All Forum Posts by: Chris Easterling

Thanks for the great info Jon. I was thinking that assuming the loan would be a fairly easy process, but I guess that leaves me with buying subject to the exisiting loan. So in your experience, banks typically do not call the loans when the due on sale clause is violated as long as you make the payments? I've heard that they will call it and I have heard that they will not. hmm...So, just to clarify things, when acquiring the home, I can:
a) assume the loan (not likely)
b) purchase subject to the existing loan (and hope they don't call it)
c)?

If I secure financing through a lender are they going to charge me additional closing costs? If so, that would be incredibly expensive. I guess what I'm trying to figure out is how most investors that do pre-foreclosures handle their financing the purchase...(I know that I am real estate challenged. I am working hard to get over the learning curve)

I'm a complete noob to this but I will attempt to help you with the bit of knowledge of I have acquired through my reading on here and a few books. First off, are you talking about pre-foreclosure or buying at the auction? I'm guessing you are talking about preforeclosure because, and correct me if I'm wrong, at the auction all liens are wiped out except some federal liens, which from what I am told cannot be wiped out. Maybe they can. idk. On preforeclosures you will have to contact the lien holders and see if they will discount the lien. Most lien holders, I'm sure, would rather get something than nothing, because if it goes to auction, they will get nothing. You may also want to consider getting a quiet title done.

ah. ok. That somewhat clears things up. I will do some further digging. I have not quite figured it all out. I think I'm gonna go re-read the book. I'm guessing the purchase agreement is basically assuring the owners that I will pay the closing costs, and x amount of dollars to them upon closing. It's what I am agreeing to do. Some how I thought the purchase agreement had to do with the loan. So, if I secure the financing from another lender, is there going to be a second purchase agreement. See, that's where it is confusing me. I thought the current mortgage could just be amended to put me on their, provide I have good credit etc...hmm..

I just got finished reading Thomas J Lucier's Pre-Foreclosure Investors Kit. Any of you who are just getting into or plan on getting into the pre-foreclosure investing business should seriously consider reading this book. It is jam packed full of good information and it is very easy to read. I read the entire 250+ pages in one day...now to my question(s): On the purchase agreement where it states the purchase price, is that going to be the amount left on the existing mortgage or is that the amount that you are actually paying the person for their equity? I'm a little bit confused about that part. Also, if I assume a loan, does this come after the closing or before. I've been instructed not to pay anything (liens, loan reinstatment, etc) until you have the title in hand after the closing. Is this usually how it works? If somebody has a simple sequence of events as far as how the process goes it would be a great help. I know that you find the properties, do your research, contact the owners, etc. I just need to know in what order things happen after the people agree to sell their house to you. Thank you so much for you guys answers. I hope soon that I will be the one answering the questions instead of asking them.

So I was going to buy a house before I started college this fall, but the $900 house payment on a 120,000 house was just too much..but I have been thinking. I can get a private student loan in the amount of 15,000 per year. This loan can be, as stated on the website, used for ANYTHING as long as I am enrolled part time in school. I was looking at using it to help finance a rehab project on a house I have been looking at. Rehab the house, sell it, pay back the loan (or reinvest it), and continue that pattern. Just wondering if anybody has any advice, suggestions, etc.

just curious, why do people say to PM them for "other sources"? why can't the information be posted in the forum so that everybody can benefit from it? I can see if it is something off topic, but when someone asks a question in a public forum, it should be answered in a public forum? maybe not.