All Forum Posts by: Jason S.

If you are dead set on "doing something"....

What rooms are adjacent? You could blast out an entire wall and build an island to connect the two - the "great room" look. Or simply cut a large opening to connect the rooms and open things up. If you know what you are doing you could do it all for fairly cheap and drastically change the look and feel of the entire home. Hopefully attracting a new tenant quickly and have the home prepared for re-sale should the right buyer come along.

You could also....
- add can lights
- make the cabinet doors match
- add some contrast in color - everything look clean but it has no "snap" - hence no real thrill to the buyer. To get "snap" you need contrast.

Underhanded indeed.

Another example of there being too many attorneys in the US.

Maybe every loan that goes under a forensic loan audit should have the borrowers' audited as to their income documentation, assets etc. Certainly many of these loans were "Stated Income Stated Assets".

One of these days the note holder is going to "bite back" and it will be a bad day for the borrower that committed federal loan fraud.

It all sounds good enough - and if it were in located in my area I could give you an opinion. But I do not know the market - and it's all about the market. Houses for $100 in Detrioit? I cannot even imagine the blight.
Anyhow - I apologize that I am not familiar enough with the area.
Hopefully someone will chime in soon.

Also - even if not yet "liened" or "fined" the code violations can still be extraordinary or things you do not already have included in your repair numbers. Just offered on another one in Riverside - 1200 sq ft by assessor - but - code violations and no fines. Looked into it deeply and discovered only 744 sq ft of the home is legal and that is not including the illegal detached garage. Nothing salvageable all needs to be torn down. So even though the surface looked one way the violations changed the dynamic significantly.

By the way , I know you are experienced and probably have these things covered but .... just in case.

Good Luck.

1. What happens if the market goes down?
2. Who is backing the guarantee if "rents" go down?

I see a lot of need for disclosure. There are a lot of SEC rules when soliciting money from investors - especially investors not "known" to you prior to the solicitation.

3. Are you using single beneficiary per home or multiple? Who is on title?

4. What about renters that do not pay? In California the rules are heavily weighted in favor of the renter - you can get tied up for months without rent - are you still offering the guaranteed return?

5. I see "hazard" insurance - I assume it covers loss of rent. I had a friend who's tenant's child stole mercury from a local factory, spilled it in the home, and then they had to pay for a full fledged environmental clean up - just asking to ensure that you are not on the hook for a guaranteed return if the extraordinary should occur.

Just a few of my initial concerns. There are others.

Why are the buyers in such a hurry - is there something specific that makes them on a "time-line"?

When you say they may be working loans that are more of a priority - why do you feel this? Is yours a small loan and the lender is in an area where they get a lot of larger loans? Is yours particularly difficult for some reason? Are the buyers borderline - so you feel the loan officer is ignoring them? (assuming the loan officer is not also the underwriter they are federally prohibited from making any determination whatsoever on a file) -
Give me some more details and maybe we can nail it down.

Lending laws are in severe flux right now so anything is possible - or more likely your loan officer is explaining something incorrectly.

When you say "8 days to close" - if this is a bank you are dealing with it seems to me that 8-days is very fast. If you are saying 8-days to first enter processing then that sounds incorrect. I have to assume that the you have submitted an application to the lender? If so you should receive some documents already in the mail - these are federally mandated 3-day docs. Within 3 days of "applying" for a loan the bank MUST send these to you. If your loan officer is holding onto your application and not even touching it for 8-days - that is a serious problem.
Maybe talk to their supervisor, other lenders in your state etc.
Look on the bright side though - if they violate the 3-day rule and subsequently fund the loan, and then your buyer happens to default - it will be a perfect file for one of these loan mod lawyers to attack with a forensic loan audit.

Just a few preliminary thoughts - this is a beginner list and of course not all inclusive.

1. What recourse do you have if title is not as they say? How deep are their pockets if you have to sue? You will want to do your own title research first - sort of a "trust but verify" scenario.

2. If vacant then you are lucky. If vacant when you see it but not when they first bought it make certain they took proper steps on clean out etc. When you take a home at auction you do not automatically get their "stuff" too. Make certain everything was handled properly and documented properly.

3. Make certain the sale looks "clean" and "makes sense". If buying from an HOA sale or sale from a 2nd mortgage - these can be overturned by a judge (first mortgage sales can be also but not as often) - so know what you are getting.

4. Certain liens can carry over after a sale. Some mechanics liens etc are not always extinguished.

5. You will have to pay up the property taxes. Not everyone remembers to check this and understand there may be thousands owed.

6. Certain IRS and other tax liens may remain and carry on the property - have your title rep check this.

7. Do not take any "out of the ordinary" properties. Major code or environmental or building and safety violations carry over to the new owner (that's you) - stick to the easy stuff.

- Those are some initial things to think on.