Posted by David Alexander on February 08, 2000 at 23:32:45:
First and foremost, deal with only motivated sellers, this is the major key.
Second, trust yourself, if you trust yourself that will come across and you will be trusted.
The second point is kind of like when you see a dog growling, if it senses your are scared it’s more apt to bite, if it realizes your not it most likely won’t.
David Alexander
DOS Clause - Posted by T Jent
Posted by T Jent on February 08, 2000 at 22:21:43:
If you don’t mind another DOS question from a newcomer…The wraparound concept intrigues me, as I have a couple properties with low fixed rate loans, one assumable and one not. If my understanding of the AITD is correct (i.e. I transfer title, make a new loan to buyer, keep paying on the old low-interest loan, and enjoy the profit from the spread) how do I persuade the buyer to trust me to keep up on payments on his property so my lender does not foreclose on him? Am I missing something?
Another factor to consider - Posted by John Behle
Posted by John Behle on February 09, 2000 at 15:53:21:
If there are plans for the buyer to refinance or a good likelihood they will, it can be easier to get the mortgage loan when it comes that time. Most lenders place a lsesser value on the payment history kept by the seller on a wrap vs. one kept by an escrow company.
We use an escrow company for some of our pre-foreclosure deals because we want to be able to verify a good payment history a year later so they can refinance.
Wrap Concerrns … - Posted by Michael Morrongiello
Posted by Michael Morrongiello on February 09, 2000 at 14:53:01:
T Jent;
Many buyers will simply trust you. Others really don’t care. If your buyer need some reassurance or a comfort level let them call the lender every so often to confirm that the underlying account is current, or provide them copies of your cancellled checks every quarter showing you have made the payments.
I would only go the escrow route if it does not cost you any money. If your buyer wants peace of mind and is wiling to pay a little extra each month to offset the costs of setting up a formal collection escrow account then that would be fine with me.
Michael Morrongiello
An escrow company for the payments - Posted by John Behle
Posted by John Behle on February 08, 2000 at 23:36:30:
All you need is an escrow company, bank or other loan servicing company. Your buyer pays them and they cut one check to the underlying loan(s) and the balance to you. Just a few dollars a month.