Need Pre-foreclosure Help?
I have a homeowner who is about to lose their home. They owe 118K and market value is about 125-130K due to lost of job. They want someone to buy it and lease it back to them for a year then they will buy. They have a stable job now, but not enough money to get back current.
I know their is not a lot of equity. I need to know is their anything i can do to make some MONEY on this one and help them out as well. These are some solutions i was thinking of. Please let me in on some more options i might have.
1. Assign the contract to someone who will lease it back to them and get payed from payments and on the back end when they sell.
2. Sell it for way under market 70-90K but how will that go since they will not even being paying off all their mortgage?
Please let me know what else I could do? Thanks in advance.
Your first step would be to find out how much it would take to bring the subject loan current.
What are the monthly payments? (PITI).
What monthly pay they can make.
The contract assignment will be based upon its value.
To sell it below the payoff you will need to do a short sale.
[addsig]
Who is their lender?
Quote:
On 2004-12-17 15:24, JohnMichael wrote:
Your first step would be to find out how much it would take to bring the subject loan current.
What are the monthly payments? (PITI).
What monthly pay they can make.
The contract assignment will be based upon its value.
To sell it below the payoff you will need to do a short sale.
Lease-Leaseback in Illinois can be viewed as a disguised high-interest loan, and therefore I highly recommend against doing so. Short sale may be in order here, or loan modification with tacking of past-due balance to the principal.
yes, I speacialize in financing people like your customer, when the ltv is too high I will buy the prop and lease back to them while i repair their credit and prepare to sell back to the customer in 6-8 months.
ex if the house is worth 200,000 and the payoff is 150,000 that 75% ltv, can't get financing so, 150,000 to payoff @12,000 closing costs 15,000 to my company to hold the loan. new loan amount = 177,000.
NOTE on the HUD at closing you CAN NOT be the individual getting the 15,000 it must be made to a company, and not the lender. I am a lender that gets the lending fees, I also setup a company name that sounds like it could be a realestate company or a contractor. it is never questioned why this company is on the HUD getting 15,000. I do as little as 1 per month and as many as 4 homes per month I use the same lenders always, and it is never questioned.
note this info is worth alot of money read it carefully and you'll be making 30 or 40,000 / month
Quote:
On 2004-12-17 21:50, foreclosurelender wrote:
yes, I speacialize in financing people like your customer, when the ltv is too high I will buy the prop and lease back to them while i repair their credit and prepare to sell back to the customer in 6-8 months.
ex if the house is worth 200,000 and the payoff is 150,000 that 75% ltv, can't get financing so, 150,000 to payoff @12,000 closing costs 15,000 to my company to hold the loan. new loan amount = 177,000.
NOTE on the HUD at closing you CAN NOT be the individual getting the 15,000 it must be made to a company, and not the lender. I am a lender that gets the lending fees, I also setup a company name that sounds like it could be a realestate company or a contractor. it is never questioned why this company is on the HUD getting 15,000. I do as little as 1 per month and as many as 4 homes per month I use the same lenders always, and it is never questioned.
note this info is worth alot of money read it carefully and you'll be making 30 or 40,000 / month
I would not recommend this type of set up, as it is simply illegal. Any deal that is set up to fool or hide something like this will get one into a lot of trouble.
[addsig]
ForeclosureLender;
JohnMichael is K-Rekt!!!
You are risking a failure to disclose issue -that is if you are dealing with withfederally insured lenders.
MWM:
Try and use private investor dollars to either
a) pay up
or
b) pay off the mortgage loan.
This shold be done via setting up a Landtrust for the benefit of the Pre-foreclosure owners in the name of their Property Address - e.i "123 MAIN ST. Trust"
The private investor funds the TRUST and NOT the Homeowners directly to satisfy the arrears and/or the pay off of the Mortgage.
The Homeowners
1-
Set up their trust
2-
appoint a 3rd Party (non-biased) Trustee to hold title
3-
Then direct the Trustee to A$$IGN Beneficial Interest in their Trust to the Private Investor who pays the arrears or mortgage loan off.
4-
The owners then sign a LEASE from THEIR TRUST to occupy & use the home according to their Beneficiary Agreement and
5-
Finally after 1, 2 (or 3-5 maybe) years the property is taken out of the trust, the Owners Refinance to Pay off the Private investor(s).
This is how my investor partners and i provide qualified homeowners(who can afford to stay) a solution to avoid homeloss through foreclosure.
No Lying to a Federally insured Lending institution (by fraudulently hiding investor fees) this can get you a set of ORANGE PAJAMAS to go with your BRAND NEW 6' x 9' ft accomodations for and ALL-INCLUSIVE VACTATION STAY in CLUB-FED and a CELLY Named BUBBA to boot!
(smile)
Hope this Helps!
Derrick Ali :-D
DerrickAli,
How does the private investor make money in this case? Can you maybe clarify step 5?
thanks, Ed.
Normally Structure a Decent % of interest return on the Money lent to pay up arrears.
Also the other profit centers include:
- Equity Share (beginning at 50/50)
- Tax Benefits ( like depreciation)
- Monthly Positive Cash Flow
- Future Appreciation (If Any)
If the Property is taken over with the existing mortgage in place by a new Tenant-Buyer (instead of allowing the current owner to remain) then...
- Up Front Cash from the TB is another way an investor can profit.
Hope this helps!
Derrick Ali :-D
I am very interested in learning how to do that lease buyback as I have many clients in foreclosure looking for sloutions to stay in their home. Can I pm you to learn more.
Thanks,
Will
Quote:
On 2004-12-21 20:39, nfihelp wrote:
I am very interested in learning how to do that lease buyback as I have many clients in foreclosure looking for sloutions to stay in their home. Can I pm you to learn more.
Thanks,
Will
I would suggest taking a look at Derrick Ali's
Product page at http://www.thecreativeinvestor.com/ChanPart-DerrickAli.html
Not to just see what teaching material he has, but to see his postings as well to learn even more
[addsig]
Quote:
On 2004-12-16 10:39, mwm12 wrote:
I have a homeowner who is about to lose their home. They owe 118K and market value is about 125-130K due to lost of job. They want someone to buy it and lease it back to them for a year then they will buy. They have a stable job now, but not enough money to get back current.
I know their is not a lot of equity. I need to know is their anything i can do to make some MONEY on this one and help them out as well. These are some solutions i was thinking of. Please let me in on some more options i might have.
1. Assign the contract to someone who will lease it back to them and get payed from payments and on the back end when they sell.
2. Sell it for way under market 70-90K but how will that go since they will not even being paying off all their mortgage?
Please let me know what else I could do? Thanks in advance.
I might have a way for this deal to work for you. There might be some money but perhaps the deal will depend on the location email me
**Please See My Profile**
thanks,
Charlie
Charlie-Looks like you are trying to market yourself-Post your reply so that all can learn-I would suggest reading the rules of this forum[ Edited by JohnMichael on Date 12/22/2004 ]
Thanks for the Pitch John Michael!
Derrick Ali :-D