All Forum Posts by: Account Closed

 They are a little challenging to find these days. I'm looking at one off W Thunderbird Rd at I-17 that looks like good cash flow. Since it's near ASU it'd likely have a continual demand.

 It appears you may be in the military or a Vet - if so, thanks for your service.

Your Comment: "Explain how "Subject To" doesn't fall into this definition."

"Mortgage fraud refers to an intentional misstatement, misrepresentation, or omission of information relied upon by an underwriter or lender to fund, purchase, or insure a loan secured by real property."

@James, I believe you have purchased properties before, correct me if I am wrong. You know what underwriting is and where it appears in the purchasing cycle. You also know, presumably that closing happens, eventually ;-) and the borrower makes payments on the loan. It is a tedious step by step process worked out over many decades. It is predictable.

When an underwriter "funds" a loan it is long before a "Subject To" becomes a possibility.There isn't any way I am aware of that one can use "Subject To" to take over an unfunded loan that hasn't closed.

It is the responsibility of the borrower on the note to ensure that the loan is paid every month. It can be paid by someone else's money. That is what is happening when a "Subject To" happens. The buyer has the moral obligation to always pay on time. He can be sued by the mortgagee if he fails to make payments on time. The borrower on the note can contact the attorney general (and some have done so). If the buyer has stopped making payments, they are in deep "doo doo" to use a perfectly acceptable legal term. Then it "can" become mortgage fraud, but only if payments were missed, not because someone took over the payments.

I agree. It's not illegal to begin with. Lenders know about subject to, they aren't stupid. They see that someone new is writing the check. They do what is in their best interest and that is to leave performing notes alone.

She is making an issue of something that doesn't exist. Nowhere have you stated anything that clouds the title. A purchase and sale agreement has an expiration date and doesn't cloud title anyway, unless the buyer pursues it. Sounds like that has long passed.

Unless the company filed a lawsuit, which you haven't mentioned, they no longer have any interest in the property.
If they recorded a lis pendens without filing a law suit the penalty against would let her retire in comfort.
If they fraudulently filed a lien of some sort but you haven't indicated anything of that nature, again their penalty would be a nice windfall for her.

If . . . she thinks that because they had a purchase and sale agreement from some long ago time, she is simply showing that she doesn't understand how things work.

Make your offer, open title and escrow, and I'm sure the whole transaction will go smoothly.
A title report will reveal anything of concern and a report is usually $50 to $100.

 Lots of people who aren't US citizens get US loans to buy in the US. You need to talk to a mortgage broker in your area for information.

Since you asked, I bought using Subject To from a Turkey provider in Phoenix AZ who knows what he is doing. I stayed away from CA and WA because of costs and restrictions and bought in AZ. I looked for cash flow so I could live and breathe and enjoy life instead of doing fix & flips which is simply another job. I replaced my income, rather quickly. I took action instead of dreaming. I let the Turnkey provider train me because frankly, he's better at it than I was. I didn't need financing after the first couple of Turnkeys. His technique provided the source to do more deals. The biggest thing was changing my mindset to understand what was real and possible rather than just doing what everyone else *thought* was the way to do things. He isn't a banker so he doesn't limit himself to the banking system. In order to understand you have to go back to a time when we decided our own destiny. If that isn't your thing, use banks, use credit, use the very, very, slow way to do things. His way is still work, don't get me wrong, but it's work that puts the money into your pocket. 

 Put it on Red 32  and hope for the best. Just kidding.

I'd put it in single family housing in Phoenix, but hey, what do I know? I'm just another (very successful) investor. But I don't have a clue what your goals are.

Agreed. You are renting to the same people I do. You haven't stated that you've rented to massage therapists. We have no disagreement.

 I picked the Phoenix area. But, it's really tight on the multi-families with people over paying, so I stick to single family and I've been quite happy with my decision.