All Forum Posts by: Chris Martin

Quote from @Jaron Walling:

Is the auto industry big enough to create ripples in RE markets? If so, why? The UAW just escalated the "stand up" strike to 38 new locations. This includes everyone already striking. This affects thousand of UAW members and numerous part suppliers. I don't see the negotiations ending anytime soon. 

Transitioning from ICE to EV requires sacrifice. I think disruption in the auto industry combined with other economic red flags could create big impacts on our economy.

?

I think you have his quote wrong, from the UAW president interview several days ago (emphasis mine)

"UAW president Shawn Fain said “we’re not going to wreck the economy. The truth is we are going to wreck the billionaire economy.”

A week prior, Fain said in an interview:

“In the last four years, the price of cars went up 30%. [Automakers’] CEO pay went up 40%. No one said a word. No one had any complaints about that but God forbid the workers ask for their fair share,” he said. “It’s not [that] we’ll wreck the economy. We’ll wreck their economy, the economy that only works for the billionaire class and not the working class.”

The auto industry is certainly big enough to cause ripples in some economies. Nationally, I don't see a big impact on real estate short term, even with a longer strike. Remember, the foreclosure process takes a long time (years) so if people don't pay their mortgage next month, maybe by 2025 we'll see consequences. Bigger housing impacts, long term, IMO are things like our overall national demographics as well as obsolescence of some of our industries, like ICE auto. 

The sums (damages) you describe are well beyond small claims. Missing property constitutes a crime. In cases like this, a police report and insurance claim (via tenant's rental insurance policy first, mine second) would be (have been) my first choice. 

It is certainly possible to ask a lot/parcel owner to subdivide and sell a parcel to you. There are plenty of cases where parcel owners, for instance farmers, split out and sell road frontage land for single family development. You can see this up and down Rt 242 south of Benson, for instance.

While you can ask, don't get your expectations too high. Also, you will want to know the soil types, supported/available utilities, where to establish easements (if no road frontage), and per acre pricing at a minimum. AcreValue.com (fee service) can provide details on valuation(s), usage history, etc. Wake County iMaps can provide soil types, as seen in the example below. If you turn on well and septic icons, you can mostly figure out what/where to avoid, like flood plains.

I think you are overthinking this. 

Tell the tenant not to leave things on the porch. If anything, I'd put a little storage bin/seat (hinged seat that has storage) at the ends of the porch for storing "things" and for seating. 

Quote from @Antonio Bodley:

What is the best way you can protect yourself in a subject to deal if your tenant buyer starts missing payments leaving you on the hook to come out of pocket to keep up with the mortgage payments? What if a person in this situation only has business credit cards as a source of capital to cover the debt?

The best way to protect yourself is to be well capitalized. If a person is not well capitalized ("...only has business credit cards as a source of capital...") then 1) access any/all available resources (borrow on CCs) and 2) cure the default, as in get the tenant-buyer current. 

I would not suggest doing subject to acquisitions unless a person is very well capitalized and ready, willing, and able to pay off the debt if the loan is called by the loan servicer. 

One note, this is a 2009 case based on action taken by defendants in 2002-2006. These charges came about before the great recession and the foreclosure rescue laws. 

What you suggest is effectuating the transfer, as in transacting or brokering, of a security instrument. All NC laws (NC General Statutes) related to securities are spelled out in Chapter 78A. North Carolina Securities Act.

Related to your post, a transaction of a security interest in real property would be an exempt transaction, per § 78A-17. Exempt transactions, which says: 

Except as otherwise provided in this Chapter, the following transactions are exempted from G.S. 78A-24 and G.S. 78A-49(d):
...
(5) Any transaction in a bond or other evidence of indebtedness secured by a lien or security interest in real or personal property, or by an agreement for the sale of real estate or chattels, if the entire security interest or agreement, together with all the bonds or other evidences of indebtedness secured thereby, is offered and sold as a unit.

Since you would be brokering these deals, and (apparently) not servicing the security instrument, Article 10, Mortgage Debt Collection and Servicing, of Chapter 45, Mortgages and Deeds of Trust, would not apply to you. Your buyer, though, should know these chapters of NC law as well as federal servicing laws.

Note that by NCGS §45-90(2) (Definitions) a NC "servicer" is defined in RESPA, the Real Estate Settlement Procedures Act, 12 U.S.C. § 2605(i). Also note that RESPA applies to federally related mortgage loans, not notes from private investors.

So, in the context of your post, I don't see any "illegal activity." 

This post is not to be construed as legal advice. This post is for entertainment only.

The file format, according to the OFFICIAL RECORDS PUBLIC ACCESS FOLDER DESCRIPTION, is "^" delimited ASCII text: 

The Clerk of the Courts provides a daily file containing all official records information processed by the court the previous day. This file can be downloaded by the interested parties from the County’s site.
Official Records extracts are in the form of ASCII text files in which records are delimited by a caret (^) and have a variable length.

There are multiple advantages of using the purchased data since the LIS records contain indexing back to the Original Recording Book (field 19) and the Original Recording Page (field 20) which will be the Book/Page of the Deed of Trust (D-T) or Mortgage (MOR type file in this county). The record also contains the Subdivision Name (field 21) which might be useful for some users. Other fields, if they are used property, would be helpful as well: Case Number (field 30) could be the Special Proceedings (SP) File Number; and Consideration 1 and Consideration 2 might be the monies owed in the SP file. 

If you scrape or use a standard search method, you LIS records will not have the D-T reference Book/Page. To get complete LIS records will require multiple passes using returned fields from the LIS results in a new "Legal Description" search; specifically, you'll need the Plat Book and Page, Block Number, and Party Name. 

Hope that helps. 

@Rich Hupper does the address show up as a super fund site? Just curious, like you are, what algorithm or information a bank underwriter would use to trigger that response. Several years ago, I've 'bought' a Phase 2 Environmental Site Assessment (ESA) for an old textile property I had under contract. Maybe the prior owner's business triggered the red flag? 

I agree with Doug, with one comment about "but you do run the risk of the lender calling the loan on you." The loan acceleration letter will be sent to the borrower, who is not you (person taking loan Subject To). An acceleration can put the original borrower in quite a bind if you (as person owning the property) can't remedy the default. And, yes, violating the terms of the mortgage/D-T is a default. After the Great Recession I saw a few cases in the Wake County courthouse that went to auction because the Subject To default wasn't cured. So be careful.