All Forum Posts by: Barry Taylor-Young

I'm new to real estate, only having completed one rehab thus far so please excuse my naivete:) I've started marketing recently and this guy gave me a call. All in all, I was trying to come up with a way to monetize as many leads as possible as I hear I should be doing. I was hoping I could create a winning solution to this problem by getting the lenders their money, allowing these folks to stay in their house, giving another investor 1st lien on a really nice house where the owners have been living and paying for 3 years and make some money for myself.

Bill, you're right......they can't meet the balloon! When I heard, I actually couldn't believe it had gotten this far. I'm not a mortgage broker (obviously!) but I can't understand why they hadn't tried a refi in the last 3 years even with bad credit. If they end up loosing the house, the real victims in this thing are the kids and the mother-in-law. Man, that sucks pretty bad!

Thank you Tom and Dion,

Tom, a second lien position wasn't my thought. A first lien position with definate security in the property would have been the goal if this was possible but as you and Dion have said.....this is something thats messy, fraudulent and not possible.

Dion, I understand some of the issues you are trying to point out. Court dates and lawyer fees have already started to be imposed on the borrower. I was just wondering if it where possible to work something out in this situation but I will take your advice and walk away.

Barry

Hello BPers. I got a call from a seller a couple days ago in the following situation......He and his wife bought a house in 2010 worth about 230K. The mother in-law gave them the majority of the money to pay for the house but was 55k short. Somehow, he got into a hard-money loan to pay for the shortage. He even admitted lying about the purpose of the loan......telling them it was for investment/rehab and not primary residence. The balloon is due now and the lender is pursuing foreclosure but has stated that all they want is their money back. I don't think he has tried to refinance because his credit is bad.

Is it possible for me to create a note for anything above 55k and sell it to another investor, keeping the spread as my profit? If so, how do I accomplish this?

Barry