All Forum Posts by: Jonathan Rundlett

Anyone purchase any of Ron LeGrand's boot camps or courses lately? He's obviously been around a while and I am not sure if his stuff is still current. Been looking

Any comments would be appreciated.

Reverse Mortgages are like any other mortgage on a property. If the owner passes away, the asset becomes property of the estate. The person who is responsible for the estate will need to obtain new financing or sell the house to pay off the reverse mortgage. Most reverse mortgages are FHA mortgages so they are assumable but the person would be subject to the same requirements - namely being over the age of 62 and living in the residence for more than 6 months out of the year.

Thanks Jonathan - I was able to read the new law as it relates to foreclosure consulting/purchasing. How has this new law affected your business?

Yes - it is making it very difficult to deal with foreclosure properties in MD. The new law made the process for a lender to foreclose on a property more difficult and longer to complete. It also dictates how foreclosure consultants in MD can operate eliminating a number of past practices but I have not been able to review the details as of yet. Bruce Norton, one of the premiere foreclosure consultants in MD has sent an e-mail out recommending all foreclosure constultants to cease business immediately until the law can be reviewed.

It's strange that the law went into effect immediately but yet no details of the law have emerged as of yet. I have seen the new law in regards to the lenders but am looking to get information on the part regarding the foreclosure consultants. If anyone has seen a copy of this (HB361/SB217), please forward a copy to me.

Thanks!

I understand Governor O'Malley signed a new law that regulates foreclosure consulting in the state of Marlyand last week but have not been able to find a copy of this law as of yet. Does anyone have access to a copy of this new law? I would like to ensure that I am complying with state law while dealing with pre-foreclosures.

Thanks for any input!

I think that the point that would have made the biggest impact was the point that the bankruptcy attorney would have the authority to change the terms of the mortgage. I don't see how that could have possibly passed and seems to have been removed from the bill as both sides are trying to fasttrack this bill to try and limit foreclosures this year. I think it is a positive step but we are still going to have a record number of people filing for foreclosure this year. I don't think it will affect the investors at all as there will still be plenty of opportunity. That's my 2 cents anyway....

Welcome Dan - what are of REI are you most interested in?

Thanks for the welcome loki. As we all know, the mortgage business has been a tough one for the past year so I was looking to do something to supplement the decline in income that I received last year. I talk with so many people that are in dire situations and have no equity in their property to qualify for a mortgage. I noticed a lot of people doing short sales to help these individuals and decided to learn more about this from an investor standpoint.

I got all of my plans together and had a real estate attorney review my plan and documents for compliance and found out about the foreclosure laws passed in MD in 2005. They mention that if you obain title through a foreclosure reconveyance and sell the property to someone else within 18 months, you are required to pay the original homeowner 82% of your net proceeds. This obviously changed my gameplan which is why I was asking if anyone does short sales in MD as I would like to see what they do in order to get around this law - whether they hold on to the properties for 18 months or do lease options back to the homeowner. I'd love to get some feedback.

What you say is interesting paidwell. This is the reason I am looking for some feedback. I initially wanted to focus on short sales by purchasing the property and selling to another person as many people are doing elsewhere. When I read this law, I noticed that it is preventing people from doing that as you would have to wait 18 months or else give the original homeowner 82% of the net proceeds. However, the law specifically mentions that giving the homeowner the ability to lease back the property with an option to buy is acceptable. It almost seems as if this is what the law prefers investors to do. What makes you say that the law does NOT want you to do this?

Yes it is for the entire state - it was passed in 2005. Not many people are aware of this law but all it takes is one person to come back and decide to sue you and have a good attorney and you can be on the hook for 82% of the net profit that you made.

This is why I'm looking to see what game plan others in MD that do short sales have been using. Thanks for your input!