FHA Assumption?
Looking at a property scheduled for foreclosure auction next week. FHA loan. No luck contacting owner about assuming mortgage. Any chance the lender would consider this before aution? Or if I were the highest bidder at auction, is assumption a possibility or only outright purchase?
A quit claim deed offers less protection than a warranty deed. There are no title warranties with a quit claim deed.
You would not be assuming the loan. You would be purchasing the property "subject to" the existing financing. There is a difference. Find an attorney that knows and understands this difference.
You would be able to get title insurance later on the quit claim deed if you were to go that route.
If there is a lot of equity in the properties you could always try to get a hard money loan.
Hope this helps.
Thanks for the info. Do you have any other suggestions as to how to structure this deal in a short time frame?
The Sky is Falling! The Sky is Falling!
"Senate To Kill Real Estate Investing!"
Nonsense! Secrets for continued success:
Tell the truth (full disclosures), abide by the laws,
and, to coin a phrase, "do unto others....."
Well said lacashman.
[ Edited by bargain76 on Date 03/13/2006 ]
lacashman,
Great post.
I am not able to connect to the link you posted. Maybe their server was down.
For a level headed responce check out http://www.narhri.org Look in the breaking news section.
If your not charging for Loss Mitigation or doing lease backs your not covered.
I have always said to never let them stay.
Here is the petition url Hobz was talking about....
http://www.petitiononline.com/fs2349/
A little backgound behind the bill.
http://www.ag.state.il.us/pressroom/2006_01/20060130.html
yeah, so did the bill pass? if it did, is there any legal way around the 82% thing? is real property do-it-yourself dead in ILL now? thanks.
I make a killing at 82% of FMV.
the FMV is determined by a BPO or an appraisal which I influence and it has been rare that I ever closed a short sale for less than 82% of the BPO (which many times is 60% of FMV
While not a fan of big government I have found that creative people always get around the legislation and find or creat new ways to invest profitably.
Banks are in the business of making (not losing) money. They have their own stop loss measures and ratios regardless of what the government proposes. We investors are still making money working with them.
I currently hold "0" properties and flip or rehab all of the 8-10 SS I am working at any given time for a nice profit.
I owuld suggest writing the congressman in your state or at the national level as these bills come into their/your venue. I would not state that the "sky is falling"
[addsig]
I noticed that the 1st & 2nd mortgage are held by the same lender. Would that bank bid the total amount owed of $582k on both the 1st & 2nd mortgage at the first auction or would they only bid up to amount owed on the 1st mortgage ($460k)?
You can look at the LP and/or the Judgment to see who the Defendants are in the foreclosure of the 1st mortgage.
If the Plaintiff (who owns the 1st and the 2nd) does not mention themselves as a Defendant, they are free to pursue foreclosure action on the 2nd. Which means the purchaser at the Courthouse who buys the 1st, is buying it subject to the 2nd.
Or they could start the bidding at the combined value of 1st and 2nd. The moment of truth occurs at the first bid and the indication of how high the Plaintiff will go.
[addsig]
If we are buying the 1st mortgage subject to the 2nd, would that be disclosed prior to the start of bidding?
I would imagine a HELOC check would qualify.
This is just an educated guess though...not 100% sure.
You can strike a deal directly with the homeowner prior to the sale. To stop the foreclosure, you will need to bring the loan current.
You should look into purchasing the property "subject to". There is a forum specifically dedicated to this subject.
You could always assume the loan...but taking it subject to is better.
Thanks i aprecciate your www.answer.I will keep you posted.