All Forum Posts by: Matthew Nelson

@Brett Goldsmith does providing services mean you act strictly as a consultant assisting a seller? Where I'm confused is whether me structuring a deal to acquire a property from a seller facing foreclosure is me servicing myself and setting up a deal for myself or me providing help to seller simply because they receive benefits from participating in the deal.

@Ron S. thanks for the input. Are you saying that the mental conclusion that a seller makes is essentially what determines whether or not I could get in trouble structuring a deal with them without proper licensing?

I want to clear up what "helping" a seller actually means. Obviously, nobody would take a deal they do not receive some kind of benefit from. Is the rule simply if they are facing foreclosure, any deal you do you have to be a licensed foreclosure consultant even though you are setting up the deal with the intention of making money for yourself?

Please only California investors or those with specific knowledge of California laws answer:

I have been researching what requirements and laws that exist in California surrounding purchasing homes from owners in "pre-foreclosure." Are there specific licensing requirements for purchasing homes from these individuals? I came across this: https://leginfo.legislature.ca.gov/faces/codes_dis...

I have no law experience, but it sounds to me like there is some kind of Foreclosure Consultant License that you must obtain before engaging directly with any sellers in foreclosure in California. I am not at all planning to facilitates any transactions without an attorney, but when it comes to initially reaching out to these owners via the appropriate "advertising" and communicating with them during negotiations and initial meetings I want to make sure I am not violating any laws.

What licenses would I need to obtain in order to find "pre-foreclosure" deals in California that include both full-cash payments and owner financing? Assuming an attorney would handle the transaction.

@Ron S.  Thanks for the input. I appreciate hearing from somebody who is clearly involved in the lending space. Do you mind sharing some more detailed reasoning behind why banks would be inclined to immediately call loans? Is it part of some due diligence process upon the sale of the loan to another institution? I know you mentioned its a risk for the investors, but if the payments are brought current and are being made on time, at least in the short term, why would a bank be so determined to call a loan since it seems to me that the loan was "saved"? Agreements with investors? Note: I understand entirely why this would not be acceptable in the long-run.

@Jay Hinrichs I will make sure to consult with an attorney and read up on all laws related to "foreclosure rescue" in California. I am currently only in the stage of researching different seller financing techniques available to me, and I appreciate your helpful input.

A note: I'm researching seller financing techniques for fix-and-flips only and not long-term rentals.

I am currently researching the process of doing subject-to deals for homes that are owned by distressed sellers, particularly those that have missed two or more payments or have entered pre-foreclosure proceedings with their lenders.

I have been researching for a while and have found people have had mixed experiences with lenders calling loans thanks to the due-on-sale clause. Some say the banks are happy as long as they are getting paid, some say the banks will call the loan if they don't get paid within a year, some say its entirely based on the reputation of the lender, and some say the banks always call it.

If you have experience related to subject-to deals, preferably in California, can you touch on these questions:

1.) Which lenders are known for immediately calling loans upon the transfer of the title?

2.) What is your experience with having loans called?

3.) What are some ways to bypass the due-on-sale clause?

4.) If a loan is called, what options does an investor have?

Any advice is helpful. Thank you.

Some assumptions: The loan would be brought current upon sale