All Forum Posts by: Minna Reid

I've never even heard of a due on sale clause being called in 17 years in the business. 

However, I have seen just a single deal in that same time, where a subject to could have benefited the seller. In that sale, the sellers were elderly, sick, uncollectible, and a hefty upfront payment in exchange for a sub 2 would have actually benefited them more than an outright sale (long story). A default on the mortgage later would have been an acceptable risk in their position and worth the lump sum upfront. 

That's one deal in thousands I have witnessed. I have never had a single other opportunity to recommend a sub 2, and probably never will again . They are almost never worth the risk to the seller.

Tom is correct -  that lien is out there owned by someone. You need to find that someone and negotiate payment for the lien release. If the numbers are tight, you will need to short the first as well to get some payment to the second.

It is not illegal to have an owner occupy post close in a pre-foreclosure sale, although it is certainly a terrible idea.

If the property can be sold, pursue a short sale for its current value whatever that may be after considering the cost to remedy these issues. Even land alone has some value. As far as short sales go it generally doesn't matter what caused a financial hardship as long as one exists and can be demonstrated. 

This will provide an opportunity to get the lender some payment now and more importantly, for the owner to negotiate how the remaining debt gets settled.

Quote from @Jay Hinrichs:

Quote from @Minna Reid:

Quote from @Jay Hinrichs:

Quote from @Minna Reid:

Well I've been expecting the downturn for several years now, but seems they postponed it with super low rates and cheap Covid era money. I'm seeing the market turn here in Jacksonville FL now. Can be hard to tell whether its a true downturn or a seasonal slowdown though. 

It does feel like more than a summer slowdown. 

Also my calls for foreclosure help have finally been picking up. Nothing crazy but definitely an uptick. 

Covid mortgage workout programs are still in effect and not sunsetting until April 2025, unless they extend...again. Those are keeping some folks afloat still.

Not sure how much longer they can kick that can down the road, but I continue to be surprised lol. Also election years can swing things.

For what its worth these discussions feel a lot like the ones I saw here in 2006-2007 ish. We all know how that went down ( at least those of us old enough to have experienced it).

Difference though is there simply is not the million sub prime loans out there like there was then. But you will always have foreclosures no matter what the market is doing..

But there are - they are just now government backed. And in fact even last crash 75%+ of the notes I shorted were FHA/VA/Fannie/Freddie, not fly by night private guys. Those private guys have all but disappeared since.

Also -the covid workout programs offered by all - especially FHA - have absolutely horrific terms. Predatory at best. Not sure how many they have written over the last 4 years but they have been pushed like crazy. No docs required/mods to higher interest rates/huge silent seconds. When those folks need to sell and discover their equity is long gone, it will make an impact on the market. I'm already working a few of these. But again - no way to know the size of the fallout until it happens. 

However -  since I work mainly the default market, I likely have at least a slightly biased view, which I acknowledge. 

I will defer I have not chased court house steps personally in years .. I fund a few folks that buy them though ( I am the Money) and a few states activity is back up.  

 Which states are those?

Quote from @Jay Hinrichs:

Quote from @Minna Reid:

Well I've been expecting the downturn for several years now, but seems they postponed it with super low rates and cheap Covid era money. I'm seeing the market turn here in Jacksonville FL now. Can be hard to tell whether its a true downturn or a seasonal slowdown though. 

It does feel like more than a summer slowdown. 

Also my calls for foreclosure help have finally been picking up. Nothing crazy but definitely an uptick. 

Covid mortgage workout programs are still in effect and not sunsetting until April 2025, unless they extend...again. Those are keeping some folks afloat still.

Not sure how much longer they can kick that can down the road, but I continue to be surprised lol. Also election years can swing things.

For what its worth these discussions feel a lot like the ones I saw here in 2006-2007 ish. We all know how that went down ( at least those of us old enough to have experienced it).

Difference though is there simply is not the million sub prime loans out there like there was then. But you will always have foreclosures no matter what the market is doing..

But there are - they are just now government backed. And in fact even last crash 75%+ of the notes I shorted were FHA/VA/Fannie/Freddie, not fly by night private guys. Those private guys have all but disappeared since.

Also -the covid workout programs offered by all - especially FHA - have absolutely horrific terms. Predatory at best. Not sure how many they have written over the last 4 years but they have been pushed like crazy. No docs required/mods to higher interest rates/huge silent seconds. When those folks need to sell and discover their equity is long gone, it will make an impact on the market. I'm already working a few of these. But again - no way to know the size of the fallout until it happens. 

However -  since I work mainly the default market, I likely have at least a slightly biased view, which I acknowledge. 

If the partner has assets to pursue - start a lawsuit now. 

If he is broke, its just a waste of your time, and I would say cut your losses now and consider it a lesson learned.

Well I've been expecting the downturn for several years now, but seems they postponed it with super low rates and cheap Covid era money. I'm seeing the market turn here in Jacksonville FL now. Can be hard to tell whether its a true downturn or a seasonal slowdown though. 

It does feel like more than a summer slowdown. 

Also my calls for foreclosure help have finally been picking up. Nothing crazy but definitely an uptick. 

Covid mortgage workout programs are still in effect and not sunsetting until April 2025, unless they extend...again. Those are keeping some folks afloat still.

Not sure how much longer they can kick that can down the road, but I continue to be surprised lol. Also election years can swing things.

For what its worth these discussions feel a lot like the ones I saw here in 2006-2007 ish. We all know how that went down ( at least those of us old enough to have experienced it).

Quote from @John Kelp:

Quote from @Minna Reid:

What are the payment amounts and interest rates?

Not sure . I’d pay the loans off with cash and maybe refinance in the future ? I’m not sure what to do , I’m trying to minimize loss and see if there’s any smart options from other investors 

Perhaps it would be good to know this info as the loans may be worth keeping especially if they were written over the low interest years. 

What are the payment amounts and interest rates?