OfflineHere is what I received back from an interested party on my AFF System. The survey to be filled out must not have been because I didn't receive any feedback on it. This is my first interested candidate. I will try to get the "pertinent" survey answers from this interested party but I'm wondering how I should approach a sale on this one.
Here is what I received..."I am currently residing in a town home where my wife and I are now separated. She moved out and is not paying anything toward the mortgage. I can not afford the mortgage payment myself and since BOA will not accept partial payment, I too have not paid on the mortgage.
As of 7/7/08 BOA had not issued a foreclosure notice but was told that it will happen either this month or at the latest in August.
I am working with a realtor who is pursuing a short sale but there have been no offers as of yet. Our property value has decreased considerably too making this a very discouraging situation.
I am afraid of having to pay a deficiency judgment since our property was purchased at 229K and a town home adjacent to ours just sold for 169K.
If you have any legal assistance you can provide, please contact me, thank you."
Any suggestions...
HEIDE
Get as much information about the property as you possibly can, like how long he lived on the house. How much he paid for the house when he purchased it. What is the mortgage balance, how many bedroom, bathroom, sq ft, etc, etc. You need as much info about the property to determine what's the best plan of actions. Good luck and happy investing.
I have a deal right now that i'm working on thru AFF, but the owner of the house has not been totally honest with me. When i first talked with her last week over the phone, she informed me that she owes 50k on the mortgage balance. Ive asked her to meet with me and do a walk through the house and get as much info as possible which she agreed.
After looking at the house and questioning her again, she provided different information. She now said that she owes 60k. She also informed me that the house was appraised at 110k. The house also need a major renovations both interior and exterior and the need a new roof.
I'm never the one to take advantage of someone who is about to loose their home, but my researched indicated that she bought the home back in 1996 for 40k. I've asked her if she has 2nd mortgage on the house and she said no. Asked about property tax and any liens, and she also said no. Her husband passed away last year and shortly after that, her in laws gave her the house as way of gift. I have document provided by the county recorder. The house is pretty bad condition and after my evaluation of the property, i informed her that i will call her back.
A day later, i called her and offered her 65k and take the house as is even after she told me the balance was 50k last week, and now 60k when i met with her in person. I also informed her that it would take another 15k to turn the house into a marketable and liveable condition. I also informed her that by accepting that offer, she would help pay off her debts and keep her credit from ruin.
She refused my offer and said that she needed 87k to get out of debt. I respectually decline her counter offer and told her that if she change her mind, then she can contact me anytime. The house has been advertised for the sheriff sale next month. I've tried to help her the best i can, but she wanted more than what the house is worth. She probably won't even get what i've offered at the sheriff sale and i wishes her nothing but the best.
Lloyd
There are a couple of ways to go here, a short sale or a subject to. Short sale is negotiating with the bank to get the home @ a discount. The subject to is taking over the payments on the existing loan. Both will need authorization from the homeowner to contact the bank to discuss the loan. You need to find out what the owner wants as well. Do they want to stay in the house and rent it back? Or do they just want to walk away with a clean mark on their credit? These are questions that you need to have answers to so you can provide the best option for their situation. I hope this helps, keep us posted!
Lloydsap,
Sorry to hear about the lady, she still may change her mind, if not there's a whole country full of foreclosure victims to try to help... Keep the faith!
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
Lloydsap,
Sorry to hear about the lady, she still may change her mind, if not there's a whole country full of foreclosure victims to try to help... Keep the faith!
I have a property that I am looking at, that I would like to do a "subject to" agreement on(I think). Is there not alot of risk, because the title would not be in my name. Or am I wrong?
Al
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw
At the risk of sounding stupid, How does a "subject to" agreement work?
Al
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw
never feel stupid with any question asked....Not asking would be stupid.
I have not much knowledge on subject to, so I too am curious.
thanks for asking..
Don't Wish the Past, Create the Future! - DH
Now that's not sounding stupid at all, if you're not sure of somethin you gotta ask and there's NOTHING wrong with that.
When you buy a property "subject to" the current mortgage loan, it just means that you don't get new financing.... You just leave the existing loan in place and take over the payments. Then you quickly rent the property or lease option it and let the tenant make the payments. The owner signs the deed to the house over to you; and he allows you to make his mortgage payments while he remains on the mortgage note.
It's like assuming the loan, but there a more specifics to this. I'd be happy to explain in more details, but that's the basics of it. Hope this clarifies it for you. You can always ask my anything Al, you da man!
God bless,
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
Do you have to get an agreement with the bank to make the payments? Do you do it through the original owner, or through an escrow company?
Thanks for your help
Al
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw
Great info Elana! I also like to add that whether you decide of "subject to" purchase the property or "subject to" take over the mortgage, just make sure there's no liens, second or third mortages on the property. Do a title search with a title company or with an attorney to make sure the property has a clean title. You would not want to end up with the property with 2nd, or 3rd mortgage and liens unless the value of the property exceeds all the debts. Good luck and happy investing!
lloyd
Thanks for your help
Al
Hi Al, You can bring a third party into the equation if you wish. You can submit payment to the escrow account and they can then pay the lender and any other extra to the owner if you agreed to pay more to them. You can also submit payment directly to the lender. Usually a lender doesn't care who is cutting the checks - just as long as they are getting paid.
The difference between a sub to and a land contract is that you are submitting mortgage payments directly to the owner, so make sure that the owner is then using those monies to pay the mortgage. If they are just pocketing the mortgage payments, you could be held liable if they signed the deed over to you.
Nick Walters
Walters Property Investment Group, LLC
Thanks for your help
Al
Hi Al, You can bring a third party into the equation if you wish. You can submit payment to the escrow account and they can then pay the lender and any other extra to the owner if you agreed to pay more to them. You can also submit payment directly to the lender. Usually a lender doesn't care who is cutting the checks - just as long as they are getting paid.
The difference between a sub to and a land contract is that you are submitting mortgage payments directly to the owner, so make sure that the owner is then using those monies to pay the mortgage. If they are just pocketing the mortgage payments, you could be held liable if they signed the deed over to you.
Al, Nick is correct.
You do submit the payment directly to the lender. You contact the bank (with the authorization of the seller), if they ask who you are don't tell them you're buying the property, just tell them you're contacting them on behalf of the seller to obtain the loan information and to get the payment coupons changed to your address. This way you will pay them directly, so you won't depend on the owner for that. You can also arrange the payments through the title company when you open escrow as well as get the title search to make sure there are no other liens on the property. There are more specifics to cover before you do this, please contact me directly so I can explain them, it's a lot of typing... LOL! This should answer your questions, I hope.
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
Thanks, I just talked to the listing agent, She found out that there is a large second mortgage on this home. I think I will have to negotiate a short sale to make this doable. I appreciate all the information.
Thanks again, Al
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw
I wasn't aware of the "sub to" either to me it sounds a little more in the gray zone. I don't know that I am personally comfortable still keeping them on as owner/part owner/etc. When it comes time to sell or make decisions on the house I don't want to have to go back to get their permission.
I did request all the information listed on the survey as well as a few extras from the book to get all I could out of the gentleman. I have not received any response. I explained if he thought he could still salvage the house there were a lot of great tips on my AFF website and to consider those options otherwise if he felt he had no other way out to answer the questionnair if you will and I would follow up with him to see what I could do for him.
THX again for the help...smiles to you all!!
HEIDE
Once he signs the paperwork on the subject to he has NO rights to the decisions regarding the property from there on. The deed will be out of his name completely now. There is NO gray area on the subject to, it's all legal and protects YOU completely.
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
as a newbie in this process I was wondering how will you make profit from a short sale if you are just taking over pmts?
Also if there is a property for sale with tenants willing to lease from the new owners, but the property needs repairs, cosmetics and roof repair, can I only make a profit on the property if I make neceassary repairs, refi at higher loan amt and have them pay higher rent- to create positive cash flow?