All Forum Posts by: Minna Reid

It's not just the agents, it's the investors too. As a Realtor I get multiple calls/texts weekly with the same investor scripts and have been for at least a year now. They're not even creative, as I feel there are maybe 3 versions of the same script they are all using. The inventory is just not there for anyone. 

Lot of agents and investors will be flushed out...which IMO is a good thing. 

Because that mortgage payment will eat up almost 70% of all your available income. Anyone would be a fool to sign up for this. 

Also the $1500 isn't really that helpful because  it is "projected" and includes no expenses. Even with the rent, this house will take at least 1/2 of all your funds monthly. 

This sounds like the beginning of so many of the hundreds of foreclosure/short sale stories I've heard. 

This is a disaster waiting to happen. Is a lender even willing to fund this? I hope not, but even if they are, don't do it! 

These silent seconds are called HUD partial claims. If you do a forbearance or loan workout with FHA, you likely have one. You would have signed a promissory note as well as having a lien placed. The problem is HUD has been very sloppy especially over the last few years to record these, so often unless the homeowner remembers them , they bypass closing. Unfortunately, even without a lien, HUD can still collect as you signed a promissory note. Partial claims were not terribly common prior to COVID. Over the last 4 years HUD has written at least a million of these for loan workouts. They are pushing them actually. The only way to modify a loan to a lower payment during a time of rising rates is to move a bunch of principal to the back of the loan. I frequently speak with folks who are finding out that:

A: They have a partial claim

B: The partial claim amount is astronomically higher than expected

C: HUD failed to record their lien (not as common as A and B) and then was forced to pursue the homeowner after a sale

Since FHA has been basically pushing everyone they can into a loan mod per "Covid mortgage rescue" plans, these will be an ongoing issue for many years to come. Also, since they have written so many more in recent years than ever before (historically speaking) the problem will only escalate as more and more homeowners come to realize all their equity disappeared into these when they go to sell.

FHA is still pushing Covid workouts actually, and currently have extended them through April 2025. They will probably extend again. The partial claim issues have only just begun .

Im a Real Estate Broker so I use MLS Data.

Appraisals are just another opinion of value. I don't think you need an appraiser for this. Have you expanded the geographical range, and gone further back in time? My gut says $20-30kish for a missing garage for a starter home in this price point. 

Did the approval come with a arms length agreement to sign? Read it. There are no short sale "laws", but the addendum will specify who can purchase the home, and to sign and violate would be fraud. The only time I have seen short sales WITHOUT an arms length agreement would be reverse mortgages, or very random portfolio loans. 

Assuming its properly marketed, price is almost always the issue. Over the last several years tons of new rental inventory was built, and investors have bought up a ton of SFH to rent. There is simply too much rental inventory to sustain the rental prices we saw a over the last few years. Rents are coming down. I would say refresh your marketing and reduce the price to just under your competition. Peak rental season is here right now.

Ill second Jacksonville however, be aware down south is built out differently from the northeast and we do not have a lot of small MF buildings like there is up north. Most investor portfolios are groups of SFH, or large apartment complexes.

If the foreclosure has not been completed the seller is the homeowner. VA cannot list the home until they complete the foreclosure and take possession. They will then list on the MLS.