Posted by Rick_SC on April 04, 2002 at 23:23:01:
One way to handle it is have the seller open a bank account just for handling this payment. He can set it up so that you only have the ability to deposit (or just give you deposit slips) and have the payment made automatically. This is a good way for keeping records.
Best to ya !!
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?”
Answer:
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,
David FInkel
P.S. the questions are NOT in any order of importance. I will post the next Q and A in a few days!
Re: Top Ten Questions I Got At CRE CONVENTION - Posted by Mike
Posted by Mike on April 01, 2002 at 18:18:16:
I have used an escrow company to middle man the deal as well, they collect the money and pay the lender directly and it only costs $5 per month to have the whole transaction monitored.
Re: Top Ten Questions I Got At CRE CONVENTION - Posted by Rich Hamilton
Posted by Rich Hamilton on April 02, 2002 at 14:14:52:
What state is the escrow company in? I’ve talked with several in California and haven’t found one that will perform this service.
Thanks,
Rich