All Forum Posts by: Khanh Tran

And perhaps you didn't understand my comment about the auto-sub. If the new loan and the old 2nd meet certain criteria (basically the new loan being a rate and term refi of the 1st, the 2nd being fairly small, closing costs being low) then the 2nd could be automatically subordinated to the new 1st, regardless of the sequence they were recorded. Look into it.

Thank you. Learning something new everyday.

0 Votes

@Jay Hinrichs: Yes, it is a renew of the first loan, but i didn't know that a new Deed of Trust from one bank can renew the Deed of Trust from another bank, so it can move up in the priority.

@Roman M. @Account Closed: The documents mentioned about lien priority, but it is weird that a buyer borrow two loans from the same bank on the same date, and later another bank could willing to finance a big amount of money to the buyer to paid off the 1st loan.

0 Votes

Hi,

I am new to foreclosure investing, and i tried to analyze and study the title search. Here is the situation:

1) Buyer bought a property and have two mortgages (Deed of Trusts) on the property from the same lender

2) Buyer decided to refinance with the new bank (a new Deed of Trust), but the new deed of trust said this is a renew or extension of the first lien.

3) The previous bank release the lien on the 1st mortgage.

In this situation, does it make the 2nd Deed of Trust become the first lien since it record before then 3rd Deed of Trust?

0 Votes

Hi,

Below is the situation:

1) Person A bought the property and use the property to open Home Equity loan.

2) Person A died and transfer the property to their family member.

3) Their family member then sold the property to the current owner by using Special Warrant Deed.

The Home Equity loan of Person A is default, and the bank is decided to foreclose on the property. What will happened to the current owner and the highest bidder of the foreclosed? Does the current owner lose the property and the highest bidder get the property?

Thanks

0 Votes

Originally posted by @Ron S.:

With the only information you provided to go on, short answer is No. the HOA "owned" and benefited from that ownership during the time they owned it and was taxed accordingly for that ownership. if they didn't "benefit" from the ownership, I'd question the logic of the HOA but that would not absolve them of the fact that they get to eat those costs. That would be like the HOA decided to put a new kitchen in it and decided they'd bill the new owner after the lender foreclosed. Ain't gonna happen. They can send all the bills in the world they want to but that doesn't mean they have any right to collect the money.

I understand about the upgrade but i am not sure about the property tax, since the winner of the trustee sale usually need to pay the property tax.

0 Votes

HOA foreclosed the property in 2015 and the house is vacant and HOA have paid the property tax since 2015. The bank decided to foreclosed the property in 2018. Does the winner of trustee sale need to pay back the property tax to HOA?

0 Votes

Originally posted by @John Leavelle:

@Khanh Tran

Yes, we are building a new Duplex.

No, we are not putting in a trailer or mobile home.

It is not hard to add water/sewage and electricity to the new units. The planning and permitting is all handled by the General Contractor.

Yes, it is expensive. Plumbing and Electrical is always expensive. But that is included in the construction costs.

Why would you want to built a new unit next to an old house? Why don't just buy a land and build a new duplex? Does it save you a lot of money? How much does it cost per sqft to build a new house in your area? Are you plan to use a builder or hire a General Contractor?

0 Votes

Originally posted by @John Leavelle:

@Randy Frederick

Good to hear you are using a Realtor to help. It sounds like you are proceeding with the correct precautions and awareness. Is the Cash Flow after the Refinance or before? This might be a good base hit for you to get your feet wet.

If the lot is larger enough and zoning codes allow the future expansion then it makes this a potential better deal. I purchased a Duplex that was in ruff condition. It needed a lot of Rehab work. It wasn’t a good deal by itself. However, the lot was extremely large and the zoning was for multi family properties. It was large enough I was able to get it permitted for 2 additional structures. A second Duplex and a 4plex. The Duplex should be finished by April. We may start the 4plex next fall (TBD). So your idea is a good one if zoning approved.

Did you built a new unit? Or you put a trailer or mobile home in the property? Is it hard to have water, electricity and septic installed to the new unit? Are they expensive?

0 Votes

Originally posted by @Chris Seveney:

Greg W.

I ran an analysis of a performing note at 12% vs. most rentals and the returns on the note were better than a rental.

Note that income from notes is no longer taxed at ordinary income based on new tax law.

So what is the income tax rate for income from notes?

0 Votes

All Forum Posts by: Khanh Tran

Khanh Tran has started 15 posts and replied 42 times.

Post: Liens are not wiped out at the Trustee Sale

Post: Foreclosure Lien order priority

Post: Foreclosure Lien order priority

Post: Foreclosure Lien order priority

Post: Special Warranty Deed

Post: HOA and Trustee foreclosure

Post: HOA and Trustee foreclosure

Post: Potential first deal isn't a homerun, but should get me on base!

Post: Potential first deal isn't a homerun, but should get me on base!

Post: Note investing vs Buy and hold and how they affect net worth