Top Ten Questions I Got At CRE CONVENTION - Posted by David FInkel
Posted by David FInkel on April 01, 2002 at 15:43:30:
I wanted to tell all of you who were at the convention in atlanta that I really enjoyed meeting you and appreciated your warm welcome.
I also wanted to say thanks for all the great questions.
I will be posting the top ten most commone questions I got over the 3 days of the convention along with the answers.
Due to hectic sched. I will post them over the next few weeks.
SO here we go, QUestion Number ONE: “WHen I lease option a house from a seller, how do I make sure the seller does in fact keep making the mortgage payments?”
Best way is to pay your payment to the lender directly. (This is even more important if the seller has ZERO equity.)
Next best is to get an Authorization to Release Infomation from the seller giving you the info you need and permission to get their loan info. You do this by calling into the lender’s toll free hotline and entering in the loan number and the last 4 digits of the seller ss#. I recommend checking at least once a quarter to make sure they are current.
ALSO, get an Auth. for DIrect Payment. THe one we use says that if you pay the seller but they don’t pay the lender (or any other party that could create a lien on the property such as HOA, propt taxes, etc.) then you can start paying these 3rd parties direct and any money paid by you to them counts as money received by the landlord. Furthermore, for each one dollar you pay to make up a payment they didn’t make and that is in arrears, you get a $3 credit off money you owe them (only on that one arreage, then 1 for 1 credit as you pay them direct in future.)
I hope this helps,
P.S. the questions are NOT in any order of importance. I will post the next Q and A in a few days!