All Forum Posts by: Account Closed

There is no reason for you to get involved other than a concerned friend. All the nuts and bolts about their financials are personnel information. I have great friends that I would never disclose my financials with; simply because they have no reason to know. If they need / want a loan modification its all done through their providers/loan modifiers. You, an agent or not, don't need to get involved in that process. Check out the website @Joel Owens 

recommended. Its helpful, I directed others there and it has everything they need to know there.

I know I am responding late, but BP never notified me of additional postings here.

I was able to make it through to my parents that buying a new house is not an ideal situation for anyone. They agreed and were ready to sell and rent. I spoke to my dad and he worked a deal out with the state to regain his pay from his previous place of employment so he will be making 5500-6000 /month, just enough to cover the 3400 mortgage but will definitely make it difficult for them to live with a majority of the income going to mortgage, bills, taxes, etc.  

I then went to the banks  explaining the situation and they explained they would be willing to due a loan modification and they gave me a rough estimate that the monthly payment would be reduced to 1800. Nothing set in stone as they want to speak to my father directly since he is the loan holder (he is currently out of town for job training/orientation work). The term length, interest rate, etc are not set either until they speak with him (I was surprised they even discussed what they did with me.) On top of that we usually rent out 2 rooms for $500 each bringing the total down to about 800.

Right now we are hoping the loan providers are willing to do a loan modification, so they are able to hold on to the house for a few more years until their credit builds up. Then they will be able to downsize on their own without my involvement.

Does the loan modification seem realistic? 3400 down to 1800?

Are there any details I/we should look out for when modifying a loan?

I should have mentioned that I am trying to get them to settle with renting. I am showing them some great places. I think the "I want to be a home owner" mentality is set in their minds. They came to me and asked me to help and I thought it would be a great way to say thank you (I won't delve into my family dynamics). Additionally, the RE agents fluffed me into this idea of an investment, but as many posted previously, it really isn't.

Even if I do not go the purchasing route and they do end up renting, I figured this would be a step forward in learning more about purchasing/investing for my future. Still a young guy taking opportunities to learn. Even made some new colleges from this thread.

UPDATE:

Apparently my mother's credit is fine, but her lack of employment deters lenders. I spoke with the loan officer and she said that my mother and I going in together as a cosigner with an FHA loan would be beneficial.

She explained that, as long as I can prove my parents are the living at the residence and they are paying the mortgage, it should not affect my barrowing abilities come 3-4 years from now as long as I can prove such.

Does this sound correct to you all?

I understand that I should not look at this as an investment and that this truly comes down to if I can rely on my parents on keeping up with the mortgage. But if I am to do this, I want to make sure that my future buying/investment plans will not be ruined by this deal.  I am going to speak to another loan officer for other opinions and accuracy of what I was given, but I wanted to check with BP community as well.

I have a good relationship with my parents. I can entrust them to take care of the house. I seethe concern that what will happen if my dad loses his job again, I will need a back up plan. Unfortunately, I don't live with them and If he did lose his job I would not be able to keep up with my rent and the mortgage. He is only a few years away from retirement; I guess I'll have to see how much they will make in retirement and make a judgment on how I feel about them making payments.  

@George C. 

I'll be sure to talk to the mortgage broker about that. I am not exactly looking to buy a house anytime soon, but definitely a concern I have if I happen to pursue that route sooner than expected. 

@Ellis San Jose 

Is you refering to a deed of trust over the permissary with the bank? And I'll be sure to keep in mind that the RE agent may be trying to fluff me into this.

Thanks everyone. I'm not sure if BP was the place to discuss this with everyone, but I really had no one else to go to. And the RE agents said to look at it as a long term investment and I wasn't sure if that's how I should go about looking at this.

Young guy looking for some guidance. Didn't know if this was an appropriate section or not. Taking any advice, input, and/or suggestions.

My parents currently own a 6 bedroom house hold in the city of Ventura, CA. Unfortunately, my father got laid off a few months ago and now they can't keep up with the mortgage. At the moment, they are relying on savings and a few renters to pay the $3400~ mortgage payments. They come to a realization that they don't need the big household and it is not worth holding anymore. At the current rate, they will have to foreclose/short sale/ etc. So naturally they are looking to sell the current residence and downsize into something smaller, possibly a manufactured home. Unfortunately, back in 08’, they already underwent a short sale causing their credit to sink. No lender will consider them for a loan on a new house.

I am the only one in my family who has good credit and a stable form of employment. My parents reached out to me to see if I was willing to help. The agent suggested that I could buy the new house under my name and rent it out to my parents. My father did get a new job a few weeks ago that would hopefully cover the mortgage payments if I get a good deal on a house. The RE agents said it would work if we find a home valued approximately around 250k. Essentially, I would buy the house, my parents would maintain, pay, and hold the house. They would also cover the down payment. The money made from selling their current residence is approximately 50k.

RE Agent is telling me to look at this in the long run as a future investment. One day I would be able to sell or rent out the property, but in the mean time I won’t have to worry about it.

I guess I wanted to see if this is a smart move.

Is the RE agent right on how I should look at this situation, a long term investment?

Would this ruin my credit or chance in any way for when I decide to purchase my own house?

Is an FHA loan possible? Or is that something I should save for myself?

I would love to see the reaction of your future buyers going through this thread when it is all said and done.

I missed last one. Hopefully I can make this one. I work a W2 job currently, but using my free time to study real estate, markets, business, etc. I Figured networking now won't hurt me even though I am not necessarily active in the investing gig yet.

BUMP

@Jordan L.

any updates?

Rich Dad Poor Dad books are not how to's, they're ways of thinking essentially.