Real Estate-My Dealings with Kip Schoning Corvallis Real Estate "Investor"
I have consoladeted and updated my origional comment written in 1/06
My ordeal with Schoning began in August of 2004. I almost lost my home to foreclosure because Schoning defaulted on HIS loan. A simple call to ask me to pay this mortgage directly would have avoided the foreclosure. This whole issue could have been settled in a few days without attorneys has now dragged on for almost two years and cost 1,000's of dollars. I await the decision of the mediation, but even if I prevail, I am almost certain that Schoning will avoid paying what he owes, forever if possible.
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. Others have called him a slum lord that preys on students and low income renters. Schoning and his wife a Realtor, live in an up scale Corvallis neighborhood, own several expensive car, travel and live a pretty nice life. He thinks of himself as a skilled businessman however he show no concern for me or the people he scams to support his extravagant lifestyle.
THIS IS MY STORY:
In May of 2004 I asked Kip Schoning to allow me to refinance the house I purchased from him on contract a few year earlier without paying the pre payment penalty. He refused. Interestingly, he was ALREADY in default on his senior loan at the time he did not tell me this. 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 late August 2004 when I got a letter from an attorney notifying me that Schoning was in default and my house was up for auction to settle his debt. Apparently, 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 called the title company that handled my payments. I was told that Schoning income had been going to the IRS to settle a past debt. I was told that my payments, and others had been diverted to the IRS since May.
I was completely willing to immediately refinance and pay everything including Mr Schoning's default and the senior sellers legal fees. I called Schoning but he did not respond. Over time I have learned is how he deals with the unpleasant consequences of his actions, HE IGNORS THEM AND HOPES THAY JUST GO AWAY. His attorney refused to deal with me directly so I as forced to retain an attorney.
I immediately retained an attorney. I had financing ready to go in just a few weeks. My attorney vigorously pursued a resolution. 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 early 2005. The public auction to sell MY home was less than 18 hours away. The balance on the mortgage was actually 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 a ZERO interest HUD loans that could not be refinanced if the new loan was for $ than the original loan. As I had no 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 even include MY legal fees.
Finally, in Late January 2005, after much stress we closed on the house. The end result? I had to wait for 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 getting the auction notice! Meaning I had to cover the cost of five additional months of payment on both loans. We also has to agree to leave the amount of the "prepayment penalty" in escrow to get Schoning to sign off on his mortgage. Did he really think I would pay a penalty when the whole mess is his fault?
Today is July 5th, 2006. Believe it or not there is still about $5,000 of my BORROWED money sitting in escrow awaiting Mr Schoning signature for release. I offered him a VERY reasonable compromise before the trial date in September 2005 and another in January of 2006. He called me and ask what I want to settle in January. In both cases his way of refusing, as usual, was not to respond to the offers at all. My attorney estimates that my real financial loss are over three times what I would have settled for. Mean while my attorney fees continue to grow.
In October of 2005 Schoning did not show up for our court date. This date was scheduled months in advance. He actually told the Judge he "forgot"! Interestingly his attorney also "forgot" to show up. Arbitration is scheduled several times. Schoning would then cancel it. Finally, in February, the court allowed Schoning to choose that date. He agreed on June 20th, apparently this was the first date he could get away form his busy life.
What I learned from watching Kip in action at the mediation could fill a book. But really nothing much worth repeating... just look up narcissist in the dictionary. He shows up without an attorney and a convoluted story. Not surprising he presented himself as the victim. Actually he was pretty convincing in the role too. Then I remembered that it was me that almost lost my home, not Schoning! No one was driving by his house, walking around his yard, knocking on his door to have "a quick peek inside"!
Schoning does not have a clue how wrong he is or how much this has effected me or my family, Not only does he refuses to accept that he caused me ANY economic damage he all but said he did me a favor because it got such a "favorable" interest rate on the new loan. He seems to forget that he was in default and to save my house I paid EVERYTHING, so far this has not cost Schoning ONE CENT. In fact, I think he is still far ahead on the deal because he got my down payment and about 5 years of ON TIME mortgage payments PLUS and addition $50.00 per month I paid towards the Principle.
There is one amusing story: At one point during to arbitration Kip said that the house he sold me was "in pretty good shape compared to the homes he usually purchases". The furnace did not work, the hotwater heater was 18 years old. The appliances in the kitchen were "harvest gold" (vintage 1960"s), The basement flooded when we used the hose in the backyard and the toilet was about to fall through the floor into the basement. I could go on... I purchased the house in March but could not even move in until July. The house was truly UNINHABITABLE and filthy. I could not even get homeowners insurance until the bathroom was repaired and some of the electrical repair was was done.
The house was priced accordingly and I knew what I was buying. Still to hear him actually question me and ask me what I did with the HUD loans I got was unbelievable. Like I did not need to do anything and the house was in "move in condition". Did he think I got a federal loan because I wanted a pool or a spa tub? If this is Schoning's idea of "good" condition I really feel for those of you who rent from him! Schoning admitted to owning "about 175" properties. He said he did not know how many where currently in default. I think the only responsible answer would have been NONE, but that is just my opinion of how to run a business. Actually, though he did not answer the questions, there are several defaults listed for both Linn and Marion Counties on the web and 35 currently (some with reversals) listed in Marion County Court records as well. I also noticed a new purchase in Sweet Home in 1/06. How does this guy get a mortgage? How does he get away with not showing up to court? So many questions!
Do you have a story to tell? Here is your chance. Please do tell your friends and ask them to contact me via email with their experience or just leave a comment here. I am not expecting Schoning to comply with the arbitrators decision. He can appeal to the judge, but the outcome is not likely to change. I am not expecting to see the money I am owed any time soon. Actually, I am expecting a jury trial in my future (or at least the threat of one) and need all the support I can get!
A quick internet search found all these business as having the same business are attached to Schoning's mane or have his address and/or phone number as Kip Schoning's home address in Corvallis Oregon:
1. Bula Reality
2. Michelle Schoning Realtor
3 Corvallis Massage Therapist and Oregon Massage Spas and Massage Center
4. Lifestyle Limousines
5. Synergistic Investments
So if you are involved with Schoning or have had dealing with him in the past post here or contact me privately, maybe we can help each other!
If you are not yet involved with Schoning take my advice and stay far away from him any any "enterprise" he might be involved in as you can.
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