All Forum Posts by: Account Closed

Due diligence is an individual responsibility and exercise. That particular article was never meant to be made public. The example cited in it is in Buncombe County, NC.

The article was the result of a discussion at the Bon Fire at the Field Guide and the editor made a mistake when she released it for publication.

Each investor much evaluate their potential risks as they see fit. I encourage you, and everyone, to discuss things like this with your attorney.

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Be careful about telling the tenant to stop making payments. A lease or rental agreement rarely contains anything preventing the landlord from enforcing it even if they are not making the mortgage payment. The tenant could find themselves on the losing end of a lawsuit and the landlord might assert they lost the house because of the tenant's failure to pay. Theoretically, they could seek compensation from the tenant for any losses suffered from the foreclosure. That could include "future losses" from not being able to get acceptable financing due to the foreclosure.

I know, patently unfair, but life is tough, get a helmet.

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Originally posted by Jeff Fairchild:

Correct, it is not my tenant. He said that the piece of paper says that the landlord has 30 days to make the payments current "or else" but I don't know exactly what it said. I'm guessing it meant 30 days till eviction.

If the landlord still has the option to bring the payments current, then the foreclosure is not complete. Depending upon the state it could take another 30 days to 2 years.

However, the tenant absolutely should move as quickly as possible. Unless they like the house and would like to work with the landlord and bank to buy it.

Just a thought.

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Originally posted by jbrooks:

Unless it's a local restriction (HOA or otherwise) where someone will actually notice it, does it really matter? What would FNMA do if you sold it 2 months later? ...

With that restriction, you do not have marketable title until it expires. No reputable closing agent would touch it and no title insurance company would insure it. So, no loan would be underwritten.

If you accept the restriction, you will have to live with the restriction.

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It depends on how much work you are willing to do.

You could go, say once a week, and just look at everything filed during the previous week. NODs are filed into the public record just like deeds and mortgages.

Alternatively, you could subscribe to the legal publication for that area and get them that way.

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Originally posted by Mr_Investor:

So you're the one that wrote the article cool.

Guilty. :cool:

Ok so even if that clause isn't sufficient protection I'm dying to know how you are able to protect yourself so I'm looking forward to the update article let us know when it's updated Taz this is very very important to us wholesalers.

The article has been updated.

http://fieldguide.reitactics.com/articles/if-you-wholesale-protect-yourself

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Originally posted by Jorge Caicedo:

How can that be possible? Once a contract is assigned to a buyer, it's their sole responsibility, not the wholesaler..

The wholesaler remains on the hook to the seller because the original contract was between the wholesaler AND the seller. I know the wholesale guru types don't tell their students but, none the less, the purchase contracts, yep, all of them, survive closing.

BTW, the article has been updated with some possible actions you can take to protect yourself. No, it is not an exhaustive list. The article was originally intended to draw attention to some pitfalls not provide solutions in all circumstances.

Any way, any feedback on any article is welcome.

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I agree there are times and situations where leverage, even high leverage, is a wise investing strategy.

These are not those times.

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Originally posted by Russianbound:

A couple of random questions.

When a new banker pulls your credit, does it actually show the amount in the Checking and Savings accounts? I have a few (old accounts a couple hundred bucks) accounts with zero activity, are they listed as well? I can't remember...

Bank accounts do not show up on a consumer credit report. They do show up through Chex that almost all banks and credit unions use.

The "why" can only be answered by the one who was responsible for getting it pulled those ten times.

Now, according to FICO, inquiries from a lender you have an open account and relationship with DOES NOT lower your score.

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Originally posted by Patrick E:

I was wondering if anybody that buy and holds a house if they ever use the positive cash flow to pay off a house faster?? Is this a good startegy?

Yes! we did just that starting in 2004 leading up to the current financial situation. Then we contacted the lenders to get the amortization reworked to lower the payments.

Now, we can easily adjust and adapt to any rental conditions without suffering from being over leveraged.

For now, we are making the expected payments in anticipation of having to adjust to a more competitive rental market over the next couple of years.

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All Forum Posts by: Account Closed

Account Closed has started 4 posts and replied 682 times.

Post: Protecting ourselves from recourse

Post: When will tenant get kicked out in foreclosure

Post: When will tenant get kicked out in foreclosure

Post: Deed restriction with Fannie Mae foreclosure.

Post: New York Lis Pendens NO LONGER PUBLIC???

Post: Protecting ourselves from recourse

Post: Protecting ourselves from recourse

Post: Paying off mortgage?

Post: Banker pulled credit 10 times, Viewing C&S amouts on report.

Post: Paying off mortgage?