All Forum Posts by: Jay Hinrichs

Hi @Donald Hatter, 

The only way that someone can assume an FHA mortgage is if the home is their primary residence, which most investors cannot or are unwilling to live in the home for a year to satisfy those restrictions. That is why they are trying to implement a subject-to financing strategy to purchase the home. I am not a fan of most of these contracts as they protect the investor, not the homeowner/lien holder.

If you had a VA loan, an investor could assume it without the primary residence restriction. There is a website WithRoam (https://www.withroam.com) that allows you to see all FHA and VA assumable loans. I utilize this website often to find VA assumable loans for my investors, as a lot of times, the low interest rate allows the numbers to pencil out in a LTR rental scenario

If you have any other questions on it, feel free to DM me and we can jump on a call. 

Too late. As I was writing my response to you, Chris, I received this email from the CMA a few minutes ago. It addresses your question:

"Despite the hard work of our lobbyist, Mike Belote, General Counsel, Robert Finlay, Elizabeth Knight’s entire Legislative Committee, the extensive outreach program for industry assistance, and the support of many legislators, the California Legislature just passed AB 130. When the Governor inevitably signs the bill it will become effective immediately, as early as Tuesday, July 1st. Section 2 of AB 130 will significantly change the origination, servicing, and enforcement of subordinate liens in California. Specifically:

• AB 130 will render subordinate liens essentially unenforceable if any of the following has occurred during the life of the loan on ALL residential properties (including 1-4, 5+ (apartments) and mixed used) whether or not the loan was originated as a consumer loan or as a business purpose loan (this also includes lines of credit):
• Failure to communicate with the borrower for a period of 3 years;
• Failure to send any required monthly mortgage statement;
• Failure to send an ownership or servicing transfer notice; or
• Sent the borrower a “form” indicating that loan had been written off (including a 1099).
• Before foreclosing on any subordinate lien, the loan servicer must certify, under penalty of perjury, that none of the above events have occurred ever, by any servicer of the loan. It would be doubtful that a loan servicer would risk going to jail to certify acts that happened on another servicer’s watch, even if they believe everything was done properly."

This statute applies to all subordinate mortgages. (See your section “b)” above). No sane servicer would sign the required certificate. I’m curious what happens if we service our own loans. Does this apply to the foreclosure trustee?

I have to agree with @Patrick Roberts. I can’t believe there won’t be a TRO against this almost immediately. Seems crazy.

Hope everyone collects a PG.

@Sushil Gupta - that's like asking which tech company will be the next google - if we knew the answer, everyone would be buying properties there right now.  

hard money cannot lend on primaries. it is illegal. i do have a credit repair contact i can put you in touch with

While I am project managing the cosmetic work at the latest multi deal (should be wrapping up with that by end of the week) I am now ramping up my efforts in finding a path to buy land and build a multi. For the highest return on rent I think my 1st build will need to be in the city proper. Pilsen, or comparable...will need to be a walkable area 10-15 min drive to downtown and land cost that is reasonable, this will be the hardest thing I have ever done but I am charged up for the challenge. 

I think it's from when the listing is scheduled to go live publicly - not when the contract is signed. 

Compass isn't in Oregon and their argument is ridiculous: "We want to keep it private, but you can't..OR we want to keep it private until we can't sell it and need more exposure."