Posted by BigHarold on March 18, 2006 at 18:43:51:
I just read this article “Dreams Foreclosed,” and this details three scams to steal homes in foreclosure, none of which I do. My plan actually does help the homeowner, and since I’ll be living in the property, I know the payments will be made. I sure wish people would look at the details before they confuse what legitimate people do to help with scam artists. Gives us all a bad name, and unfairly I may add. With the “I Buy Houses” signs in the article too, they lump all investors together with the scam artists. Makes me sick.
Posted by BigHarold on March 18, 2006 at 05:21:49:
Hello all,
I’ve said it here before, and I’ll keep saying it until everybody believes me - SHORT SALES REALLY WORK! I mentioned here before how I had used the call from this website on short sales to get one where I netted almost $10,000! I had another 2 deals right behind it, where I made another $7K between them.
I say this because I just got approval on one where the bank agreed to take $25K on a property where over $62K was owed! That’s of course less than half, and even though it needs a little work, like $10-$15K, I’ll still assign it to an investor for $5K profit. Everybody wins, as the investor gets a house he can turn for a quick profit. I haven’t assigned this yet, but hopefully will have an investor in short order!
The most awesome thing about this is that I’m about to get a property for myself in this way. In looking for pre-foreclosures to do short sales, I came upon one that was perfect for me and my family, with a great interest rate and plenty of equity. I get to enjoy a great house, and by taking over the payments, I can also help the original owner by not having his credit ruined. How’s that!
This is an awesome business, and anybody can do it. I never want to hear that short sales don’t work. I’m proof that they indeed do!
Congrats! With the home you are moving into, how did you get that deal done? Subject to and new financing on the agreed upon amount with the bank? Just curious because I have been looking at differents avenues for aquiring my own residence.
Posted by BigHarold on March 18, 2006 at 10:09:11:
James,
I’m taking over that property subject-to, because they have a great interest rate on 2 loans, so it’ll be easier and better to just keep making that payment. That’s the way I’m helping their credit, so they’ll be able to get another home much sooner.
Posted by BigHarold on March 18, 2006 at 11:03:53:
What’s that mean? How is the consumer being hurt here? They were going to lose the house to foreclosure and ruin their credit, now they’re having their payment being made every month for 3 years at most, until I refinance and pay it off, doing an even better thing for their credit. Am I missing something here?
It is the only time you would. If it didn’t have the dos clause you would just assume the loan. The dos is no big deal, though some who don’t do sub2 will tell you otherwise.
Posted by BigHarold on March 18, 2006 at 10:31:18:
I think most people here that have done these deals will tell you that that “due on sale” clause is mostly a paper tiger. If you continue making the payments in full and on time, you’ll never hear from the bank. Yes, they could call the loan due, but has anybody heard of this happening when the payments were being made? I haven’t.
I’m not trying to rag on you. I am just trying to warn people off trying capitalize on the credit aspect. By mentioning helping or saving someone’s credit you are leaving yourself open to being sued under the Credit Repair Organizations Act.
Hold it. Y’all are intertwining the short sale and sub2. They are totally different animals. The short sale is the process where you go through the bank and BUY the property for less than is owed. Sub2 on the other hand is where you take over payments subject to the existing mortgage parameters. Basically you are making payments for the original mortagee. I have had late payments because the bank did recognize me as a third party authorized to make payments HSBC & Wells Fargo). After hours of discussion with cust. disservice, collections, which I believe are being outsourced to India, and the research department I finally was added as someone who can make payments for another party. Keep in mind that the original mortgage holder’s credit is at stake and shows up as late pays. Bottom line, the loan was never called due.They don’t want property, just their money.