All Forum Posts by: Jay Jasunas

@Zachary Taylor

You could pay the taxes yourself to keep it from going to tax sale, that would protect your interests as well. Then you could wait to foreclose on whichever heir ends up with the property. 

This one is pretty complicated and you should talk to an attorney that knows the local laws regarding tax sales and probate. I believe the tax sale is the only thing that would trump your interest in the property, nothing with probate. 

@Zachary Taylor

I am guessing the house is going to have to go through probate. You are going to have to start foreclosure to protect you interest in the house. I don't think the heirs can do a mod with you if they don't have title, they can however pay you in the meantime to stop foreclosure while probate plays itself out. 

This one is going to be close for you to make money if you have to take it all the way to the end.

Good luck, I'm rooting for you.

@Ethel Weaver

Unfortunately a lot of shoddy owners/contractors will just replace the old wiring behind the outlets and not all the way back to the box like it is supposed to be done. On old houses you need to remove one of the outlets completely and look behind to see how they are connected. 

I am not sure you have any recourse at this point. 

@Aaron Moore

The same thing applies, you want as long an amort as possible and the seller will want a shorter amort with a balloon payment. Ask for 30 years amort with no balloon and negotiate from there. 

@Aaron Moore

The seller is going to want a high interest rate and you will want a low one. It also depends on the other factors of the deal such as purchase price relative to market value and other competition. 

If the other factors of your deal are straight forward with no special concessions then I would offer him 6% and negotiate from there. He will probably want more, but you have to start somewhere. Try to have him throw out the first offer.

@Hanh Vo

Without knowing the numbers on your deal such as FMV , UPB on both 1st and 2nd note it hard to give any advice.

But in general you can probably negotiate a better deal directly before it hits foreclosure again then compete with everyone there.

@Rick Munoz

Welcome to BP Denver.

Since you are renting now, I would suggest finding a fixer upper and house hack it for the next year or two. This is a great way to get started and teaches you valuable skills for future deals. Funding for your primary residence is the cheapest easiest financing to get so a good place to start.

Good luck and hit me up if you have any specific questions.

It is all his money for the down payment. This would only be a loan after the closing. Much the same as if he went out and got a HELOC the next day. None of this money is under the table or being paid to him prior to closing.

Just was not sure of the mechanism on who sets up the note. Is the title company capable of this or do I need an attorney to draft the note and deed.

Thanks and I hope I clarified the situation. I know there is very little equity to protect me but that is not my primary concern.

I am selling a rental home to my tenant. He is getting a conventional 1st mortgage and is using all of his savings for the 10% down payment. He would like me to loan him $25k as a 2nd note the day after closing so he has some reserves, this is only 4% of the purchase price. 

I am thinking of structuring it as interest only with an 18 month term, he is good with that.

What would be the process I need to go thru to get this done? I don't want to screw with the sale, so is it best to contact the title company the day after closing to set up the promissory note and deed? How much would this typically cost?

@Wade G.

I have sold a couple of my SFR to the current tenants. One was a lease option, the other decided he was going to stay in the area for a long time and liked the house. Both worked out great.

You identified the plus points already, no inspection repairs is another plus. Rent collected every day to closing is awesome. If you bought well, then selling with all of these advantages you should be able to buy well again.  Good luck.