Posted by Jonathan Rexford on March 15, 2000 at 07:43:06:
TOO EARLY HUH? LOL anyway I have tried a few Sub Prime But Know go I have a few calls in already. How about this Idea Assign My Contract to my seller and take note back and payable at closing? Just another Idea I guess. Thanks for the help
Jonathan Rexford
Mortgage Broker/Builder
Seasoned TITLE - Posted by Jonathan Rexford
Posted by Jonathan Rexford on March 13, 2000 at 07:43:42:
Has any Mortgage Broker or Investors Run into any problems with getting Tenant/Buyers to purchase homes from an investor using lender funds to payoff Original seller. I called two lenders on Friday and they said they could not fund these types of transcations. I have done quite of few regular transcations with both lenders but it seems that They want to cut down on fraud? I guess I would like to here your comments.
Jonathan Rexford
Mortgage Broker/Builder
You’ve just discover another advantage of providing Seller Financing - Posted by Michael Morrongiello
Posted by Michael Morrongiello on March 13, 2000 at 11:28:23:
Jonathan:
Your right, many lenders do not want to lend money on a purchase money transaction where the proposed buyer is not purchasing the subject property directly from the seller who has “legal title” ownership.
Creating options, sandwich leases, and even assignable contracts with sellers in an attempt to “wedge” yourself into a deal does not necessary equate to a pay day for you if your “retail” buyer cannot fufill the purchase of the property from you due to a problem in their gettting financing.
For the most part YOU can agree to sell the “retail” buyer the property and provide them financing yourself with a private SELLER CARRY BACK purchase money mortgage or trust deed.
You then arrange to SELL that mortgage or trust deed for cash and then that cash is used to pay off the original seller. This allows you to avoid these ownership and title problems.
Michael Morrongiello
Re: Seasoned TITLE - Posted by JPiper
Posted by JPiper on March 13, 2000 at 08:17:54:
I?m not doing sandwich leases?.so I haven?t run into this specific problem. But ?seasoned title? is a growing issue?.and has been discussed numerous times in the past on the newsgroup.
In your particular case why don?t you simply assign your deal to your tenant/buyer?? For your backend take a note which is due upon completion of the tenant buyers financing. Now the tenant/buyer is going to buy directly from the seller?who is seasoned.
JPiper
Re: You’ve just discover another advantage of providing Seller Financing - Posted by Sheik
Posted by Sheik on March 13, 2000 at 11:45:08:
Exactly what I was trying to explain to my realtor.
Please comment on this link above -
http://www.creonline.com/wwwboard/messages/63711.html
Thanks
Sheik
Re: Seasoned TITLE - Posted by Jonathan Rexford
Posted by Jonathan Rexford on March 14, 2000 at 19:32:14:
Jim,
The concept sounds good but if my back end is with T/B then my assignment to T/B creates no back end with out banks funding. Am I missing something? I do not think so but the Idea of taking back a note is a good thought if and when My T/B decides to refinance
Re: Seasoned TITLE - Posted by JPiper
Posted by JPiper on March 14, 2000 at 20:23:39:
Actually, I’m not very impressed with my own advise on this one. Must have been too early in the morning.
You could assign the contract, taking a note back for your backend…but that isn’t going to help your tenant/buyer in paying your backend off at this time. It would pay off the owner.
Better to look around for a subprime lender who will not look at title seasoning. They’re still around in my area.
JPiper