month effort to get economic justice from the seller. Kip Schoning is just one of many people who do this. Hopefully most are honest investors that deal truthfully with the people they are selling their real-estate to. If you are considering buying for Mr Schoning I recommend you RUN the opposite direction as fast as you can!
If you are considering buying a home on contract go to the court house and check the sellers records. If you are finding tax liens, default notices, foreclosure sales or litigation between the seller and from buyer. RUN! Remember if the seller lives in another county it would probably be a good ideal to check the records in BOTH counties.
Ask the seller for his information and run a credit check on him. If he will not do this then he clearly has something to hide.
Consider posting a request for information about the buyer on the internet.
Have an attorney look at your contract to insure it protects you from foreclosure. If it does not pay him to rewrite it. If the seller is honest he should not object to you trying to protect yourself.
Don't be trusting and get lied too, like I did. Read my story below. You do not want this to happen you your family!
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 nearly lost my home to foreclosure 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.
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 his 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 everything 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 over $5,000 of my BORROWED money sitting in escrow awaiting only Mr Schoning signature for release. Again, Mr Schoning delays or ignores any attempts to settle. I offered him a VERY reasonable compromise on Aug 8, 2005 and again on Jan 31, 2006 at his request . 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 and has returned just one of my phone calls . He ignores phone calls from both my attorney and 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 was re scheduled from Jan 9 to Jan 29th. Not surprisingly Mr Schoning has still not paid his half of the arbitration fee. I will likely not recover my share, $250.00.
Our most recent arbitration re scheduled for Feb 8, 2006 was postponed at Mr Schoning's request. Apparently he is to busy to be available on a day that has bee scheduled science early January. He did not show up to court in October because he "forgot, yet the court has allowed the arbitration to be rescheduled for the fourth time now
Mean while I see his ads in the newspaper "wanted any real estate, cash in 48 hours, call Kip at 541 758-0566 so I guess it is just "business as usual" 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 BEFORE I GIVE UP ON THIS!
I did hear from Mr Schoning last week. I think it was in response to people calling him about my need for the money he is holding in escrow that I need desperately to save three dogs for a pupymill in MO. Pleasant as ever he asked me what it would take to resolve this out of court. I sent him my offer and asked he contact me by Thursday. I was very surprised when I came home to find a message on my answering machine. Well no response to any of the messages I left for the next three days, in fact my calls go directly yo voice mail! Today I learned that at the very same time he was "trying to work things out" he was writing to the court to request ANOTHER postponement of the Arbitration.
I hope you are interested in this story, please forward it to anyone else who might be. I am willing to bet that there are many more stories to tell.
People need to warned. Please tell your story here or contact me.