All Forum Posts by: Malcolm Burton

Understood. Both lenders have a lender approved short pay option and application that malcolm spoke with them about and they both asked Malcolm to fill out the application for review. Although most post seem to implicate or imply that intent may lean towards a fraud or rip off, that is not the case here. The mortgage company is motivated to get the property off their books. Yes they can foreclose. But they would get less than what Malcolm could offer in a short pay - again the short pay is a legal, lender approved application process with no fraud or ugly no on and a required tax form (forgot the number) that must be filled out to show the IRS that some sort of 'income' indirectly was received. The accountants amoung you will understand that part better than Malcolm and if Malcolm is able to go that way of course my accountant will consult appropriately. The idea and point of Malcolm's post is that since both lenders not only have opened the door to the short pay by myself, but actually have foreclosure proceedings on hold waiting for Malcolm to come forth with financing for a short pay, Malcolm is obviously looking for investor or hard money to take this path - since THEY are opening it up and sent the application for Malcolm to do it. Why would the mortgage company do this ? Because at time of purchase, Malcolm paid appraisal price appropriately. But in Chicago where homes have dropped drastically in value, current appraisal and bpo numbers are what are given above. At foreclosure the lender would get even less especially after legal fees. This above board, completely legal, appropriate way to work with the lender given the opportunity they are offering is what Malcolm is trying to do right now and find hardmoney or investor resources to down that path. But Malcolm is taking the advice above and not going down any path that may even appear suspect. So the thank you above was sincere.

To both Scott and Mark, the feedback is appreciated. No, Malcolm didn't know what was explained above but that is the point of learning. Make mistakes, learn from it and not give up and try again. Thank you for the posts and the feedback.

Ok maybe Malcolm's post is unclear. I am Malcolm. These are my 3 properties. Yes before the real estate bubble Malcolm purchased the properties for over 600k all together. Now that the bubble has burst they are worth less, and yes the bank is willing to short sale. But that is why this seems to be a good deal and why Malcolm (again I am Malcolm) is motivated to find financing and keep the properties. The banks' willingness to sell for lower amounts means now the properties have excellent cash flow potential. Does this help clarify ? And yes Malcolm has a solid plan for how to turn the properties around. One of the three doesn't need repair at all. The other one Malcolm can fund the repairs myself. The larger property that needs a lot of repair is not in foreclosure. So really what Malcolm is lacking is not vision or a plan, its financing so that either I can do a short pay or a short sale but with the intent to get the property back in Malcolm's name.

Hopefully this clarifies.

Is Dustin an example of such a member ? Or does Dustin mean search the forums and find funding posts where members 'advertise' their funding resources ?

Malcolm has 3 properties currently. Two are in foreclosure and one is not but needs extensive repairs. Malcolm's objective is to get them out of foreclosure and make them income generating properties. This can be done either by doing a short sale to an investor who in turn leases it back to Malcolm or mortgages it back to Malcolm via owner financing for a year until Malcolm refinances out. Or it can be another method, Malcolm is open. After repairs, the properties collectively can clear 5000 after mortgage, taxes, insurance per month so the potential is there. Because Malcolm originally negotiated low short sale amounts on the properties, it is worth the effort to try to either find an investor to help Malcolm refinance or short sale but with a lease back. The ultimate goal is for Malcolm to keep the properties in my name or either eventually get them back into my name. Malcolm has BPO and so forth as well as repair quotes. Malcolm went through the entire process and we were just days from closing so the ground work for approval was already laid.

There are 3 properties all brick:

6624 Marquette in Chicago
2 unit with no repairs necessary except maybe minor interior cleaning normally done when a tenant leaves. Bottom unit rented with 625 and top unit 3 bedroom rented for 900 with section 8. Now will rent out second floor to new tenant. Lender approved short sale for 59k. Originally purchased for about 255k. But foreclosure coming forth in early March.

4801 Grasselli, East Chicago, IN
4 unit brick. 2 top units operational. Malcolm lives in one and tenant rents other for 650 per month. Two bottom units need repair quoted at 7500. Three 3 bedroom and 1 one bedroom. Each unit can be rented for 650 or more on the low end. But malcolm makes conservative estimates only. Lender approved short sale for 67k. Originally purchased for 147k. But foreclosure early March.

8016 S. Paulina in Chicago
3 unit brick with basement. Each unit has 3 bedrooms. This building is not in foreclosure but original loan package included it with a lot of repair funding. Repairs are about 75k. Lender provided half with draw schedule based on progress. Units originally rented for 950-1000 each. Originally purchased for 300k, Lender approved short sale offer of 30k.

Malcolm's objective is to long term retain the properties due to the investment made in them etc. The gross rent total after repairs is about 7k. The mortgage note for the original load package below was 175k including repairs and 140k without repair funding.