All Forum Posts by: Wayne Snell

Sorry to hear that Patrick. I can definitely relate but I think you have us beat. We had 5 delays on a auction in S. FL before we finally persevered. Good luck!

I definitely give a thumbs up on Paperstac. I just completed a non-performing note sale and the process is automated. Makes my life easier. I definitely will be selling more through Paperstac in 2020.

@Chris Seveney 

I have been working with Singer Law Group to handle the conversions for me

True I do not use any of my servicers to perform loss mitigation on my portfolio for exactly the reasons pointed out by others on this thread. We use The Singer Law Group. 

We have done a handful of these. In fact we’re doing one right now and are not going through a full re-qualification because the borrower has been in the property and performing for 5 years. Our attorney said that we needed to get title insurance but we expect that. The key is the borrower understands that they will now own the house and is responsible any/all liens, having real homeowners insurance and that their loan will be escrowed for taxes, etc. 

I will say that we always use an MLO for seller finance sales we originate. We also make sure to remain under the annual limit. I’m told that the Seller Finance Coalition is currently working with Congress to get the limit  increased so keep your fingers crossed and if you can volunteer or provide any financial support for that initiative I highly recommend doing so.

I’m happy  with Land Home Financial based in Santa Anna CA for my performing loans 

I am going to mirror @Steve Hodgdon as to seeking 12–15% yields. As you go up in percentages you’re taking on more risk because there’s obviously something less boring about the note. 🙂  Perhaps it’s a lower value contract for deed/land contract, or a re-performing note with very little seasoning or maybe there’s very little equity in the property.  You’re receiving a higher yield for the increased risk. Questions to ask are what happens if they default and who’s going to handle that? Most “good“ boring notes are going to yield you between 7 to 10% max. Feel free to PM me if you’d like to see what I have available. And Yes I do have some higher yielding notes as well

I use both Ross Diversified and US Risk. They are both very good. Be aware that some servicers "require" you to use their FPI. What that translates into is significantly higher premiums for crappier coverage and an almost guaranteed way to ensure you never get paid on your claim. FWIW I may have learned that the hard way ;)

Hi @Daniel E. I felt the need to chime in on this one. Hopefully it gives you some ideas, but I do want to state that this is for entertainment purposes only and not to be construed as legal advice . :-) 

I have two comments to consider. Maybe this will also get others to chime in or even debate what I say here...

1) FWIW, as part of mediation YOU get to make some demands as well. One demand could be that you will agree to their payment proposal as long as they enter into a taxes repayment plan with the county SEPARATELY from your mortgage. Many (but not all) counties will do this and since she is BK Chapter 7 they probably will be more willing to do so so they get their money. Then your company is not on the hook to pay them and it usually stops any tax FC from occurring (thus protecting you) as long as they are in that payment plan. OR...you could agree to capitalize the $12,000 taxes into the back of the loan, which might make you look like a good guy to the judge. Downside here is that you would have to advance them to the county to protect against a possible tax lien/FC. I have done this when taxes are a few $1,000 (but never as much as $12k BTW), just saying that you could. 

2) Just because you are going to mediation doesn't mean you have to accept the plan. Not sure where you are talking about, but many mediations are NOT binding (again ask your lawyer for your specific case and jurisdiction) . Just make sure you have a good attorney that can argue why the mediated plan is NOT acceptable and that it adopting it will just kick the can down the road - meaning you will be back in front of the judge again soon when the borrower fails, wasting court time and resources. We can usually prove that the borrower doesn't meet the criteria of the NOW CURRENT lending laws (Debt-to-Income ratios, credit score, etc.) For example, the $1500-2000 per month take home pay means she should not have a mortgage payment of anything more than $500-666 per month. And with whatever credit score (assume 500-550 but probably lower) she would not even qualify for the loan at all today. With the taxes being $400 of that monthly payment, the $100-266 that could be applied to the P&I and outstanding balance (whether you forgive arrears or not) would put the loan out past 40 years at 5% if not further. The attorney should argue if it is feasible that can pay for the next 40 years? These things need to be pointed out to a judge to get them to see why it isn't in the BORROWERS best interest to do this deal - not that it's a bad deal for you. Hope this helps.

If you’re selling the land in Texas be aware that Land Contracts  are frowned upon by the courts and while they not technically “illegal” most people and attorneys think they are.  At this point you definitely need an attorney to write up the contract using all the data @Dennis Weber mentioned above. Whenever possible it makes more sense to do a first position lien with the mortgage and note because Texas is such a fast foreclosure state.