Posted by phil fernandez on May 19, 1999 at 14:31:54:
JB,
You’d make one heck of a divorce lawyer. LOL
John Behle, Karp, and other pros. Help this lady? (LONG) - Posted by DanM(OR)
Posted by DanM(OR) on May 19, 1999 at 10:46:03:
CRE Online Friends,
My I buy houses ad brought this lady in. I know she has several options other than the hard money guy she is thinking of working with. I thought I would bounce it off the experts to get some ideas. This situation is a little different than I am used to.
Here’s the deal:
2 houses, one main home and a possible rental. The rental is vacant and the lady occupies the main house with her family.
The main house is a 5 bed / 2 bath with
-3 car garage
-barn
-2800 square feet
-Tool Shed
-Storage shed
-on 40 acres of land
-land is zoned EFU80 (not familiar with this zoning) I know that it is an agricultural zoning.
-she has beef on the farm (value unknown)
The story: Typical nasty divorce. He’s a total jerk blah, blah , blah. You fill in the blanks. There is a first on the house of $149,800. Payments are a total of $1,445/month which are affordable for her and her family. It appraised 2 years ago for $225,000. Comps now are about $255,000.
Her husband has a ghost lien of some type set up with attorney. Has agreed to Quit claims to property for $21,500, which the home-owner has already put into escrow to pay him off. She borrowed the money from her parents.
She wants to stay in the home, forever, if possible. She has two collections pending that she is protesting. One that was an $85 bill that went to collections and is now $700. Another for a cellular phone bill her ex took off with. She believes that her credit is VERY bad because of the collections. I imagine that it is not as bad as she thinks.
All she wants to do is a simple re-finance if possible to get a new first for about $171,500 so she can pay off her parents and the first. She says she is current on the first.
I know this is a slam dunk for the Karps and John Behle’s out there, but I am not sure where I fit in here and where to go next. I would really like to help this lady before she accepts a proposal from a hard money guy who is setting her up for financial rape.
Ideas:
-
A B, C, or D lender of some kind and work a standard refinance. Not sure where I fit in.
-
Creat a note and sell at closeing to a national buyer. I broker the note. (have never done a simultaneous note sale before)
-
A sale lease back which are usually tricky and I don’t want to be stuck in the middle for a long time.
-
Others?
Thanks for your input!
Dan Matejsek
Answered the post over on the Cash Flow Forum - Posted by John Behle
Posted by John Behle on May 20, 1999 at 24:28:11:
I posted it under your question over there. I’d approach the simplest option first of just getting her a refinance. That would likely be the cheapest and easiest solution.
Continued - Posted by DanM(OR)
Posted by DanM(OR) on May 19, 1999 at 13:43:24:
P.S.
Her main motivation for a refinance is to get her husband off of the deed and loan. She has given herself a deadline of 60 days. This is an emotional deadline not one set by anything.
Dan
Unless her parents need the money back, why doesn’t she… - Posted by FJW
Posted by FJW on May 19, 1999 at 13:01:34:
just give her parents a second mortgage on the place at a good interest rate & terms? May as well have her parents benefit, instead of a lender. It will cost her less and they can keep the money in the family.
If they do this and later want to discount the loan, you can help them broker it. If not, you’ve earned their trust for the suggestion and they’ll think of you next time or if they run into someone that may need your services. Unless there’s more to the story, at worst she should be able to get a small second without much fuss.
FJW
about that celphone bill and the ex… - Posted by raelynn mitchell
Posted by raelynn mitchell on May 19, 1999 at 12:31:01:
Why can’t she deduct the amount to pay that one off from the $$$ the ex will get for the quit claim? Not to sound stubborn or anything (I know divorces can get nasty) but if it was HIS bill, have HIM pay it. Have her lawyer put it in the divorce decree that he is to pay it since it was his. That way, if it comes back to haunt her in any way, she has a court document saying that the ex was supposed to pay it, which would create an argument with the credit bureaus about it being on her credit report. Now she only has one negative to worry about, which is a lot cleaner credit report.
Also, about collection accounts. Go back to the ORIGINAL creditor, not the collection people, and ask how much the balance is to pay it off “in full”. I am quite sure it will be substantially less than $700. Sometimes collection people are scandalous; you pay them off what they say you owe, they STILL don’t put the $$$ towards the original account, and now you have 2 negatives on your credit report–a paid collection, which is still a negative AND the original bill, which never shows paid in the first place, even though the collection rep said they would report you paid. It can and does happen.
Re: John Behle, Karp, and other pros. Help this lady? (LONG) - Posted by Bud Branstetter
Posted by Bud Branstetter on May 19, 1999 at 11:42:52:
Dan,
One piece of information you did not give is can she afford the payment? Does she need to rent/lease out the other property? Is a deal possible to get a long term below market lease on the rental for your payment. Is she treating the land as income producing or should it be rented out? How much of the value is the house vs the acreage?
A good mortgage broker can find the proper loan if she can show the ability to repay. A note deal would probably be at a higher interest rate. Get her to fill out a 1003 then pull her credit report. Discuss them with your mortgage broker as to what he can do. Your broker is likely to give a referral fee if allowed.
Re: Continued - Posted by JohnBoy
Posted by JohnBoy on May 19, 1999 at 14:04:11:
The quit claim deed will take care of getting hubby off the deed. If hubby doesn’t seem to care and is more hungry for cash then borrowing from her parents to pay him off by quit claiming over his interest will take care of it. Doesn’t matter if he stays on the loan or not. Once he quit claims over his interest he has no more rights to the property. Only she does at that point. Hubby will just remain equally liable for the loan if she defaulted. As long as he don’t care then she should love this idea! Kind of gives her something to hold over hubbies head for the next whatever number of years are left on the loan! Hey honey, I need that money back you owe me that I had to pay the collection agency because of you. If you don’t pay it then I can’t make the mortgage payment this month. And guess what hubby dear? YOUR still equally liable to pay back that loan! If I’m late, your credit is effected also! 
See what I mean? She could have a lot of years left to drive him nuts! It could also become a problem if he ever tries to buy another home. His credit report will show he still owes on this loan until it gets paid off. So if her parents will loan her the $21,500 he wants and if he’s desparate for the money and willing to sign over his interests, then tell her to get the deed man! She gets the property and he gets to stay equally liable on the loan with no rights to the property.
Re: John Behle, Karp, and other pros. Help this lady? (LONG) - Posted by DanM(OR)
Posted by DanM(OR) on May 19, 1999 at 13:57:28:
Bud,
According to her, “they mortgage payment is not fun, but is affordable” She has no problem paying it.
I think she is raising beef on the land. Income producing? I would count any as gravy.
She may or may not be willing to rent it out.
I will try to get a 1003. Aren’t they on fannie mae site some where? Do you have a web address for them?
I agree, a note deal would be higher interest and may not work out for her. I just want to go back to her with options.
Thanks!
Dan