All Forum Posts by: Jason Green

Bryan,

Can you expound on the Fannie/Freddie "Bullets" paragraph you wrote. You totally lost me. I have never had more than 2 mortgages at a time since my primary residence is paid for. Thank.s

I will have this property paid for long before the 5 years are up. Is a balloon still the best idea. Also, on a foreclosure, I have not found a ton of banks just lining up to conventional finance.

I am trying to purchase a rental property that is in foreclosure. It is a 1br/1ba condo fully renovated. Bank has dropped the price from 97k to 55k. I am offering 50k cash. My question is this. My banker says a regular mortgage is a waste of time and money for such a cheap property. He suggested a balloon loan. The terms he suggested are 5 years at 6% 300/mo payment with a balloon payment of $46,000 after 5 years. I dont know anything about balloon but why not do it longer than 5 years. Any advantage or disadvantage? Thanks.

I know nothing about short sales but that is the only opportunity out there right now. The banks dont have their hearts right on REO's in my area and I build houses so why would I want a foreclosure at a courthouse sale at market price when I can build as many as I want for less than market price. Now, to my question, there are alot of houses foreclosing, when I see the legal ads, I drive to the property and it is already abandoned. Is it possible to negotiate a short sale if there are no owners (owners in terms of physical location). Thanks for the help.

I am a home builder operating as an S-corp. I am currently living in a house that I built that didnt sell. I am paying the construction loan payment with company money for tax purposes ( im sure if they knew I was living here that would be frowned upon). Anyway, I want to buy the house since a fixed loan would make the payment about 400 cheaper than what the construction loan payment is. Here is my issue, all the mortgage people around my area keep telling me that I cannot buy something from myself. To me this makes no sense, why couldnt I write a contract from me to my company for more that what is owed (a profit for the company on paper) and that be that. I would pay taxes on the companies profit and the house would be off the companies books. Does anyone know of anyway I can make this work. I did the same thing on another house but that was back when money was free and all we did was deeded the house to ourselves and cashout refi for the amount of the construction loan which my mortgage broker said he cannot do anymore. Any and all help is appreciated.

I appreciate all the input I really do. Eric, I talked to a very good investor in my area and he basically said the only thing in alabama that "sticks" is backed taxes. The house we bought had a 400 power bill but we told them we had just acquired it and they switched it to our name and waved the old bill, which was awefully nice of them. This has been a learning experience and this isnt for the faint at heart. Im sure I will get more advice on the next one. Thanks again for all the input so far.

How do you know without a doubt that you are bidding on the senior lien.

Cell, I was told by the trustee selling that there is no "closing" so to speak. He said I would get a deed in about 2 weeks. I am trying to figure out when I get a title, like a title policy that you get at a conventional closing. Sorry to ask so many questions but the info is appreciated.

I know I bought the senior lean because the guy handling the sale had a title search that the Law firm selling did and It matched the mortgage referenced on the deed. We also went inside the courthouse and looked up the two mortgages. The cheap internet search almost got me in trouble.

Eric, the thing I understand from research is that as long as you buy senior leins when starting out then you are ok, is that thinking right? I have a real estate background so I am not completely lost but I am used to going to a law office, sliding a check, getting keys, a title binder, and a deed. This just freaked me out a little. I can understand why there are deals out there because people dont have the stomach for this type of transaction especially if you do alot of real estate sale the conventional way.

Cell counter, I apppreciate the input. The guy got a ditech.com loan for 120% apparently. The mortgage I bought is dated the day of closing referenced on the warranty deed. The mortgage is for 84k. The second mortgage is for 65k. The house is only worth 120k max. So ditech would end up with 149k in it if they redeemed it right? There is no way they would do that. Also, I know the default owner and he has ZERO interest in getting the house back.

Eric, Im not really unsure as to what happened but what you read in a book and online is one thing I wanted to hear it from someone who has done it. Like I said, Im not ignorant to real estate by any means but it freaks you out a little when you give a big check and get a writted receipt and no keys. keep the feedback coming, we all started somewhere.

Bought my first foreclosure and I got alot of experience in the process. It was also my first auction. Turned out I did one of those $100 internet title searches and it showed a mortgage for 65k. Well, I get there and the mortgage we were buying was with someone totally different for 84k. Turns out the internet search I used showed the second mortgage as the only loan. Anyway, I want someone who has knowledge in this area to reassure me that im ok. We bought the senior lean for one. The second mortgage can be redeemed but they would have to buy ours as well, right? Also, Alabama has a 1 year right of redemption(tenants are out, divorced and not interested in the house at all) do I have to wait a year before I sell it or rent it? The power never got turned off, am I responsible for the utility bills. Any advice on the steps to take to insure my 84k investment is safe would be great. This is my first one and I already have someone wanting to rent it for $700/mo. Any and all advice is welcome. I read that if it was occupied that the person can live in it during the right of redemption free, then my lawyer said no, they have to be out in ten days from sale or they forfeit any redemption rights. Like I said, alot of info out there, I just need the right info.