Need advise on this CREATIVE deal - Posted by Robjan

Posted by Anthony Guinn on May 07, 1999 at 14:06:47:

I want to clarify. It is not a “Quick” claim, but a QUIT claim deed. It is a deed signed by the current mortgage holder which reliquishes all rights as well as responsibilities to the property to another party. I am not sure about the due on sale clause. That should be covered in the terms of the mortgage. If not you can contact the lienholder to find out. I am on my lunch break and must return to work. I will get back with you later. Good Luck!

Need advise on this CREATIVE deal - Posted by Robjan

Posted by Robjan on May 04, 1999 at 17:37:15:

Heres the situation. We have been talking to a woman who is 4 months behind in her mortgage and is not as of yet in foreclosure. This is what we purposed to her.
Current mortgage balance is $110,000. Market value is $148,000. Been listed since 2-22 with a realtor. She wants to move to a more affordable town house. She would need $12,500 to get her in it.
She checked with the realtor and can get out of the listing no problem. This is what we purposed.
We would bring her payments current which would hopefully allow her to refinance, pull out the 12,500 she needs to get into her townhouse , plus the $4608 we loaned to her to bring her mortgage current. Then have her lease option it to us with the sale price being what the current mortgage balance is at time of sale.
She also had a Chapter 13, 2 years ago. We know we will have to check with some loan officers to see what her chances are to refinance. Our question is,
Is this a feasible thing to do? What can we do to make sure she follows through with this once we make her payments so she pays us back with the refinanced money? Any other suggestion? Thanks for your help. Robert and Jan

Be VERY careful on this CREATIVE deal - Posted by Tim (snj)

Posted by Tim (snj) on May 04, 1999 at 22:30:31:

Be careful - did she file the c-13 2 years ago or was it discharged 2 years ago? If she filed 2 years ago then most likely it is not yet discharged and won’t be able to get any financing. If it was discharged 2 years ago and she is behind in her payments after just two years of a “clean start”, I would be VERY reluctant to trust her with any of my money or to continue to make her new morgage payments while you are leasing from her.

Most chapter 13 plans are never completed and the cases are thrown out. the people who filed never learned they have to change their spending habits and end up further and further in debt until they lose it all in a 7.

Try to find a way to cash her out if at all possable.

My .02 - don’t do a L/O with her.


Re: Be VERY careful on this CREATIVE deal - Posted by Anthony Guinn

Posted by Anthony Guinn on May 06, 1999 at 19:36:03:

Sign a contract with her with a contigency clause of her getting refinanced. Don’t put any of your own money up without a written contract. It doesn’t have to be written by a lawyer. As long as you and she both sign it, it is a legal and binding contract which is admissable in any court.

Or you could have her quit claim deed the property to you, and you could refinance yourself. then give her the 12,500 she needs plus whatever differences you agree to. There are several other options you have available to you as well. If you would like to discuss them, let me know.

Re: Be VERY careful on this CREATIVE deal - Posted by Robjan

Posted by Robjan on May 07, 1999 at 12:10:34:

Thanks for your response Anthony. Not too familiar w/quick claim deed. Does it avoid the due on sale clause? If I refi lenders a looking at 70% ltv which wouldnt give me enought to pay her. If Iam wrong here let me know. I would also like to hear your other options. Update: started foreclosure proceedings 5-6.