All Forum Posts by: Frank Fiore Jr

For performing assets we provide a promissory note and a AOC (Assignment of collateral) w/ quarterly interest only payments. JV for non performers are currently a 50/50 split.

I am interest; I will be heading to Florida on the 8th so I will not be able to make your meet up; I would be interest in discussing this opportunity in more detail... 

Tom, FYI your application link is being blocked by anti virus (Kaspersky) as a phishing site; not sure if you're hosting that page or outsourcing..... Just an FYI.... 

@Keith Pentz, thanks.... looks like the info I was receiving was for an Investment.... 

FYI to others it might be worth while to gather same info for Veterans & Commercial loans.... 

FYI2... my credit score was 816 middle, I remained current on payments and I ended up with a 150 point hit to my credit... down to a 666, ironic # I would say :) 

Inquiring minds want to know..... OK, so all you knowledgeable individuals; what are the differences between a short sale and foreclosure as it pertains to credit hit etc.... please tell me..... 

I flat out don't buy the credit hit is any better for 1 over the other.... 

What's the wait time for another loan on a foreclosure? For short sale I believe its 2, 3, 4 years for Veterans , FHA, Commercial, credit it is a minimum 150 points for short sale...

So what is the up side to a short sale exactly?  

Late to the post but I honestly can't believe so many of you would go out of your way to prove the report incorrect.... unless its a very difficult rental market I would have moved on 2.3 seconds after I reviewed the report. A small amount of cross reference and "taking in the big picture" is part of the job but, no way no how am I spending 1 second researching the information if I have any other people interested in my rental... 

In fact based on the phone interview, application data and reference checks you should have a firm grasp on who this person is, the credit report is a factor in my decision and is utilized to validate a lot of the information already provided; if it doesn't match or is incorrect; See ya!  

And the statement "That is not me" is a (Warning flag, Red Card, Strike 3, 15 yard penalty, 15 minute major, Technical Foul, pick a sport reference you like.... Double fault.... 2 stroke penalty...  etc...) that I do not take lightly in fact it holds a lot of weight... They have until I find another suitable renter to prove it incorrect....., most of the time you'll never see them again.. 

I should state; past rental; I recently sold my 2 family.... 

This is going to end in an eviction; get the process started yesterday... waiting for this situation to change is only dragging out the inevitable; if they are paying rent late you have just cause for an eviction....  

@Vincent Grant, thank you for your feedback, it does help! 

Currently this is my only property; so after this short sale I'm circling the wagon and starting over! 

I have been learning so much over the last 2 / 3 years; I realize what my mistakes where and feel so much more confident. I am working on a business plan and although I see buy and hold as part of my long term strategy it is not what I want to jump into right away. 

Appreciate the input and I will look into the lending requirements. 

I am moving forward with the short sale... I have been over the #'s to many times already; and if I hold this property it all but kills my chances of getting another loan for a buy and hold for a long while. And although its difficult for me to let go; I am getting better at it, and I am learning to embrace the need for physical & mental well being as a higher priority. 

Physical and Mental well being has been my primary focus for 2015 and its going well. 

I will find a way to overcome the limitations to financing; there will always be great deals out there, and depending on how you view the market and our economic health; there will be another major buying opportunity showing up before you know it.... Of course that's just my opinion.... 

This isn't philosophical by any means but positioning yourself to buy at the bottom is building equity....  

The big risk for me in this short sale is the tax implications; with the MDRA not being extended yet in 2015 I may owe a nice chunk of change.... I'm hoping they decide to pass it but I'm not counting on it. 

@Ann Bellamy @Ron S.

Ann, I believe the people I'm working with and Sean's friends are one in the same; they have been great through all this but I'm down to the wire and this decision is beyond them at this point. 

Basically I'm deciding between 

1. Keeping the house (#'s I outlined above or in previous post in more details)

300k mortgage, 210k value, 600$ out of pocket a month after rent collection even with 3% rent increase over the next 2 years and a 10% increase in value I'm still in a big hole; and I project 30 - 50k in repairs over the next 5 - 10 years. 

2. Going ahead with the short sale

Paying 10K at closing, owing 21k in taxes (based on this years income + the deficiency (the deficiency amount bumps me to a new tax bracket to top it all off) 

Hoping the MDRA get passed again this year (in which case I'll will be forgiven on the tax burden)  

Hoping I can recover my credit score in a relatively short time frame; which is important to me but not the end all be all; there are other ways to finance deals as you both know. 

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Appreciate the feedback... I should have provided a bit more info.... 

I am in the thick of it. 

My tax liability if I accept the offer currently in play is 21K, 17k federal and 4k State

I am bring 10K to the table for this deal

They are including a wavier on the deficiency but that does not help me in the Tax area

The MDRA was extended in 12/2014 for that year only; so unless they extend it in 2015 I will have to pay the additional 21K in taxes.  

I ran the #'s on being insolvent and it doesn't work

I am current on my payments haven't missed or have a late payment. 

@Wayne Brooks .... Staying within the payment of 90% of taxes for the year, this 80K hit is going to push me to a new tax bracket and if I don't make payments I will  be well outside the 90% of estimated taxes owed. http://www.irs.gov/taxtopics/tc306.html "Topic 306 - Penalty for Underpayment of Estimated Tax" 

@Ron S.

 what do you expect the impact to my credit score to be? currently 816. 

What is the average turn around time; for a active attempt to recover my score. 1 year, 2 years, 3 years. When do you think I could turn that hit around and get back to my current score? 

What time line do you think it would be before I could purchase another property