All Forum Posts by: Elijah F.

Originally posted by @Tom Gimer:

Originally posted by @Kailani Tom:

thanks Tom well i think the LLC is waiting it out and milking it, the home is definitely worth more than what I owe in mortgage so the LLC is sitting pretty for right now, I just need this situation done so that I can get back on track..

If you eliminate personal responsibility for the Note by filing BK, the lender will have no recourse other than the property... and yes they will foreclose.

If the LLC is alerted to the fact that you're planning to file BK and that the gravy train is coming to a stop, perhaps they'll negotiate with you... and you could conceivably negotiate with the lender at the same time.

An interesting twist to this is who would be entitled to the surplus following the lender's foreclosure.

Anyway, keep BP posted.

 indeed interesting. but based on my experience with these, my money is on OP getting surplus, unless they have debt and there are other parties to the action.

Originally posted by @Kailani Tom:

Thank you Elijah...I have tried to talk with the LLC and no response which im not surprised about...so basically there are no other options to this property but I will need to file something because the lender is not willing to foreclose yet and Ive been dealing with this for a while now and i want it done. just a hypothetical though if the home is paid off by new owner would that wipe out the title of the LLC or would that be another issue to take up or would all that be taken cared of in Escrow?

paying off the mortgage will NOT wipe out the LLC's deed. the only way to do that would be for the bank to foreclose. if the LLC decides to payoff the mortgage because the unit has lots of equity, they could do that, and they would still own the house. the only way you get the house back is by purchasing it from the LLC or buying the unit at the foreclosure auction. also, if the bank has not filed for foreclosure, it will take YEARS to complete the process. this could drag on for a long time. look at the foreclosure section in the Advertiser and you will see court cases from 2015 and 2016. what is the LLC name? perhaps i know them. you can PM if you want.

if by super lien you mean the lender's position is wiped from the property, that is not true for Hawaii. the lender is contacting you because there is still a mortgage and promissory note attached to the property in your name. the HOA foreclosure allowed someone (the winning bidder) to take title to the property. the only options you have are working out a deal with the LLC to gain back your interest to the property, or allow the bank to foreclose. DO NOT work out a deal with the bank until you gain back your interest in the property. any deal you make with the bank will not gain you title to the property. what's the name of the LLC that won the auction?

@Tina Acevedo your GET will be on your gross rental income, so you won't "write off" that amount from your GET. You can, however, include your HOA expense on your federal schedule E.

I am not a tax expert. You may want to seek advice from one.

@Mark Minson and @Eric Gardiner

Thank you both for your input and that information is very helpful. C or D class is not an area I am currently interest in investing, although I am looking into the possibility of buying into a mobile home. But in this case, guess i'll pass on this one. mahalo.

705 S Redwood Rd UNIT 72. anyone in Utah familiar with this location? House has been up for sale for over two months and i don't know why it hasn't sold. Is anyone familiar with this area?

Also, unit is for sale by a company called Investment Property Group from Irvine, CA. Has anyone bought one of their houses or dealt with them?

Any insight is much appreciated.

@Odie Ayaga i agree with. if your parents are willing to do a promissory note against the property for their $30k, that would be the cleanest. if they want ownership, then their 1/3 share would be for rent and expenses. so the $6,300 market rate rent (even when you are living in it) would be shared 1/3 with them and 2/3 with you after accounting for and divvying up expenses. you would probably need a partnership agreement to dictate terms which will be needed for state and federal tax filings.

a w9 isnt given to only employees. if you look at the bottom of the form it states the various reasons for completing the form. i have had to fill these out when other entities pay on behalf of a renter. it is common, and probably mandatory from the IRS, for them to give you this form. it's so they can issue you a 1099 at year's end and report the payments to the irs

@Dede Christensen which island are you renting and what part?

so when you bridge the equity from one residence to another, is the loan on the first property increased by the amount of the equity? is a second lien placed on the first property accounting for this equity bridge? i am aware of bridge loans and this sounds completely different.

sounds like the lender is holding these loans in their portfolio which gives them leeway on how they construct these non-conforming loans. 

good on you for making this creative financing work for you.