OfflineI'm working on my first deal. The seller is about one year in the rears with and first and second mortgage and wants to walk away from the property, seller willing to sign over property to me. I had her summit the paperwork to the bank to see if we can modify the loans. The bank is asking her to make payments while they work on the modification. It’s a two family house both units are vacant. Can the property be rented out with the mortgage in the rears?
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so here is a lesson for you right here. LOL.... it's called "ARREARS". WHEN A MORTGAGE OR RENT IS IN ARREARS IT MEANS THEY ARE BEHIND ON PAYMENTS.
hope this helps and you can laugh at it. we are all learning here....
in answer to your question. i don't know anything about mods. but i don't see why not.
is the owner thinking of renting it OR are you gonna try to rent it ???
wishing you the best
fellow DG'ER
WALT
You scared the hell out of me there for a second.
Longhorn
Of course the house can be rented out ... some owners still collect rent from tenants & don't even disclose the property is in foreclosure while they're not even making payments any longer. The tenants are unaware until they get the sheriff's notice to vacate. If they can get a loan modification, then you could take over the property subject to & just make the mortgage payments directly. But keep in mind you might have to bring the loan currant depending upon the modification. I'm sure that right now between the 1st & 2nd mortgages the house is way upside down. Make sure to check comps, so you can compare what the modified mortgaged amount will be so you would have equity in the property & positive cash flow.
Keep working with the bank on loan modification. If you have renters lined up and have a down payment to bring the loan current or even close to current, I doubt the bank could care less who's money it is. Why don't you try to get a forbearance agreement between You, the owner, and the bank? Try to find out the person in charge ( not someone else ) at the bank. If I were you I would be doing everything possible to find renters, or advertise this deal to other investors as a wholesale deal, many many way's to work this. I would love to be in you're position. Good Luck
Longhorn
Is this property in San Fransisco?
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Determine what the rents would be. If you can't cut a deal where the rents will cover mortgage, taxes, insurance, and expenses, why get involved? Regarding renting while in default, there may be issues with an "assignment of rents" clause in the trust deed or possible rent skimming issues. Tread cautiously.
The Castro district?
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
New Jersey
How are you doing in the REI ? Any good news to share with us?
Good Luck !
Paul T. La Moy
we are all learning here LOL.....
freddie you still here ??