All Forum Posts by: Michael Williams

@Kevin Arnold I will most definitely look into that approach. From my research on this so far it would be best to have an attorney advise me on this strategy.  

Thanks for that other info as well. 

@mike Dymski I am well aware that banks WERE not interested in foreclosing on you but I think that is changing. They are creating a situation that allows them to get the house paid for and then sell the MERS asset to servicing companies. How do I know? ...They did my residence. The new game is to get you to apply for a modification. They tell you not to pay until the modification is complete. If you send a payment they will send it back. The goal is to get you to the 90 day default date by delaying the modification process. After 90 days the mortgage insurance is going to pay the house off, then they sell the note to servicing companies. 

@Carl Pickens That's why I asked to see the paperwork before I write up the contract with the offer

 
I knew banks made lots of money off of loans but seeing it on paper just boggles my mind. When I looked at my Amortization for my house I didn't know what I was looking at during that time. Know that I understand it more and I see why banks hate crypto and smart contracts so much; it will cut out trillions of dollars for them. 

 
Would you mind telling me your strategy for this one?  I am referring to your deal. 

 He was in the process of getting his paperwork to me then he got fired today. So I am trying to gage when I should call him about this deal. I think he will be calling me first. 

He said his was at 6% and include taxes and insurance. 

That's the route I want to go but this is a flip to an investor that has more clout than me. I've never done a lease option before but I do understand the concept. I also know that getting a large upfront fee from a stable lease to own tenant will be easy but I'm worried about the FHA loan. They have already told him that he can't have to mortgages or he will be classified as an investor; so I don't know the strategy for getting around that issue, so that's why I think it's better to flip this one.

 
Thanks Joe, that make sense. I just found out this guy lost his job today, so his motivation probably just jumped by 10. 

I have an extremely motivated client that saw my "CASH 4 HOUSES" sign on my car. He is ready to sell because he has two houses, which translates to 2 mortgages. He is willing to just have the loan paid off or payments taken over. He just wants the stress gone. I told him to get me the exact payoff for the house so we can know the exact number we are working with. Comps put the house at $93-98k. It only needs about $5k cosmetic work. HVAC is 5 years old. 

He says he bought the house 17 years ago for $100k and is paying $810 per month. I asked him how much he owes and he says around $78k. I said," $78k- Is this an Interest Only Loan"? He said "NO". Did you refi or get a second mortgage on the house? He said "NO". 

I told him to get an Amortization so we can see what's going on with this mortgage. He says it's an FHA loan and they are giving him the run around about the amortization. He says that the mortgage has changed hands to 3 banks over the years. Once I get the paperwork I can see what is going on. This guy is open to all creative options because he is stressed about this house and told me that he just wants it GONE.

Has anyone in this forum encountered an issue like this and what was the issue? I also would like to know how to write the contract up so that it reflects that he is open to all options. Do I need to just pick one strategy for the contract and work from there? If he owes the $79k for some reason, what is a good strategy for low equity in a "B"/"C" Neighborhood in Memphis?  

Jay, I always learn something from your post.