All Forum Posts by: Bridget D.

#1- Fear of Success.. I've come to notice that with success in anything you loose things/people. Also things change and sometimes they change quickly. While I'm not afraid of change and I welcome it, I can't get use to the "finicky humans" that' I've encountered and loss in this lifetime.

#2- Fear of not controlling every aspect of an investment (Escrow, Title, outcome of the deal, etc.) . This is something I really need to overcome, as I'm sure it's one of the biggest reasons why I don't grind as hard as I could/should.

Great question

Thanks Andrew, I finally understand what you did and you're right :) Thanks to everyone else also, I think I will pass on this one.

And now I have another concern:

Once she does a modification if this is not legal, can someone please explain to me the reasons so that I may pass that information on to her so that she will not be remotely tempted by the "we buy houses" mail. Thanks in advance

Andew O,

I'm sorry my first post does look a little confusing. I myself broke down the total payment which Chase is requesting as a trial payment. The total payment is $1901.40 including principal, interest, taxes, and insurance. The banks basically force place the impounded account (in this case they did). The $155 payment of back taxes are only an ESTIMATE of what is coming out of the $1901.40 per month for the back taxes of roughly $50k that Chase has already paid. I hope that makes sense. The taxes themselves are $374.30 which I also deducted from the payment of $1901.40 and I also deducted the $180.00 for forced place insurance since it's included in the whole payment.

Thank you Rob K, I was not aware of that and I don't think that she is either. I will make her aware of it and have her to verify it with Chase. I personally think she should short sale but I get the impression that she's in a rush to leave town since she's made up her mind.

Scott Fey,

She would like to grant the home over to me for the $3,000.00 or I believe the correct term is "assume the mortgage" as Rob K stated. In turn (if it's at all legal for me to assume a modified loan, I will rent it out at the rates listed above.

Regarding the back taxes the bank has paid her back taxes I believe 2 years ago as the home was in risk of going to "tax sale" (I've already verified this on the Los Angeles County Property Assessor website). The back taxes are included in the payment of $1901.40 (so it seems, it's hard to know without seeing the final paperwork from the bank but that's what it looks like with the pretrial paperwork).

A gentleman I knows gives his tenants that have children a giftcard to either Walmart, Target, Toys R Us for $300.00 during the holidays and for single or older persons with either grown or no children he writes them a check for the $300.00. I've known him for 4 years and he has 3 properties all with the same tenants as when I met him. I've yet to acquire my 1st rental but hope to implement this very soon.

Fellow Biggerpocketers (Yes it's a word..Lol)

I've been reading here on Bigger Pockets for the past 2 years and have gained some valuable knowledge along with getting some much needed advice on a couple of investments that I'm sure I had no business even looking at. With the advice I received I decided to penny pitch, go on a diet (saves on food) and basically buckle down on my spending so that I would be able to purchase all cash at the end of 2012 or beginning of 2013. The saving has been successful thus far. In the meantime I have a neighbor that I've basically walked through the modification process for the last 2 years (she's a nice lady and doesn't understand much about real estate, except the fact that she owns a home). It's been a long battle but low and behold she was finally approved for the new plan that Chase, BofA, Wells Fargo, etc. has going (Global Settlement Act *I believe). The numbers came back and she went from an adjustable mortgage of $2,835 P.I. only and the taxes are $4,491.62 per year which breaks down to $374.30 per month total $3,209.30 TO A $1901.40 payment PITI @ 2% fixed and BACK TAXES OF $57,000.00 being paid back over 30 years. Unfortunately she doesn't want the house and plans on moving out of town next month, she doesn't even want to stick around to shortsale the home. I know she's getting good deal (this is my opinion) considering that 3 bedrooms in our area rent for roughly $2,200.00 to $2,600.00 per month and to add insult to injury she has a single which is detached from the home that could easily go for $800.00 to $900.00. After all of that explaining my question is SHOULD I jump on it?? Which is what she has offered since I have been the one to answer her questions, and she often times just vents which I completely understand. What she wants is $3,000.00 because she has already been saving and has a job waiting for her (a transfer) once she leaves. These are the numbers I came up with and wanted to make sure I'm assessing it correctly (using the lower numbers).

PITI $1,901.14 broken down= $374.30 current taxes $180.00 (roughly for lender placed insurance) $155.55 for back taxes and P.I. $1,191.55

Rents $2,100.00+800.00 =2,900.00
40% of $2,900.00= $1,160.00
$1,450.00+1,160.00 = $2,610.00
$2,900.00-$2,610.00 = $290.00 PLUS I think I should be adding back the $374.30 + $180.00 since the taxes and insurance are included in the payment right?? I can't for the life of me figure out the 50% rule if the payment includes PITI.

I'm either looking at a profit of $290.00 per month or more if I did this correctly. If I could get some feed back quickly that would really help me out as she is ready to do this deal and has already hinted at the fact that she's started reading the "we buy your houses letters"

I sincerely appreciate any and all feedback.
P.S.- We're located in the Westchester, CA area zip code 90045

Hi Lisa,

I do escrow in California, and have seen what you're trying to do done before and have also closed Escrow's this way (I'm not sure if it's different in your state). Normally it goes one or two ways that I've come across.

A) The deal closes with both names (all names) on title and a quitclaim deed (provided by either the title company or escrow officer) to remove one party is recorded concurrently (most times the same day or next day).

B) The contract starts with more than one individual and then an addendum and or amendment (an addendum is provided by either agent and an amendment is provided by the escrow or title company) to remove one or more parties is signed by the seller/bank and buyers/buyer (once the contract is accepted). The REO banks I deal with aren't really that finicky over name changes but I've heard of some that are. Good luck

Hi Shannon,

You could contact your local title company and either ask them to compile a list for you or request a "title log on profile" and play with the system yourself by typing in the zip code, foreclosures, absentee owners, etc. A more expensive way is to sign up for the monthly service of something like foreclosureradar.com ( I hope that's allowed). Good luck

Ibrahim you most certainly may. I stole/borrowed it out of one of Robert Kiyosaki books :)