RE Foreclosures
HERE IS A RECENT EXAMPLE:
A Client of mine was severly delinquent -
And about a month B4 the Sheriff's Sale was to take place:
I contacted (VIA EMAIL) the lender to negotiate a deal on
his behalf.
the Supevisor in Delinquency Admin. REPLIED:
Dear Mr. Weese:
Your email was received by this office and I am responding
to your query.
I believe you are requesting us to consider reinstituting a
prior repayment arrangement you had with the prior
servicer.
As the status of the loan has significantly changed since
the prior servicer had the note I cannot guarantee we would
be able to institute the same
format;
however, we do have a myriad of plans available to assist
you in keeping the home if you are capable of sustaining
the note.
We would be more than willing to send you the necessary
documents to make application.
Your options will then be presented to you based on your
ability to qualify.
You have a representative assigned to your note. Her name
is Shirley C.
and she can be reached at 1-800-***-**** x7466.
I have also CC'd her on this correspondence. Should you
wish to apply for assistance or receive information on the
account please contact her Mon-Fri between 0800-1600hrs
PST.
Sincerely,
S. R
Loan Resolution Supervisor
******************
RESULTS:
We purchased the home tthrough an Equity Holding Trust to
avoid the Due-On-Sale Clause!
And got the owner back on track!
He's now re-buying the home through our 'silently'
negotiated contract which is held by the Trustee. If he
misses a payment he'll be evicted by a Land Trust in
His 'OWN' Name? Kind of silly to contest this action in
front of any Judge!
In two years his credit will have healed, good enough to
refinance at favoravble terms and settle us out for our 50%
Equity Interest!
ALL INCLUDED INFORMATION IS PROPRIETARY AND CONFIDENTIAL
This message contains information, which may be
confidential and privileged.
Let me know if this information helps you!
I can get you more info on Equity Holding Trust and their
uses for No Money Down, No Credit Check and No New Bank
Loan Purchases!
Much Success,
DerrickA
[addsig]
I like the part of purchasing the property with the Land Trust, but there is the part of keeping the person in the property that I don't like. The reason is if they can afford to put in to pay rent, then they should be able to afford a forbearance agreement with the bank.
Personally, I don't want to have to create wishful thinking on the person who is being foreclosed upon, just to evict them later on.
For Derrick
Derrick,
When bringing the back payments current for an owner who remains in the property:
How do you make your money other than the 50/50 split with the homeowner.
Do you earn upfront money from the homeowner for finding a lender for them (a lender who is willing to take a beneficial interest in his trust instead of a 2nd)
A fee for negotiating with the lender for an extension of time;
And if either or both of the above, wouldn't you need to become a "temporary beneficary" so that you would not be considered a foreclosure consultant?
Thanks for any help.
Justin
Can this type of work out be done in California. I thought it was illegal to rent back to a foreclosed owner? I'm not sure but if you could explain this to me it would help.
JUSTIN:
I earn my initial fee as a consultant whom arranges the workout of the Pre-Foreclosure Homeowner's financial mess.
Once I straighten this out I am paid in full.
However; if a delinquent owners doesn't have the total fee I DON'T OFFER THEM MY SERVICES UNLESS THEY CONVEY AN INTEREST (via LANDTRUST), Then I not only have motivation to correct the problem I know have EQUITY interest in the property.
Keep it simple: First offer to HELP the owner for you fee or Equity interest, then protect your work & money by obtaining ownership interest through a LANDTRUST.
VAL:
The problem with CALIFORNIA is that it has A VERY COMPLEX LAW on how one can operate as a FORECLOSURE CONSULTANT, Attorney, or Real Estate Professional engaged in pre-foreclosure consulting/sales-transactions!
THE DIFFERENCE YOU REPRESENT IS YOU ARE ACTING AS A BUYER. (the Only recording of the lease-back is held in secrecy of the Trust)
YOUR DOWN PAYMENT WILL BE THE WORKOUT PLAN (Services Rendered) Plus ANY Make-Up PAYMENTS on the Arrears balance (Which your Tenant or Resident Beneficiary will re-imburse you)
You can RENT BACK TO THE OWNER Through an Equity Holding Trust (tm) ---goto: www.Land Trust.net for MORE DETAILS.
Thie EHTrust(tm) will aid not only YOU but the Owner as well to overcome legal issues regarding your leasing the home back to them as they will be the SOLE-BENEFICIARY listed on the (only recorded) Trust document.
The owners will give you 90% interest and keep 10% (non-voting) interest for Tax reasons and to prevent them from violating the DOS (Due-On-Sale) clause in their current mortgage (which will be kept in-place until the owners' Credit Heals and are capable of re-financing out YOUR EQUITY which you so-rightly earned!
Also, in the event they should have any mis-givings about this arrangement, they would not be able to revoc (cancel) this agreement less they have a SADISTIC Desire to have their bank Striclty Foreclosure the loan and by doing so EVICT themselves?
Finally, if they DO NOT PAY The TRUSTEE as directed You can EVICT THEM Without challenge.
After-all the EHTrust(tm) is RECORDED in the "JOE BLOW LAND TRUST"! -Hard to explain to a Judge:
I Want to Stop this Mean Nasty Trustee of the "JoeBlow Land Trust from Evicting Me (JoeBlow)!
Much success,
DERRICK ALI
<IMG SRC="images/forum/smilies/icon_biggrin.gif">
[ Edited by DaliOne on Date 05/09/2002 ]