All Forum Posts by: Maurice George

I still would like to know more of details what happened with the judgement and how old it really was. The creditor says it was from 1979, but I will leave it alone.

We are wholesaling this baby, after 3 months of fixing title issues and getting all the problems out of the way.

Thanks again BP for your awesome feedback

Hector, in some states, once you obtain a judgement, you can renew it every few years (my state is five years). So, if they renew it every five years, their judgement is still valid.

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Quote from @Eric V Harding:

The time has come where we lost someone special and they have moved the estate in our names.

There was a reverse mortgage taken out in 2017. Our angel used a little bit, not too much, and kept a line of credit open.

By the RM nature, we need to sell within 12 months now. Its a solid condo in Orange County, CA which is a good rental pull, so we were wondering if its possible to hold on somehow? We dont know any RM hacks, so any wisdom is appreciated.

If HECM balance is small, you can refinance it and keep it.

If HECM balance exceeding the value of the property, you can short sale it.

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Orange County, California

Quote from @Dymond Johnson:

I know someone with a property that's currently worth over 1 million and the area is growing like crazy, they don't want the house anymore. BUT the house needs over 500k worth of work AND it's in a reverse mortgage. I don't know much about how to get the house with the reverse mortgage ties and my funds are not great to make the purchase. I'm not sure what to do. Any tips? Or someone willing to give serious advice so this deal doesn't go to waste?

Short sale is the only working route in reverse mortgage.

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Quote from @Steven Vega:

Thank you for the response!

Steven, if homeowner moves out of the property in reverse mortgage situation, it is considering as default and bank (per HUD guidelines) must initiate the foreclosure. If you do a super quick turnaround (for resell or quick refinancing), you can do that. Otherwise, sub to is not a good idea for reverse mortgage.

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Charleston, South Carolina

Quote from @Jay Hinrichs:

Originally posted by @Christopher Blanco:

@Devon Cornwall

I dont play the numbers game anymore. People always use dating as an example. Sure if I ask 10000 women out, I might get a yes, but what if that yes is someone I am not attracted too? Let's say my budget is $5000 to market to these women. So I spend $0.50 on each. How attractive is the $0.50 piece going to be to each woman?

Keeping with the dating example, what if instead I took that list of 10000 and pulled out what I am looking for, let's say brown hair, blue eyes, single, makes 45k a year or more, etc etc. I also know a little bit about the woman and what she likes. I now narrow my list down to 200 women. Still with the same budget. I can now spend $25 a target and get exactly what I want.

its what we do for lots.. we send our letter in Fed ex.. it always gets opened.. and I have a super secret one I simply wont share but it works and I know it works because some one did it to me. and I sold.

In FedEx? So, Jay, each one will cost at least $10.

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Quote from @Teddy Smith:

I door knocked when I first started real-estate. My experience was OK at best. I doorknocked ~1000 doors and got one listing out of it. I think the only reason he listed was because I lived two doors down from him....

Teddy, we are talking about door knock certain list, not everyone though.

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Quote from @Account Closed:

Hi to all readers, I am currently going through the process to obtain my real estate license in the state of Oklahoma and am trying to find a Brokerage in the Oklahoma City Metro area who offers 100% commission to the agent while the brokerage receives a flat fee per transaction and a monthly fee for being able to hang my license with them. If anyone knows of such brokerages, the help of where to find them is much appreciated.

Andrew, please google "New Western" and give them a call.

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Originally posted by @Brent Coombs:

@Maurice George, if I'm distorting what you said, then you must have meant that the Owner can in no way benefit from a short sale, right?

In which case, that's what I've said all along. You can't have it both ways!

eg. If the Owner's friend gets the 3% Commission, how can that help the Owners or their heirs? [Be very careful how you answer that question].

As for Buyers volunteering to pay any Liens not paid out by the Bank, I ask again: why would they volunteer? That's not credible. But my main point about that is: So what if the Buyer does volunteer? It's obvious from your posts that those Lienholders had no recourse anyway, so the Owner is not impacted in any way. Cheers...

Brent, I already said the benefits several times. Since you did not get it, let me say it again.

1. Buyer must pay liens attached on the property. No HECM short sale transaction can go through without paying off the liens attached on the property. Of course, the lien payoff must be disclosed to the bank in writing (eg, show on HUD-1) and bank must approve this payoff. The lien payoff amount is in addition to purchase price. For buyers, they must put lien payoff amount in their calculation. If they believe payoff lien plus short sale purchase price will not work, then there will be no deal. If a seller has 40K IRS lien on the property, do you believe IRS will not actively collect on them? Paying off liens attached on the property is nothing but a huge benefit to the seller. Brent, why you do not count buyer pay seller's IRS tax lien a benefit?

2. I do not know who told you lienholders have no recourse. If a seller still alive and let property go to foreclosure, liens will fall off from the property, but it will stay with the seller. If the owner passed away, lien holders can file a claim when a probate opened.

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Originally posted by @Brent Coombs:

@Maurice George, you wrote "HECM law allows buyer to pay liens attached on the property as long as the payment properly disclosed to the bank (eg, on HUD-1)", but I ask: Why would a Buyer volunteer to pay any liens (on top of the purchase price agreed)? [But, if payment of said liens is made as part of the agreed purchase price ie. forced by the Lienholder/s, then your point is moot, right?]

But I do agree that it is interesting when you say the Owner can force the the Buyer (in a roundabout way) to end up paying the Owners' representative 3% of the value of short sales. I would have thought that laws were worded so that even 3% Commission was completely "at arms length" ie. leaving no possibility of letting the Owner get ANY revenue from a short sale. Not so?

Per your last sentence, good luck with the IRS in your circumstance. Cheers...

Brent, in HECM short sale situation, bank will not pay any liens on the property from proceeds, but bank will allow buyer to pay those liens as long as it is properly disclosed to the bank (on HUD-1).

Also, please do not distort what I said. I said seller can choose his/her own agent in a short sale transaction as listing agent. He/she can choose his/her close friend as the listing agent (must be licensed obviously). Of course, this arrangement must be consulted with the bank before the short sale process started. If bank rejected this idea, then, seller may need to choose another realtor. If Bank approve this arrangement, it must be disclosed entirely in writing to buyer as well as the bank before bank issue the short sale approval.

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Originally posted by @Brent Coombs:

Originally posted by @Maurice George:

Originally posted by @Brent Coombs:

@Maurice George, whether you're right or not doesn't affect the original Owners. If the Lender is unhappy because their golden goose stopped laying eggs, too bad for them, right? But as with any short sale, it's the Owners (and particularly their heirs) who end up with no cash in their pockets from the sale.

[This adapted from a Wizard of Id cartoon: If the Owner while alive received more from their Lender than they have to give back after they die - then the Owner won!] Cheers...

Huh? In most reverse mortgage short sale cases, owner already took way more money from the house than the house worth. Why they still expect money from a short sale? Frankly, if a homeowner can find an agent who can help them short sale the property, assist them moving, and handling all stress, it is already a free bonus. Sometimes, because there are some credit card judgments or tax liens on the property, buyer has to pay those liens. Yes, it is not giving money to the seller, but seller are saving a lot of money as well. What else can you expect?

For reverse mortgage lenders/investors, they do not care at all. They will get money anyway because they are fully reimbursed by FHA for every penny they spend.

You wrote "In most reverse mortgage short sale cases, owner already took way more money from the house than the house worth", but I disagree. Mostly, the Owners just ACCUMULATE INTEREST PAYABLE over the years, which is only paid on completion of the Contract (often when the Owner dies). ie. The original Loan would have been for a fraction of the home valuation. ie. Compound Interest works in the Lenders' favor. If the Loan includes ongoing monthly payments to the Owner, then that original "fraction" would be even smaller.

You also wrote "Yes, it is not giving money to the seller". So, we agree, right? Cheers...

Brent, there are different kind of HECM programs. In many situations, HECM interest is only like 1.6x% or 1.8x% while some programs in some situations have 5.xx% interest. If you get a good interest, the balance is not accumulating that much. Also, the benefit of HECM is as long as you pay property tax, insurance and keep this as your primary residence, reverse mortgage company cannot foreclose your property until all borrowers and eligible non-borrower spouse (Common law marriage won't work. There is a case in my town about this rule) passed away.

Per HECM laws, if property owner do a short sale, buyer cannot give money to the seller. However, HECM law allows buyer to pay liens attached on the property as long as the payment properly disclosed to the bank (eg, on HUD-1). If a property owner have 40K IRS lien on a 700K property with 950K HECM mortgage balance, would you believe a property owner will glad to say Yes? (1) Someone will pay his/her 40K IRS lien. (2) A family member of his/her can list his/her property and get 3% real estate commission. 21K (3% of 700K) is not a lot of money in Del Mar, CA or Manhattan, but it is still a decent amount in my town (3) Property owner can walk away free (Non-recourse). I would glad someone will make IRS never bother me again.

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All Forum Posts by: Maurice George

Maurice George has started 4 posts and replied 113 times.

Post: How to Eliminate a Judgement on a house

Post: Reverse Mortgage - Best Options

Post: Need advice on reverse mortgage

Post: Subject to on reverse mortgage with intentions to hold as rental.

Post: Door Knocking. Sinful or Brilliant?

Post: Door KNOCKING experience

Post: Are There Any 100% Commission Real Estate Brokerages in OKC?

Post: Reverse Mortgage Short Sale Questions???

Post: Reverse Mortgage Short Sale Questions???

Post: Reverse Mortgage Short Sale Questions???