All Forum Posts by: Karl Johnson

Yeah that will be good! Make sure they are investor friendly though. Talk to other local investors in your area as well who do the same thing or who are in this niche! Like I said... there are ways around it. :) Sorry for the late response too!

Hello!

Many states have rules regarding this very subject and for good reason. Whether your intentions are ethical or not, many states have this rule to protect the homeowner. One of the biggest problems that they saw was that people would get the deed of the property, lease option it back to the seller, & when the seller failed to make payments then they would be evicted & stripped of all equity they had to the property so investors could get in & get out of the deal. There are other things to it but that was a big issue

I know it is illegal to do many things involving saving or I should say "saving" homes & homeowners who have defaulted on their loans here in VA. While it is possible to do this strategy, anyone who is in this niche (I will be soon) you have to plan step by step in great detail and make every single intention clear, written down, & signed by both you & the seller while staying within the lines of the law. I'm not sure what the exact rules are for MI but definitely do your research!!! I found that big road block myself in VA & that put me to a halt as well but there are ways around it. Just make your intentions clear, ethical, & written down.

@Charlie Tijerina 

@Kevin Foster

Thanks so much for the input guys! Sorry for the late response Charlie but thanks for the help. Now it's just a matter of time and executing my plan properly. You folks will definitely see me again & any questions I have relating to this topic!

@Account Closed

No. I am asking because I plan on working with pre-foreclosures here very shortly by flipping lease options. I would use the option fee that I received by assigning it to a TB & have that pay for the fees in the pre-foreclosure process & therefore the home would be out of the process once the funds pay off the delinquent payments.

It would benefit the home owner in trouble by:

-Making the mortgage current

-Potentially saving their home

-Little if no cost to them

-Save their credit (somewhat)

-The rent would cover mortgage payment

Benefit TB by:

-No qualifying for home

-Can accrue equity with each current payment 

-Can build credit

Everything would be done at an attorney's office for signing papers & etc. So that is why I need to know about the escrow. When the TB has the funds to bring to the table, could escrow be opened & therefore transfer it to the mortgage lender so that I know it has been given to them? This is also assuming my numbers are correct.

But can the homeowner use escrow if they wanted to?

@Account Closed

Is it possible to open up an escrow account & deposit the needed funds to pay off a pre-foreclosure debt?

EX: -Homeowner defaults on loan

  -They somehow get cash needed to make mortgage current

  -They go to title company or attorney & open up escrow

  -Escrow takes the sum of money and gives it to mortgage lender

  -Payments are now current

Now I'm sure there are other smaller details I might be leaving out but is that possible to do or would the homeowner need to pay the mortgage lender directly instead of using escrow?

Thanks for the input Chris! I'm not in the military yet but I am in MCJROTC which is fantastic. Anyways, I will check out the "Learn" tab above to see what I can find. Thanks again. :D

Hey guys, what's up?! Ok so next year I will turn 18 & be off on my own in the real world. My biggest dream is to build long term wealth & start as soon as possible. Rich Dad (Robert Kiyosaki) said that your home isn't an investment but I intend to make it an investment because I intend to live in a multifamily property.

-What are the pros & cons to this decision?

-Is it safe to apply for an FHA Loan at my age & use renter income to help with the mortgage?

-What should I look for before jumping into a decision like this?

Thanks for the input Jeff! And Semper Fi to you too