All Forum Posts by: Chris Haas

I have a "friend"  actually it is a friend but it's getting harder to be his friend.

He has a home worth roughly $200,000 under water with mortage, penalties etc up to $280,000 plus.  While I initially felt bad for him, it's getting harder to even discuss his situation.  Wells Fargo is actually not only letting to continue to live in the house after 3+ years of non-payment, they are actually paying his property taxes and even his home owners insurance this whole 3+ years.  I've never heard of a case this extreme.  I thought the backlog was getting cleaned up out but this true story makes me feel differently.  You can't find any pending foreclosure on zillow, or the local sherriff sale records like you see on so many other houses.  I can't figure how why they would continue something that can't possibly resolve itself.  Just curious if wells fargo is in more denial than most banks and if anyone has heard of other siutations where banks are paying the taxes and insurance for such a long time period.

I don't there being any "deal" to be had here except the one he is actually taking advantage of but if someone else sees an angle please feel free to contribute.

Thanks for your time

Just 1 thing if your wife doesn't have earned income I don't believe she can legally contribute to even a Roth IRA. That said a bank probably wouldn't realize that so they might have just accepted your contribution. I haven't personally pulled the trigger on my 1st rental but I hope to soon. I have maxed out 401k contributions for years and plan to keep doing that before I save additional $$$ for rentals.

I wouldn't give him the sheet. Simply asking him if he would mind you giving his competitor his sheet should push him back a bit.

I think it's wise to have more than 1 lender if possible. Just tell lender #2, that you are happy with #1, and you need a reason to change, or even try someone new. It's not uncommon for a mortgage broker to do a deal at par in order to gain the trust of a new client, if they are certain there are more deals in the pipeline.

I think people have to be accountable for the loans they sign up for. Yes some people got loans they probably couldn't afford. There were some bad apples among the brokers. I think there were a lot more borrowers that should have known that they couldn't live in a $300,000 house with combined gross income of $50,000 per year. Now people are crying foul when they can't get a loan. You can't have it both ways they need to decide you either want tighter or looser guidelines. I think we are living in a time of overreaction swing to tighter guidelines.

More directly on your topic, I think the full disclosure of fees on a hud1 is a good thing but as usual more regulations have unintended side affects which is pushing out smaller brokeerages.

@Dan N. actually I have no interest in Reading but I am checking craigslist since there is no craiglist for shillington, or smaller suburb townships. I guess I could change my city to shillington, pa but I figure noone will know where that is.

The title company question while I found it in reading is more of a general question which I appreciate everyone answering.

Interested in multiple suburbs for SFH outside of the city of reading, pa
50-120K range, should have #'s to support 70% rule.

Brick homes, or partial brick homes preferred not required.
Wilson, Mifflin, Exeter school districts a plus.

Thanks for your time

Pretty much throw your bid in and wait. The list price is a guess from all the reading I have done. They really don't know what the bank will accept, and until they have an offer that discussion can't really happen. If you have your own agent already, I would find out how many short sale deals the listing agent has completed in the past. One of the biggest challenges is having an agent to stay on top of the borrower and the lien holder.

I can't answer his question but I think it is valid. Everyone complains about a bad wholesaler saying they don't leave enough room for the buyer to make $$$. So trying to be more specific, I think the question should be, for you to consider me a good wholesaler, give some examples of price (original purchase price +, wholesale fee) compared to ARV.

Should a good wholesale deal leave the buyer with margin of a normal 70% rule? 75%? No offense I think the question was worded kinda poorly but what I'm guessing he is asking, I also have trouble finding answers too. We are trying for win/win scenarios, understanding buyers expectations would help.
(buyer of properties from wholesalers)

Example listing. http://reading.craigslist.org/reo/4075606608.html

Question is what is the motivation for dictating a title company?

I assume if you said no, I want mine they could simply turn down your offer, however, is that normally in a purchase agreement?

Please share any guesses you have as to why I see this more than on occasion. My only guess is they have some financial benefit, or just a comfort level with a specific title company.

@Account Closed Can you explain why most short sales go at fair market value? Seems to be if I'm a buyer I wouldn't want the headaches of a short sale (the waiting / the unknown, etc.) I always assumed if you could get through the paperwork, you would be getting a deal because the alternative in some cases may be foreclosure which would be more costly to the banks.