I posted a reply about hard money and private lenders in a later thread that you started. Look there for that info.
The program that you described is shaky at best. A OR lawyer who focuses on RE and is a board member of a large REIA explained how an investor lost a case in court involving a tenant who was the prior owner. The short version is to stay away from any foreclosure situation where you are leasing the property back to the owner who was in default. If you are doing a lease/option the court will view this as a loan and apply the usury test to the loan terms.
BTW - Private lenders do not put up money for small seconds. At least private lenders who understand RE investing do not do so.
Posted by Joseph M Leon on May 08, 2006 at 22:55:07:
I live in the State of Oregon, any Investor on this site from Salem or near by areas? Even out of the State would be great. What I am looking is for a very specific type of lender or Private Money, any one knwos about any lender of this type? Let me explain a bit about the program that I am working with:
I know there is a lot of RE investors out there that have a program to buy propertys, helping people who is behind in their mortgage payments, and they buy their property for the amount in defaul by the borrowers, so basicly thats what am looking for, Private money and/or Investors who may want to do small loan amounts for this type of program?
Joesph,
Are you looking to sell? Your post is confusing. You say you are looking for an investor to buy the property for the amount of default. Then you say you want a private money loan. What are you looking for?
Posted by Joseph M Leon on May 09, 2006 at 24:43:11:
Some Investors called this the “Help Program”, because thats what it does, helps people to get cought up in their mortgage payments, and if they need $3k or w/e the amount, so they can be current on their mortgage, we buy their property for that amount, lease the property back to them and get the funds back in a short term.
So I want to know if somebody here in the state of Oregon, or even out of the state its ok by me, if they can work with me also, like I posted before, any suggestions or comments will be very much apreciated!.