All Forum Posts by: Tom Gimer

I doubt your seller is expecting to be in 2nd lien position with his/her $750k. If you (or a partner) don't have the $200k cash to put in, this sounds like the wrong type of deal for you.  

This just went sideways.

So you're showing the 2002 DoT for $186k recorded in 2002 as released in 2003? And no new mortgage on record?  That was 14 years ago... so why does mom think she stopped paying her mortgage years later?

Time to gather more facts.

Let me get this straight. This Eastside Funding bidding company "helps" potential buyers with numbers such as ARV and earns more when they bid higher because they ultimately finance the auction purchase?

LOL

Auctions are never a good fit for new investors and yet you have an established entity praying on them.

@Michael Lampo Michael, if the BK was discharged, the fact that it was filed in the past is a non-issue. If he is still the owner of record you can negotiate with him directly.

Joe -- I can connect you with a bunch of solid Baltimore agents to interview. Shoot me a message or email if interested.

Your seller presumably expects his $340k mortgage(s) to be paid off at settlement -- and he rightfully should. Your new lender will also expect to be in first lien position. That would put your seller financing in second position. Is your new lender going to agree to $220k in subordinate financing? Doubt it! And since they are sensible lenders, they're not getting involved in this deal with wrap-around on the existing first.

So I agree with @Tim Swierczek -- get as much money from your bank as you can to acquire the property with the max seller 2nd they will allow.  

Agreed! For now. But there has to be a Plan B already in place for when the beast wakes up. 

You can't just switch brokers if the first introduced this property to you. Check your paperwork.

As to the other question, I'd rather my real estate broker be an attorney. And that portion of the rule being quoted regarding the attorney acquiring an interest adverse to the client should be omitted... it doesn't apply in this situation. 

False hope. If she took out an ARM in 2002, the maturity date would be, almost certainly, 2032. SOL would seem to be a non-issue here.

That said, I agree that the best course of action right now would be to get a local attorney on board... foreclosure defense/bankruptcy type.

Consider consulting with a real estate attorney to determine whether this "bidding company" broke any laws and/or has any liability. Sounds like they charged you a commission so there are potential brokerage laws implicated regardless of what they call themselves or what their agreements state or disclaim. I've never heard of such a thing.