All Forum Posts by: Michael Murphy

I am in the process of setting up a self directed IRA using existing IRA rollover funds.

Immediate - same day - funding of purchases is critical to me, so I truly appreciate all of the great reviews in this thread! Thank you!

I was close to going with Equity, but they obviously are not a good choice for me. It is very frustrating to be dependent on other, moderately competent, low motivation people to get a deal done.

It is clear that customer service, back end operations, and well trained staff are critical.

The "PayPal model" - of an all powerful, closed, low cost "garage shop" company, that won't acknowledge it's customer's existence or let you talk with a representative, is certainly broken here! ;>)

Cheers! Michael

I was just reading today about CoreLogic's covenant monitoring services.

Basically they will track any loan applications on the property for one year and notify both lenders.

The new buyer probably won't be able to get a loan on teh property. And odds are (about 80%) that Fannie owns your loan. They could pull the note as having been obtained through fraud (lying about being an owner occupant.)

Not worth the risk!

"Enforce Contractual Holding-Period Clauses

Increasingly, lenders are including holding-period clauses in purchasing contracts to protect against flipping. While such clauses discourage honest investors from buying properties with the intention of flipping, they do not stop fraud perpetrators and are difficult to enforce. Short Sale Monitoring Solution continues monitoring properties sold through short sale, sending immediate alerts when a short sale property is being resold"

http://www.corelogic.com/Products/Short-Sale-Monitoring-Solution.aspx

"REOWatchâ„¢ monitors post-sale activity to help you continually evaluate and optimize pricing strategies and limit flipping. As with Short Sale Monitoring, REOWatch also helps you to enforce contractual holding clauses, analyze REO performance, maximize pricing, reduce losses and blacklist fraud perpetrators."

http://www.corelogic.com/flip/?WT.mc_id=12312010-MREO-EB_mreo_wb_reo_1_101231

Why lend your money at 5% when you can lend at 10%?

If there is any reason to call a loan, they will take it. The resale value of that note wou;ld also be way down.

I think my lender just did this to me. I was locked at 4% on apurchase loan. Guess what, when rates went up recently, they didn't manage to fund my loan on time. I had to close with all cash - it was an auction property with a 30 day deadline and no financing contingency.

They are a direct lender - lending their oiwn money. I have heard complaints from other customers of them doing the same thing.

Three letter name before the word "Loan." Starts with an "A." :cool:

SOB's. Never again!

Cheers, Michael

Edit: Wow, 4 cross posts while I was typing that! Sorry ...

Of course flipping per se is not illegal. But there are folks who violate contractual terms in order to resell a property.

Core Logic estimates fraud in short sales at about 1.9% of sales. So fraud is present in a fairly small percentage of cases.

They have an interesting report that you can download that analyzes a number of loans – about 250,000 I believe - with specific examples of types of fraud found.

Fannie Mae and others, for example, now have covenants in their deeds that bar the resale of a property within 90 days for more than 120% of the acquisition price. That is a contractual agreement that the buyer enters into in order to get something of value - the property - from the seller. Core Logic now offers a service to monitor future sales of those properties for compliance.

This is a big business. Lots of good folks out there, and some bad actors, as anywhere else in life.

[i]" The new service allows lenders to receive alerts on “risky†pending and closed short sales to minimize unnecessary losses related to fraud and property under pricing, which CoreLogic estimates at $41,500 per transaction. Short Sale Monitoring Solution provides real-time access to lenders’ concurrent transactions on short-sale properties through the CoreLogic Mortgage Fraud Consortium, the largest repository of application and transaction data, representing 65 percent of annual loan applications"

"Short-sale fraud is costing lenders $310 million a year and those losses may increase if lenders cannot proactively identify risks in real time,†stated Tim Grace, senior vice president of Fraud Analytics, CoreLogic.. [/i]

http://www.corelogic.com/About-Us/News/CoreLogic-Launches-IncomeAdvisor-For-Real-Time-Fraud-Assesment-and-Income-Estimation.aspx

Best! M

It sounds like you still don't know exactly what the history is, where you stand, and what all of your rights are. You need to know exactly what is going on to make an informed decision.

I am in Saline, MI. If you want to send me the address, I will do research to see what I can find out. I understand you have to do a "contact request", etc. here to "pm" me? Still new here.

If there was a foreclosure in Michigan, that means there was a trustee sale/sheriffs sale. That is a public, legal proceeding that creates a record.

The person who holds the note commonly bids at the foreclosure sale. Historically the bid has been what they are owed at the time, including late fees, attorney fees, etc.

If there has actually been a foreclosure sale, there are at least 3 (or more) ways that you could "profit" from your current legal position:

1) Take money from then to sign away your redemption rights - 6 months in Michigan - so that they can have a clean sale. Their e-mails are totally meaningless on that point. What you need to see is a written contract with all of the details of what they are offering, and what you need to do in return.

2) Get someone like me or another investor to "redeem" the property, by paying what you owe and then taking ownership of the property. This won't work too well if you are "upside down" - owe more than it is worth.

3) Try to get a "workout" on the note, so that it is "re-performing" if the financials make sense. They may or may not want this course, it takes more time. You would look for them to write down the principal and waive fees so that the property was no longer upside down.

4) You could also challenge the legitimacy of the foreclosure process if there were procedural errors - like robo signers - that raise questions about the legality of the whole process.

Send me the address and details of your financial position, property history, etc. I am usually not interested in properties in Wayne county. But I spend at least 30-40 hours a week researching and analyzing properties in Michigan.

I usually work until the kid gets home at 3:30 EST (now.) Then again until midnight or 2 am. chronic insomnia!

You can check my last post for some personal history.

Cheers - good luck!

Best,
Michael