Any Remedies For Giving Owner Some Equity After Short Sale?
I know usually there is little equity when short sales are used
but in this case there is about $80K
the home is in foreclosure
I've talked to one bank and I may be able to work it
Question:
Can I structure a way that I could give the owner some equity in the form of say assisting him to purchase another home since I'll have his equity, either by way of a joint ownership or ???
I know on the HUD that the owner is not allowed to receive any money if the bank is doing a short sale
I know I can give them some money w/ bill of sale for certain items but I would need to give this owner more
Don't want to be illegal, just asking
I just did that. The homeowners didn't like the bank rep and they "stuck it to the bank". They ended up with close to $9k. The bank in the end didn't mind they just wanted their money. The bank sent the net amount they were to receieve to the title company, and I was responsible in seeing that the old homeowners got their money. In the end it worked out, I hope this helps. Tim
HasSpoken,
Not sure what you mean?
Quote:
On 2004-01-26 21:40, HasSpoken wrote:
I just did that. The homeowners didn't like the bank rep and they "stuck it to the bank". They ended up with close to $9k. The bank in the end didn't mind they just wanted their money. The bank sent the net amount they were to receieve to the title company, and I was responsible in seeing that the old homeowners got their money. In the end it worked out, I hope this helps. Tim
A way I have helped a homeowner who allowed me to buy their house is to let them buy a house that I am L/O with a part of their www.equity.If you short sale their house do not allow them to L/O their present house,this would constitute fraud.
Give them a promissory note against the property . . . payable when you resell the house. If that is your intention.
BAMZ
If there is 80K in equity how much is the amount in arrears? You could make up the arrearage and take the property Subject To. Then you give the owner some equity.
BAMZ, So I could do a promissory note which exactly means?....
You are saying that I could offer them something on down the line when sold just like a subject 2 deal?
And this would not be construed as anything fraudulent, since I'd be getting the payoff down buy way of short sale?
Lynlinz,
Promissory Note . . . Offering them a flat amount or a portion of the proceeds from the sale after you clean, fix renovate and sell their house.
I wouldnt equivelate a Promissory Note with a Sub to deal, although you can use them for almost any kind of deal. If it makes them feel better, given them a 2nd or 3rd mortgage against the property.
If you want my honest opinion, when a bank states that a seller can get no money in a successful short sale, and you give them money anyways . . . I cant advise you on whether that is fradulent or not, you will have to form your own opinion on that. However, it could open you up to some problems with the bank and your SS could be revocked or reversed. Knowing those possibilities, you need to make a personal decision on whether it is worth it to you or not.
As for me, if the seller wanted a chunk of the dollars, and the only way to make it work was to SS, I would walk. However if I didnt need to SS to make this work and the sellers wanted a piece of it, the options are endless!
Best of Success!
BAMZ
Here is a simple, mutually beneficial technique that does not run the risk of violating the HUD1....
The Purchaser makes a perfectly legitimate tax deductible contribution to a cooperating, nonprofit, charitable housing help organization (I work for one that operates nationwide). That Organization makes a gift to the former homeowner.
The former homeowner benefits from the gift, the Purchaser enjoys the tax advantages of making a charitable contribution, while the Nonprofit furthers it's mission by assisting folks in need.
Is that for real ?
quote]
On 2004-01-27 09:11, TheShortSalePro wrote:
Here is a simple, mutually beneficial technique that does not run the risk of violating the HUD1....
The Purchaser makes a perfectly legitimate tax deductible contribution to a cooperating, nonprofit, charitable housing help organization (I work for one that operates nationwide). That Organization makes a gift to the former homeowner.
The former homeowner benefits from the gift, the Purchaser enjoys the tax advantages of making a charitable contribution, while the Nonprofit furthers it's mission by assisting folks in need.
[/quote]
Of course. Simply advise when you, and your Seller are ready. The Purchaser makes a dedicated, tax deductible contribution to the NP. Simultaneously, the Seller would have to request the gift, and submit a cursory application (name, address, etc.) , and brief letter of hardship.
Do you have a name and number of the np you currently use?
Thanks,
Matt
Check your PM.