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Sort of Loan Modification

This topic contains 11 replies, has 0 voices, and was last updated by Avatar of salaguilar salaguilar 10 years, 9 months ago.

Viewing 13 posts - 1 through 13 (of 13 total)
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  • #5515
    Avatar of salaguilar
    salaguilar
    Member

    I’m not sure if this the right place to post this question.
    I had seller ask if I would make 50% of his mortgage how would he benefit @ end of term. His balance is about 480,000
    Mav would be about 225-250 max
    current payment is about 3300 + tax Ins
    has already tried loan mod was rejected
    Wants to stay property of course
    so if I do agree would the profit gain be @ 480,000 & split 50-50%
    or would have to higher? So in way would this be like a loan mod?
    I’m sure somebody has done one like this how did turn or is just a bad deal?

    #28752
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @salaguilar wrote:

    I had seller ask if I would make 50% of his mortgage how would he benefit @ end of term. His balance is about 480,000
    Mav would be about 225-250 max
    current payment is about 3300 + tax Ins
    has already tried loan mod was rejected
    Wants to stay property of course
    so if I do agree would the profit gain be @ 480,000 & split 50-50%
    or would have to higher? So in way would this be like a loan mod?
    I’m sure somebody has done one like this how did turn or is just a bad deal?

    1. This is a ridiculous payment for that value.

    2. I wouldn’t pay 50% of it, even if it were only $2000 mo.

    3. Why did he get rejected for a Loan Mod?

    4. Did he hire someone or try it himself?

    #28753
    Avatar of homesavers
    NULL
    Member

    You let him stay-you get burned. Sounds like a bailout. Doesn’t work anymore. I bet he got turned down because of his lack of income. Banks likes to see at least 500 bucks of play money per month after all expenses. If you don’t have that spread you cannot come out and play. They don’t help people that are underwater financially. They have a strict policy and guidelines they follow. I do not think it matters if ACES does it or not. You will find most owners have already tried on their own and either got something or failed. The whole idea of hiring ACES is to not have to play phone tag with the bank. Heck to me that is worth 2500 right there.

    #28754
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    Since finding out if ACES can help doesn’t cost a dime, why not complete the pre-qualification application?

    #28755
    Avatar of salaguilar
    salaguilar
    Member

    Had Company do loan mod charged 2500.00 got nothing.
    What if I split my 50% payment with someone would it make it a deal then?
    How can you get burned if he contributes & fails to make payment is he not out based on contract. Or Are we just supose to be looking for clear cut deals?

    #28756
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    Just the fact that the seller wants to remain in the property kills it for me. The guy didn’t qualify for a Loan Mod because they determined he could afford the payment. If that is true, why would you make part of the payment for him.

    Its time to move on. This is not a good deal. In fact its not even a bad deal. Its a really bad deal.

    #28757
    Avatar of homesavers
    NULL
    Member

    @salaguilar wrote:

    Had Company do loan mod charged 2500.00 got nothing.

    Have him file a formal complaint with the AG of California. You cannot charge for a service upfront and not perform. If this was an Attorney then file a complaint with the State BAR as well.

    Remember he stays in the home means you had better have a good “hired gun”

    #28758
    Avatar of salaguilar
    salaguilar
    Member

    I agree ugly deal. In these times almost all deals are real bad. I thought we are suppose to turn real bad into @ least somewhat good. I guess they must fit into a certain box in order to make money with our solution. Some equity maybe some negative equity, seller willing to move on, payments just right, maybe qualify for loan mod,these are doable, I guess anyone can do those when we find them.

    So far the answer I see to my request is how you would like the deal to go. Thanks everyone who has responded. I already know what the challenge is with deal. What I’m looking for is a solution where there seems to be none. But I guess if it is not a complete lay down,we should not bother.

    #28759
    Avatar of homesavers
    NULL
    Member

    All deals are bad. That is why the owner is in trouble. The market is not producing buyers. Banks are not producing money.
    You have to get creative and make a bad deal turn into a good one. How do you do that? Follow Scott Moyes and other successful NARS members.

    #28760
    Avatar of homesavers
    NULL
    Member

    @homesavers wrote:

    Follow Mister Moyes and other successful NARS members.

    Hey who is playing games here I wrote follow, “Scott” Moyes and it changed to “Mister” when I posted it.

    #28761
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @homesavers wrote:

    Have him file a formal complaint with the AG of California. You cannot charge for a service upfront and not perform. If this was an Attorney then file a complaint with the State BAR as well.

    Remember he stays in the home means you had better have a good “hired gun”

    I’m positive this wasn’t ACES but whomever it was they should have returned the money. However, they may have successfully negotiated the Mod but the borrower may not have liked it. In that case they did what they promised. Just because the client doesn’t like it doesn’t mean the company didn’t render services.

    It sounds to me that whomever he hired either did have or honor their money back guarantee. Either way, you are right, the client should contact the AG.

    What sucks is, its organizations like those that make it bad for all of us who have honor, integrity and honesty.

    But again, even so, it would still not hurt to have the client see what, if anything, ACES may recommend. It costs him nothing to find out.

    #28762
    Avatar of joecain
    joecain
    Member

    Hi Sal -

    I appreciate your time and desire to generate a transaction. Thank you for your energy since joining the NARS Network and for your entries on this Board. This section of the Board is the right place for your original post in this string.

    The responses that I have read indicate that many out there do not think that this is a good transaction to enter into. Please do not take their responses personally. Most of us that post on this Board likely have an ideal transaction in our heads and anything that falls outside our comfort zone is responded to with the proverbial “NEXT”.

    Here is how this string of posts has occurred for me:

    >> You posted some baseline parameters for a potential deal.

    >> An experienced Member gave an opinion and asked a few questions.

    >> Another experienced Member gave you another opinion and some of his experience working with banks.

    >> You then posted some new info about a previous failed attempt for a loan mod and asked a question.

    >> Both experienced Members then gave additional opinions, including a “NEXT”, and a suggestion for the Seller to contact an agency that can quite possibly assist him.

    >> You next posted regarding deals falling into certain boxes and being complete lay downs, or not generating those deals.

    >> This was followed by more opinions and suggestions by the two experienced Network Members.

    This is all that has occurred in reality so far. By the way, allow me to acknowledge the contributions by homesavers and “Mister Moyes” to this string of posts. They are greatly appreciated.

    With your permission allow me to weigh in with my own perception and opinion:

    >> Your initial post mentioned an MAV lower than the principal balances. No can do. The minimum MAV at the inception of the Trust MUST be at least the equivalent of the total of ALL encumbrances on the property. For this deal, you have suggested about $480,000.00.

    >> Our experience over the years is that the CONCEPT of a foreclosure bailout type transaction like you have outlined, where the original owner of the property remains in the property and leases it from the Trustee holding title to the property in the subject Trust, is sound and should work. Unfortunately, the REALITY has been far different. Almost every one of these bailout scenario transactions have failed in practice. Many have resulted in expensive and time consuming litigation. There are certainly lots of reasons and stories for this, but the bottom line seems to be that most folks who have defaulted in their obligation to make timely payments once, eventually do so again. Only this time, they get evicted, not foreclosed upon, and their perception is that you are taking their house from them, despite the fact that they signed Documents that say something different. Even when you do everything not just right, but exactly right, as Mister Moyes would say, and win the ensuing court battle, there is still a high cost to you, the other parties, the Trustee and likely to NARS. We have chosen to refrain from generating Documents for these types of transactions. Go ahead and acquire the property if you choose, but find a different tenant to become the Resident Beneficiary, not the original owner.

    >> Next, and this really is the key point for me: From my reading of what has been presented so far, there are a few of what I call “Missing Pieces”. Some vital pieces of info were either not presented to you by the original owner or you have not yet generated them into one of your posts. It is my opinion, and I do not know if this is the truth, that this may even be the way this deal is occurring for others and that may be why the main response has been “NEXT”.

    Often, our newest NARS Network Members get a case of “gotta-get-a-deal-itis” and may not recognize a “money-pit-type” deal when one pops up in front of them. The ability to post your deal here without fear of it being stolen and yet receive some honest feedback to assist you in making a business choice that works for you is one of the ways that this Discussion Board is unique and different from many others out there.

    Ultimately, it is your your choice how to proceed. Please continue to allow us all to assist in your success.

    #28763
    Avatar of salaguilar
    salaguilar
    Member

    Joe thank you for response. Your Explanation Makes sense. My feelings are not hurt I don’t have any lol. Again thank you for pointing out pitfalls of transaction.

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