Creating Jr Lien And Taking Title - How Do I Talk To 1st Lien?
I've been reading and studying and it's time I get my feet wet in Sub-To and need a little help. I'm going to take a property Sub-To and create a Jr Lien (in my mortgage company name) for my equity in the property. Then, I'm going to lease/option the property. Since I have a Jr lien, I'm legally entitled to make the payments and get the loan current (using lease/optioner's $). I've been told there is a bit of a science and it's very important how you speak mortgage company to mortgage company. I know I will be calling them arranging to catch up the deficient amount, make monthly payments and changing the mailing address. Any advice on verbiage I should know/use or any coarse I may purchase that addresses this particular issue? FYI, I'm in Texas.
Just curious, How did you get licensed as a mortgage company, and not know how to contact another lender, or the steps involved to clear this up?[ Edited by jeff12002 on Date 03/03/2004 ]
Very good question my friend. I've created the legal entity and meeting with my attny this week to finalize the details. No $ lending is taking place, other than lending paper (equity) and only Jr liens are being created (this avoids licensing issues...at least in Texas). But...there are several other issues to resolve. That's why I've employed an attorney. I'm just wondering if other private investors have gone this route (no DOS issues to mess with) and if they had any insight to offer. I personally know several investors that have gone this route and it's a matter of having all the legal paper work in place. They don't share that info (don't expect them to...they've paid good money) which is another reason for professional legal council.
You not setting up a mortgage company...
You are going to name a company to sound like a mortgage company.... And let them assume you are a mortgage company....
There is no Science.... You have to create a lien to your company/trust..... from the seller.... based on money you loan them.... ie. to catch up the payments....
Bottom line... it don't matter... they don't want the houses back.....
They deed you the house and your resale, rent etc....
You must be listening to Shaun... Tell him I said Hi....
David Alexander