All Forum Posts by: Greg K.

Hi, I'm 36 years old, I've worn many hats and was raised in a world of science, schools and computers. REI chose ME initially as I needed to step in and protect the one and only family investment. It's been about 2 years that I've been dodging bullets, reading, experimenting, and I'm about to make my first move. Either a rehab/flip or possibly rehab/cash out refinance, right where the new Green Line will be passing through. I didn't expect it, but REI has won me over. Whatever this thread leads to, count me in!

Cheers!

-Greg Kristy

If the original principal balance was 201K, and nothing paid since 2007, I'd imagine the interest to have outrun the equity/appreciation by now?  

What's the barrier between mortgagee and owner?  I would think of 3rd party mortgage negotiation forms, or Power of Attorney forms, or the name on the deed, but not sure how medicaid would tie in here?

@ Kathie Riedel this current mortgage was taken out in 2006.  Seems to me like the big players have learned from previous mistakes

@Wayne Brooks

Bingo.  When I would bring up the settlement directly , they would deflect and make excuses.  But under the framework of this esoteric short pay program, the results seem to be identical.  One can only speculate...

it's neither. they call it a short pay off. Similar in many ways to a short sale. But rather than a third party grabbing the house at a discount, the borrower can, and must obtain the funds and show they are on the borrowers account, and then the mortgage is simply settled. No P&S, no HUD-1. They are still open to it being a short sale, and the steps required to qualify are almost the same. Like a short sale. it begins with a hardship affidavit.

@Kathie Riedel  I think others reading this will chuckle a bit, as I will of course answer your very reasonable question.  I remember when I went down that road.

The note, or actually 2 notes, as this was an 80/20 mortgage where one note provided 80% of the cost, and the other note covered what normally would be a down payment.  Then these notes were assigned, or re-assigned, or appointed servicers, and all the while actually becoming part of Residential Mortgage Backed Securities package deals.  I'm a little green on my understanding of the nuances and legalities here, but no one entity owns the note.  A trust owns the note.  Maybe.  The only thing I know is that HSBC bank has been appointed trustee of the trust that this note, or some of this note belongs to.

Some people claim you can get lenders to sell a note.  Some people claim note investing is better than real estate investing.  Most agree that this type of note is next to impossible to purchase, as a note.

The servicer, who speaks for all of the owners, etc., is willing to negotiate a reduced payoff however.  So in effect, yes. Lol.

But technically, no.

@Wayne Brooks

You are the first person to actually openly warn me, on bigger pockets and mostly in my real life trial by fire study of REI, that I had mixed up the correct usage of terminology or slang. I know this is one of the quickest ways to be pegged as a target. Thank you.

Yes I considered that these creative solutions would fall under the vast limitations that large banks must adhere to.

@Mike Cumbie

Yes this is basically what I'm learning in this third day of preliminary negotiations with this one particular bank.  It's very different from talking to independent RE professionals.  It's actually an amazing relief, after some paranoid litmus testing, to find myself discussing the specifics of my deal with no concern for being taken advantage of, or having to lie just to protect myself from other lies. etc.  There are still some obvious omissions that are totally understandable in any negotiation.  

This particular bank has devoted several hours of their VP of Business Developments time.  And he has been enthusiastically trying to craft a solution.  True, he also referred me to a lawyer.  I calmed down after hearing some more details and thinking it through.   I'm actually going to try to hire the lawyer that me 'negotiation opponent' recommended.  A true paradigm shift.  

Thanks, I'm not sure if I'll be able to procure enough skin in the game to win them over, but it's been enlightening so far.

What a controversy! Hi everyone.  My name is Greg, I've been a landlord /property manager since 2006(just one unit).

I have a background in chemistry.  One of my side ventures is vape juice "mixing".  Basically finding a prototype to perhaps manufacture.  

I recently hit the 3 year mark of being tobacco free.

Immediately I didn't even question the possibility that the evaporation/aerosol inhalation of two of the most commonly encountered food, cosmetic, and hygiene chemicals, glycerin and propelyne glycol, would be harmful whatsoever.

I heard the hype, I asked doctors.  I asked biologists, chemists, I researched.  Meanwhile effortlessly putting an end to 19 years of tobacco smoke.  Ask anybody that has a true background in these sciences.

In short, tobacco involves burning something.  Also known as a combustion reaction.  Think of an automobile engine.  Combustion reactions change lots of chemicals into lots of other chemicals, some of them being things like Carbon Monoxide, Tar, etc.

Vaping is just basically a humidifier.  Actually I just looked at the ingredients in the humidifier liquid I have.  Though much is also, of course, propelyne glycol(it's in everything) it also hassynthetic hydrocarbons similar to the newer freon refrigerants. 

Everybody who understands the science knows that the anti vaping scare is a big joke.  The government of England made a very big fuss about this:

https://www.gov.uk/government/news/e-cigarettes-ar...

If you own land, you get to decide what happens on your land.  You have more influence than just your regular vote.  You can make a statement.  You can make a statement that's the complete opposite of mine.  Or you can just stay focused on optimizing your investments.

Because I don't like cancer.  Cancer took some friends from me.  People I love.  I would advise you to:

keep the clause on the lease, since it might become an issue with insurance.  But tell the tenant you don't really care, but if they smoke even one cigarette in the house, there WILL be problems.

Chemically vaping is indistinguishable from all sorts of air fresheners and and the like.   It's impossible to "catch" someone vaping anyway.  

Here in the north east, in this state hardly any establishments allow vaping.  Our neighbor Rhode Island has never told me to go outside to vape(in clubs).

My honest opinion based on my chemistry background is that the minor concentration of PG, which is antifungal, will actually prevent mold, and you might want to consider REQUIRING vaping in your lease.  And indeed, this is an unusually honest tenant.  Sorry tobacco companies and your PR campaigns, you are pathetically dying, but I have no pity for you.

@Brian Ellis" I would take everyone’s advice with a grain of salt. Including mine. "  I think Real Estate truisms are my new religion.  I think I am somewhere between the OP's situation and yours.

But here's the truth: More like a Truckload of salt. I see the BRRRR calculator and the HML calculators. I'm finally composing my "Bias Calculator" so I can translate from REI-ese to English. Pretty sure I can smell success somewhere now.....

Would you mind elaborating, @Wayne Brooks, why neither of those options would work?

Correct and correct.  Or rather, it's a catch-22.  There WOULD be quite a bit of equity in this family owned property, if it wasn't the worst mortgage mess imaginable.  $100,000 deferred principal balance, about the same balloon payoff penalty, or $172,000 to bring it out of default to make it eligible for a refinance.  The lender, not denying any of this, has verbally agreed to a discounted pay off if arranged quickly.  If that discount figure was used to calculate the equity, then there would be a lot of equity.  But if the official pay off quote form the current lender is used, then the house is underwater.