All Forum Posts by: Jeff Smith

@John Claborn Talk with Jonathan Hill from Aim Bank on Slide Rd. They have a in house loan (meaning they don't sell it off) that might work good for you.

@David Smith, 

Do you have anyone in your circle who buys Land Notes in Texas? I have one I'm selling for the owner but am having trouble finding land note buyers.

I have a land note in Tx that came across my desk. However, it seems to be a limited field of land note buyers. Is there any in here, or does anyone recommend a good marketplace website for this type of note? TIA

@Jordan Sutherland Nice Job man, if you ever want to grab lunch or a coffee when youre not serving our city hit me up.

I have used Tasha McCormick at Lawyers Title Co. in Amarillo and was very pleased. She handled everything, fast and was always quick to communicate by phone or email. It was a double closing. 

One of my hobbies is domain name investing. Its like flipping houses only its virtual real estate instead of actual real estate. If anyone is interested I have a lot of note related domain names you can make offers on. Click here to see the list

Thank you Dave, that was a well thought of answer.

Hello fellow note investors,

I am wondering what a seasoned note holder would do if you were in my shoes. 

I have a note that is non performing. It's in my backyard, I have it boarded with Peak Servicing (which you probably know is closing their doors) It was a slow pay performing note when I bought it, they stopped paying because they seen a way to take advantage of this issue --> we needed to take a verbal agreement that the note seller (who I bought from) and the borrower had lowered the interest rate from 8% to 6.5% so the whole time Peak is trying to get this simple mod done, they stopped paying, stopped responding to Peak's letters emails and voice mails. So the mod never happened, the only thing they had was a hand written note of the change on the top of the promissory note. (which I also had because I have the original note from the seller) Peak said I could except that if I wanted to and forget the mod. So I had Peak make a deal that I would except that and forget the mod if the borrower would pay up all missing payments and get current. roughly $4k

They had told Peak that they had all the payments that they didnt make ready to pay but were nervous about the loan mod, were confused, didnt understand, etcetc. 

Well weeks went by and finally they made a payment of $1100 - So I had Peak try to reach out to them to find out whats going on, where the rest of the payments are, and got no answering the phones, no responding to letters, no returning calls, nothing so I told Peak to send a demand letter. 

They did, its 30 days to pay up or we start foreclosure. 

So hear is where my cross road is now, the 30 days is up - What would you do? (Remember Peak is closing their servicing doors) I have talked to other servicing co's and they really dont feel to good about taking this loan in the middle of the issue, or they want to charge hundreds to pick it up, or they want to start all over from the beginning. 

So would you take it into your own hands and contact the borrower yourself? (What I am thinking about doing).

Put the foreclosure off and board somewhere else? 

Foreclose with Peak (I think they will still see it through) 

Maybe take back as REO and deal with that?

Thanks for your help

@Allan Riley, I have had attorney's write contracts for me several times, and the cost has never come close to $1000. If I can be frank, I think this guy saw you coming a mile away. 

Now, as far as a lease option, in Texas, your buyer has only 6 month to exercise his option to buy, after 6 months the rules change (do some real research and find out the laws on lease options) the buyer could demand all his down payment money and all the payments back from you. 

What you need to do is create a owner finance promissory note between you and the buyer(actual term is borrower) close at a title company that will provide you with a lenders title insurance policy, transfer the deed into the borrowers name, find a loan servicing company and board the loan with them. They will do all the rest. If you have a existing loan on the property it will be wrapped into the loan you create like @Jay Hinrichs @Wayne Brooks and @Scott R. have talked about. If you have picked up this property from a seller who has a loan and you took it subject to the existing mortgage then you will need to send the bank a form that allows you to speak to them on the sellers behave, get a POA for the insurance, or cancel that policy and get a new one. Either way, the 1st lien holder (bank) will be on the policy along with the seller, you and now your borrower. (Not so easily done)

There's a lot work/risk in doing real estate like this so make sure you know what your doing. 

If your trying to sell this paper you created, I doubt you will find a buyer (at least not a smart one) but if you redo it the right way, you should have no problem selling it off to a note investor. (After its been seasoned anyway)

@Richard Stephens 

The best answer is not a answer but a recommendation.

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