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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Why make it simple when complex looks so attractive Posted by Rick Harmon on August 01, 2003 at 3:45 PM In Reply to: Complex introduction to the business posted by Gary Pascua on August 01, 2003 at 2:39 PM : Ward: : First of all, I attended my first seminar up in HB and enjoyed it. Like you, I had to come up from San Diego, but it was certainly worth it. : Anyway, I am very new to the foreclosure business and went door knocking for the first time the other day. Fortunately, I was allowed in to a home and spoke with the owner. There's a first of 400K (defaulted 16K) and a second of 100K. FMV is around 850-900K. It seemed like a no brainer. She was very willing to hear what could be done to stay in the house and willing to share some of the profit. Unfortunately, she pointed out a third lien (judgement)for $1.5 million (900K principle, the rest interest) against the property that she had no idea existed and never showed up on the CRR data/research. I don't know when CRR does their research on a property, but the lien was supposedly recorded in April, her NOD was dated July 8. It's an ugly divorce situation where she thinks her husband and father in law had it somehow placed against the home, because supposedly the only document she signed was a promissary note, not a deed of trust. Her soon to be X has co-ownership of the home. She really thinks her husband is willing to take 50-100K to sign the home completely over to her and perhaps drop the huge lien. : Is this anything I should pursue (carefully of course with advice from someone with experience) or drop it altogether? She says she cannot afford a lawyer but would take any advice she can get before appoaching one with an idea in mind. : Also, as a side question. If an owner signs their home over to me, it goes through escrow and I take ownership, is it legal to sell the home back to them if they really want to live there, with of course, keeping in mind I would sell it for a profit? : Anyway, sorry for the long message. Thanks. : Gary Gary, I'm always fascinated when people devise complicated schemes to further get themselves into deep trouble. If the property owner's in trouble with his lender and willing to jeopardize the roof that's over his head, do you really think he'll make a good partner for you? A close friend of mine once suggested to me that I have a knack for attracting the sickest girls in my life and it would be easier to just walk up to one and offer to buy them a house and eliminate the heartache. Anyway, my point is that YOU can still avoid the misery you are trying to attract here by devising a much more straightforward plan, one that excludes cooperation with the current owner. If you think this all of the way through, you'll either have an interesting time explaning your elaborate scheme to your future partner's bankrutcy judge or to a civil court judge who thinks you've create a mortgage-type relationship. Please count your blessings and be careful who you pick as partners. Rick Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward: : : First of all, I attended my first seminar up in HB and enjoyed it. Like you, I had to come up from San Diego, but it was certainly worth it. : : Anyway, I am very new to the foreclosure business and went door knocking for the first time the other day. Fortunately, I was allowed in to a home and spoke with the owner. There's a first of 400K (defaulted 16K) and a second of 100K. FMV is around 850-900K. It seemed like a no brainer. She was very willing to hear what could be done to stay in the house and willing to share some of the profit. Unfortunately, she pointed out a third lien (judgement)for $1.5 million (900K principle, the rest interest) against the property that she had no idea existed and never showed up on the CRR data/research. I don't know when CRR does their research on a property, but the lien was supposedly recorded in April, her NOD was dated July 8. It's an ugly divorce situation where she thinks her husband and father in law had it somehow placed against the home, because supposedly the only document she signed was a promissary note, not a deed of trust. Her soon to be X has co-ownership of the home. She really thinks her husband is willing to take 50-100K to sign the home completely over to her and perhaps drop the huge lien. : : Is this anything I should pursue (carefully of course with advice from someone with experience) or drop it altogether? She says she cannot afford a lawyer but would take any advice she can get before appoaching one with an idea in mind. : : Also, as a side question. If an owner signs their home over to me, it goes through escrow and I take ownership, is it legal to sell the home back to them if they really want to live there, with of course, keeping in mind I would sell it for a profit? : : Anyway, sorry for the long message. Thanks. : : Gary : Gary, : I'm always fascinated when people devise complicated schemes to further get themselves into deep trouble. If the property owner's in trouble with his lender and willing to jeopardize the roof that's over his head, do you really think he'll make a good partner for you? A close friend of mine once suggested to me that I have a knack for attracting the sickest girls in my life and it would be easier to just walk up to one and offer to buy them a house and eliminate the heartache. : Anyway, my point is that YOU can still avoid the misery you are trying to attract here by devising a much more straightforward plan, one that excludes cooperation with the current owner. If you think this all of the way through, you'll either have an interesting time explaning your elaborate scheme to your future partner's bankrutcy judge or to a civil court judge who thinks you've create a mortgage-type relationship. : Please count your blessings and be careful who you pick as partners. : Rick Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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