All Forum Posts by: Maurice W. Evans

Mister Smith

Thanks for the great info AND example.

So to summarize am I to understand

I personally lease with option to buy from the owner at about the cost of their monthly note and then I go and sublease it out to rent at market value?

In such a case, outside rehab expenses (if needed) I need no down payment, cash or credit if they trust me to buy the house at the agreed price in two years or so?

Correct?

Are the tenants renters or are they trying to lease option/rent to own?

If they want to buy, but don't, how do I buy the property?

Realistically what's the cash flow on this and what's the risk?

Thanks for emphasizing how this works best for those who can show they are doing rei.  

Maybe newbies can partner with established investors?

Anyone willing to help me understand a method?

Seller finance/lease option with motivated or foreclosure?

Somehow the owner is paying you to buy/flip their house with no cash from your pocket????

Heard briefly, but didn't contact.

Been bugging me.

Is he full of it?

added an update

That is a consideration, I am having them check on how that might impact their medicare.  I think i would have to figure a way to buy the mortgage from a paperwork perspective.  If she sells that puts her into a possible issue with medicare.

They want to keep their house, I just feel they got raped a long time ago and are continuing to be so.  Looking for best approaches to get that lender out of the picture.  Hadn't considered the fraud possibilities until seeing some answers here. So I have a call into an attorney, but would like this to be as simple as possible.

Thanks again.   So checked records.  Neither dad or jr are currently licensed (not sure if it shows historical, if so, then never were).  However, the home was owned by the dad (mortgagee) so I guess technically the original balloon was an owner-financed mortgage and would fall in that private individuals exception you mentioned.  The other two from Jr. that were for smaller amounts and listed as commercial purposes have, of course, been long since paid off.

It's all very slick.  I feel like he covered his bases a long time ago, but so much time has passed, he is rushing for her to sign this new modification because there is some shady stuff in there.

 Thanks. Good stuff. Just wanted done advice from the community as this level of$&!#@ is beyond my current paygrade.

That commercial only jumped out at me...they are not the primary mortgage though, just those addons from the tax certificates.

I'm guessing he is licensed, does lots of real estate, however that's Jr, and he put the first mortgage in his father's name and the smaller two in his name.

how do I check?

My interest is actually that I just am being made aware of this debacle...it's my in-laws so without realizing it, I have a dog in this fight i didn't even know was happening.

Paid by check yes, not much proof of early years though as bank changed.

New modification does state no payments missed though.

What do you think he the fraud could possibly be? Predatory?

Negotiate what? Mortgagee wants the money!

Anyone got any ideas.  Trying to help a family.

Tampa Florida

March 20, 1998 a 50-year old and her husband (and mother?) get a private mortgage from a "friend" (daughters boyfriend) with friend's father and mother as mortgagees.  

Homeowners put $10,000 down and get financing on $60,000 for 10 years at 10%.    There is a $54,563.41 balloon payment on principle due April 1, 2008. 

That balloon was never made.  No late or missed payments by the owners since the mortgage. 

may 5th, 2011, under threat of foreclosure son issues himself as mortgagee a forced 10 month simultaneous addon of $3,102.60 to the mortgage as a result of him redeeming property tax certificate. This basically was treble the amount of taxes due to attorneys etc.  Full due by March 1, 2012. This loan is stated as homeowner affirms it is "for commercial purposes only".

August 24, 2011 same thing happens...new mortgage added on with son as mortgagee for $5253.35 however for 18 months @ 10% full due by Feb 1. 2013. Also again affirmed as "for commercial purposes only"

All payments, always made on time.

The homeowner has been advised on several occasions by the mortgagee to not sell the house or refinance without speaking to them first.

The homeowner (husband and wife) are now 70+ years old.  The mother who was also on mortgage has passed.

2 years ago, the wife moved to another state to be cared for by daughter. Husband still lives in residence.

Homeowner asked for balance statement showing payments and amount due as she felt she should be close to pay-off.  Requests.were.ignored.for.almost.two.years.

2 months ago, mortgage holder sends paperwork with amortization schedule and loan modifications to homeowner.  Agreement says that homeowner has requested a loan modification due to not making balloon payment 10 years ago.  (they didn't)

Balance due is about $37,000.  Modification creates new 30 year mortgage for that amount at 10%.  In addition, the lender redeemed a certificate (before the homeowner had a chance) in 2015 in which he is demanding immediate payment (I am guessing he is going to do what happened last time if it is not immediately paid to him).  

Homeowners also have not yet paid 2018 property tax which will go to auction as a certificate in may if they do not pay in time.

Guessing around 1800 sf, 4/2 single story block house -- lot is 50x129

County market value $140,701   

county assessed value: $66,214

comp neighborhood value: $190,000 - $210,000

Low Fixed income. 

No Cash

Checking for them, but likely low credit score. (no derogs just nothing positive reported either for decades :/)

4 living children, not with enough income/credit for co-sign

creative options?

Thanks in advance to all.