All Forum Posts by: James Harkness

This is precisely the mentality that has so many homeowner's in trouble today. The biggest assumption in that theory is that homes will always appreciate in value... The real estate market over the last two years proves otherwise.

Although this is a good idea, do not over leverage yourself.

I'm not a CPA, but I am an asset manager. To answer your original question, I always require money from the seller in a short sale. Not to say that we are going to go after the entire deficiency balance, but ALWAYS require a promisory note. Usually in a small amount of about 5k to 10k. Most people don't have a problem with this as it is only 30-50 dollars a month, and we are excusing them of a lot of debt owed to us.

For your other question regarding taxes. They will be taxed (again, not a CPA but I am confident in this information) on the definiciency amount. So if they owe 200k and we do a shortsale for 150k, they will be taxed on the 50k.

What kind of property is it?

I absolutely agree... If you have a job, be grateful. For the last two and a half years, I have struggled working in the mortgage industry, moving from one closing company, to another. I went through a stint of unemployment, and it was the worst feeling to me. I was able to get a job doing asset management at one of the mortgage companies I used to work for doing originations, and I feel extremely lucky to have stable employment for the first time in almost three years.

People get put on the sex offender register for totally non violent, consentual sex acts if found to be in public places, etc.

I know someone who got put on the list for having sex with their girlfriend in the bathroom of a nightclub.

Sometimes you can only learn by doing and making mistakes. I know I am one of those types, and I learned this lesson the hard way. Don't do it!!!

The whole dynamic of your relationship will change. I agree that if you aren't ready to get married, then certainly don't buy a house together.

Not to be negative, but this seems like a ton of work. If there is fire damage, you never know how much work you will need to do. It can be a lot like rot. You never know how deep it goes until you start ripping it out. Something that looks small on the outside can turn into a major headache and major dollars to repair.

The structural integrity of the building could have been compromised by the fire. It sounds like the damage is more extensive than you think if some of the frame is blackened, and there is damage to the first floor ceiling. It may look like minimal damage, but the repairs could very well be far reaching.

It would be in your best interest to get in touch with a good contractor who can give you a realistic estimate of the repairs. Even a contractor will not know the exact amount until they open it up a bit and get to work on it.

I may be interpreting things differently than Jon... on number 1 anyway. It does sound like the bank hasn't actually foreclosed on the property as of yet, and your purchase is contingent on the bank acquiring the property at the foreclosure.

It is all up to you in the wording of your contract. Make an offer contingent on gaining financing, and instead of listing yourself as the buyer, list yourself "and/or assigns". Then if you cannot find an end buyer in the time specified in your contract, you have no financial obligation. When you have an end buyer in place, you can assign the contract to them for a fee. That is a wholesale deal. If you are looking to purchase a home for yourself to live in, there aren't a bunch of no money down options. You would need to find someone who would be willing to do a subject to transaction, or allow you to assume the mortgage without downpayment.

This varies depending on how you structure your contract, but if that is what your contract says, then at the time you enter the contract, you will need to supply a 1% downpayment.