Posted by Mark (SDCA) on November 22, 2000 at 08:44:14:
Well… I am not sure I would go as far as “the bank couldn’t care less”. How about “they have more important problems to deal with.” In any event, I wouldn’t advertise your subject to deals to the bank. If they don’t know about it, they won’t accelerate.
As for the length of time, I doubt you have a reasonable amount of time. It depends on what is in the contract and state law. However, you should have enough time to refinance if there is equity. If there is NO equity, why would the bank want to foreclose?
Your contact list sounds good to me. Then just open up the discussion with the people who call.
Posted by MasonNV on November 21, 2000 at 10:25:59:
Hi everyone –
I have heard alot about people taking property subject to, or using a quitclaim deed to take over payments. This may be a silly question, but what about the due on sale clause that appears on most home loans now a days? Is it possible to simply take over payments, and to take title and not have to worry about the bank? I know assumables are few and far between, so how is that you all are doing this?? Especially in Las Vegas, with recent development, most mortgages are less than 10 years old.
So the question is, if I found someone who would carry their equity in a second, could I just take over their payments on the first??? A point in the right direction would be benificial…
Posted by Mark (SDCA) on November 21, 2000 at 15:48:13:
The simple answer is that yes you can take over payments. You WILL violate the due on sale. But so what? Banks want payments. They don’t want properties. If you are really worried about it, have the seller deed the property in a trust and then transfer the beneficial interest.
Posted by MasonNV on November 22, 2000 at 24:43:17:
So if I just take a property and take over payments. The bank could care less as long as they get their money right?
So lets say the bank does accelerate the note, whats the proccess there? Do I get screwed? Or is there a resonable amount of time to unload. I guess if the banks had to transfer the loan to me or foreclose they’d rather let me pay right?
SO all that being said, what is a good aquisition strategy for a newbie? Here’s my plan…send out as many post cards to out of staters, tax delinquents, divorces, evictors, and anything else I can pull at the court. This coupled with a few good ads should bring in some deals right? Next step tie up and flip, or finance private money style and rehab, or take over payments and hold…
Does this sound like a good rough draft of a business strategy…ATTENTION ANYONE: please chime in with your comments about this, as my first step is coming clear to me and I’m starting to figure this whole thing out. I cut back my hours at work, to basically force me to take action, so now I cant go out to eat, and every dollar is precious to me…this monetary starvation is the hutzpah that I need to get out there and do it…