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All Forum Posts by: Sean Dougherty

Sean Dougherty has started 53 posts and replied 97 times.

Post: Negotiating medicare Liens

Sean DoughertyPosted
  • hilo, hi
  • Posts 99
  • Votes 6

Owner has passed away.  Son is legal owner of home.  Lender is foreclosing.  1 junior lien of Medicaid from owners hospice care.

Home Value =$400k

Mortgage = $250k

Medicaid Lien= $130k  

Does anyone have experience negotiating with Medicaid?

Quote from @Eliott Elias:

You would need to put it under contract with financing. If the end buyer is taking out hard money, you can keep the transaction cash. Keep in mind, you are violating your fiduciary duty if you wholesale to a client. 

Thanks Elliot.  I'm not an agent btw.
If I purchase with financing contingency and bring can to table to close, would that be doable?  Then original contract will have financing contingency included. 
I guess question this:  If Purchace contact is finance continent does it have to be purchased with s loan or could i close with cash? 

I have a deal I can lock up at $200k with a cash offer. CMV is $225k. Is there any way to lock the deal up with a cash offer. I have a ready and pre-approved buyer @ $225k but would require financing to purchase. Any way to assign the original contract to end buyer?

Or is a double close the easiest solution?

Post: Short sale a reverse mortgage.

Sean DoughertyPosted
  • hilo, hi
  • Posts 99
  • Votes 6
Quote from @Minna Reid:

Lot of misinfo here. All reverse mortgages are backed by HUD, and yes you can do a short sale. Its a pretty standard process with these. What services are you trying to pay the son for?


Thanks for the info. I would be paying him for doing the work of the home owner in seeking. His mother is in care home. He has POA.

Post: Short sale a reverse mortgage.

Sean DoughertyPosted
  • hilo, hi
  • Posts 99
  • Votes 6
Quote from @Bill B.:

If the original owner has died or MAYBE moved in to hospice so they no longer have a right to it. If you could prove it’s only worth $400k they might sell it for that. But it’s easier and legally safer for them to just auction it off. Which is where you’d want to buy it if only you knows it’s worth $400k.  All this is after probate most likely. 

Yes owner is in hospice. Son has POA and is considering selling to me. In that case is it legal for me to provide funds to him for his services? If so would it need to be in the contract or on the side?

Post: Short sale a reverse mortgage.

Sean DoughertyPosted
  • hilo, hi
  • Posts 99
  • Votes 6

Is it doable? Lien $450k, homes current value=$400k

Quote from @Karl McGarvey:

Lender is going to be a problem with that and you ABSOLUTELY have to disclose it, also you cannot just write those solutions into contracts without getting lawyers involved. You are the one in the top position here - you have multiple offers. In TX we have an addendum to the contract that outlines the seller HAS to pay the difference of appraisal value and sales price if it appraises within a certain value. Ask you agent if you have the same option.


 Thanks Karl,

That's what I was concerned about, the lender. I suppose it depends on lenders guide lines. Would you happen to have a link to that addendum. I'd love to take a look at it. 

Hey all,

 I am in process of selling a flip. Market is going crazy here in Hawaii, so I am getting many offers way above asking price. Unfortunately I do not think the home will appraise at those prices. All offers involve FHA loans with 5% down.

Here is my idea:

Strongest offer is $520k. I believe home will appraise for around $500k. I am thinking to counter offer with a stipulation. Something along the lines of:

"Purchase price will be adjusted according to the appraisal amount. But whatever the difference is between that amount and the aforementioned $520k, that will be paid to seller over time on a monthly basis. A separate contract will be drawn up for this transaction with terms to be determined."

Only draw backs I can think of:

1.Lender may have a problem with a 2nd loan being involved. But really this would be a private transaction with a separate contract between buyer and seller. No need to disclose to lender.

2.Realtors not being willing or educated enough to implement this strategy.


Any feed back is appreciated. Thanks!!!

Hey all,

So I am in process of selling a flip. Market is going crazy here in Hawaii, so I am getting many offers way above asking price. Unfortunately I do not think the home will appraise at those prices. All offers involve FHA loans with 5% down.

Here is my idea:

Strongest offer is $520k. I believe home will appraise for $500k. I am thinking to counter offer with a stipulation. Something along the lines of: 

"Purchase price will be adjusted according to the appraisal amount.  But whatever the difference is between that amount and the aforementioned $520k, that will be paid to seller over time on a monthly basis. A separate contract will be drawn up for this transaction with terms to be determined."

Only draw backs I can think of

1.Lender may have a problem with a 2nd loan being involved. But really this would be a private transaction with a separate contract between buyer and seller. No need to disclose to lender.

2.Realtors not being willing or educated enough to implement this strategy.


Any feed back is appreciated. Thanks!!!

Post: Question on Wholesaling MLS properties.

Sean DoughertyPosted
  • hilo, hi
  • Posts 99
  • Votes 6

Thanks for the answers. I'll briefly fill in the holes of the story here so it may be more clear. The property in question I have been on it for over a year. It was a probate property and I have been dealing directly with the special administrator since that time. I've been inside it months ago and I ordered a contractor repair bid for the work needed. I could not get a deal done at that time and property has been listed. Due to covid this particular property is not being shown. Due to the disrepair as well as permitting issues as well as the issue of no one being able to see inside, there are no offers are coming in. It has been two months now. Because of my past history with the property I am aware of work that is required. Also I am aware what the minimum acceptable price is. I am not interested at that price but I am confident other investors may be.