All Forum Posts by: Josh Engelhart

If you become an authorized user on their mortgage it will affect your credit. It will make it look like you are severely delinquent and possibly foreclose on a mortgage loan. Basically credit suicide.

The seller's would have to initiate the short sale process. They generally just need to submit a form and some paperwork similar to applying for a mortgage. If you can't get them on board you'll have to wait until it gets foreclosed on and offered for sale.

Shop around for personal loans. If you are credit worthy (high credit score, stable income) you can get pretty favorable terms. I know SoFi will do $50k at 5.5% on a 3 year term or 9% on a 7 year term. When I'm out of other options or if the right "cash" deal pops up this may be the way I go.

Maxing out your cards definitely will hurt your credit score every month. This will make the number of 0% credit card offers and refinance options get less favorable over time and eventually go away completely. If you don't pay them off during the 0% phase all of the interest accrued over the 9 - 21 months at (fill in your ridiculous interest rate here) will hit you in the face.

If it's the only option and the numbers work I'd still go for it.

 You can do a conventional loan with a higher than 80% ltv but you will have to pay for mortgage insurance. If the ltv is under 80% you won't have to pay for mortgage insurance. If you buy way under market value or repair the home you may be able to increase the value faster. You don't want to refinance too many times because it is relatively expensive.

I am looking for a realtor local to Columbus, OH to place bids on HUD homes. I strongly prefer past experience with HUD bids. You must have an active NAID. Looking to place bids immediately and in the future.

I have the same fear. I've come across some 4 unit properties listed at or just above the 2% rule. They aren't necessarily places I would want to live. Even factoring in high vacancy and capex it looks like they would cash flow. Even if only 2 units were rented I could break even. It just looks too good to be true. I can't think of why I would sell if it was really working out that well. If the numbers are really working out that well I would have to be very disgruntled or have something great to do with the cash before I would ever sell.

Some of them sit on the market for a while but they all do seem to sell. Obviously you have to do your due diligence, but maybe we are just missing out on good deals.

First off congrats! The 203k loan is painful, but when done right the result is amazing. You didn't mention any of the rental numbers yet but the equity there is awesome.

You should refinance into a conventional loan as soon as you can. The mortgage insurance on the fha loan is expensive. You can rate and term refinance as long as ltv is under 80% and pay no mortgage insurance and save hundreds per month. If it appraises high enough you can even pull your cash back out and roll in your closing costs.

There are up to 3 bid periods depending on the property. Lottery, exclusive, and extended. They will only accept investor bids once it is in the extended bid period. It should say right on the listing what bid period it is in.

Sounds like a great deal. Especially if it is in a high priced new neighborhood.

Banks are going to attempt trace the money back to the source and wouldn't lend without any income. It can be hard enough to source business assets earned legally in a mortgage transaction without significant documentation. I figured people in those situations would just pay cash. I guess if you had enough cash and bought enough houses you would have a lot of rental income to file taxes on.

Building credit is easy. You just pay everybody back on time.

Purposefully committing mortgage fraud carries a max $1,000,000 fine and 30 years in jail. That being said, situations change. I'm not aware of a particular required occupancy time-frame from Fannie Mae itself. I do know that they, Freddie and HUD will only allow you to buy their foreclosed homes as owner occupants with defined time frames. In my experience timing wouldn't be the issue here. Why this new property would be considered a primary residence would come into question. Reasons it would make sense include being larger, closer to work, in a better school district, etc. If you are moving into a smaller living space further away from your job it is unlikely the lender will allow you to finance as an owner occupant. If you got transferred 3 states away for your job it probably wouldn't matter if you just bought a house 3 weeks ago. I have seen many deals fall apart or be countered in underwriting because of occupancy.

@LyNetta Hill The house might be worth that much but the numbers aren't great as an investment property. Remember you only have to live there for a year or two if you are trying to house hack. It doesn't have to be the perfect place in the perfect neighborhood. It just has to be good enough and most importantly the numbers have to make sense.