Buying a house investor style, low down/easy qualifying

[dtfsux]

How are the people selling ok with leaving the loan in their name for an extended period of time? Basically their credit rating is hanging on you paying the mortgage? Can't imagine people doing this that have 15-20 years remaining on their mortgage. Wouldn't they be relying on you to pay their payments for the remaining timeframe of loan?

Trying to understand the big picture of this and would like to see it from the other side....the sellers side. Are you responsible for their risk in selling you the house this way?

This practice isn't aimed at people who are ahead or on time with their mortgage. This is a way to essentially save their credit and give them a future second chance at the American dream effectively preventing foreclosure. A lot of investors who do this let the people live in the house for one year for very little rent as a way to make sure there is cash flow immediately. Others who have enough money immediately pay the mortgage off, kick the people out, fix the house up a bit, have it reappraised and borrow all of the equity out of the home to put into a new property, risky shit but it makes for OUTRAGEOUS growth of wealth.

Exactly. People willing to do this are desperate. They will loose the house otherwise, so they have nothing to loose. Sometimes, you can offer them a little money to move, etc. They are destined for absolute credit damage but stand a good chance of good credit reporting if you buy the house.

Buying this way is all about confidence and building a relationship with the seller. they have to trust you

Actually in some states, it is taboo to rent back to the seller. Sellers have claimed they did not know they SOLD the house since they did not move

Growing in a house is not the greatest idea LOL.. If you only had a few plants then great but obviously the more plants you have the wetter your place is going to get atleast here in BC. If your going to go that route I would suggest you have your airflow in your grow set up properly because mold in a house will kill your future sale lol peace out Headband707

I had 10KW in a house with no mold issues. And other houses.


Personally I would look for a house with an unfinished basement




LLC do not cost that much to maintain. Yearly annual registration is around 100$.

There is nothing anonymous in the purchase. The closing atty will need your ID

I guess if you can get all the docs, and learn how to do this inside and out, you can do it w/o an atty and not provide ID or just use fake ID.



You want the property titled to a land trust just to be 100% sure the mortgage company does not enact the due on sale clause. Also if own multiple houses, you want different entities owning each one

 

[SMOKE-ONE]

How does land trusts usually cost and how do I set one up?

 

[cody2white]

.

 

[turbolaser4528]

I really like this thread, more info please!


Theoretically its possible to own a house with $0 down, low monthly payments (700-1500), and not have any landlords, financial, or legal liabilities?!


I would try to get a fake id attached to the house, so God forbid the 5-0 come knocking you can avoid any legal recourse.


Further thoughts?

$0 money down and monthly payments $1000 or less would be ideal, is this possible?

 

[dtfsux]

I really like this thread, more info please!


Theoretically its possible to own a house with $0 down, low monthly payments (700-1500), and not have any landlords, financial, or legal liabilities?!


I would try to get a fake id attached to the house, so God forbid the 5-0 come knocking you can avoid any legal recourse.


Further thoughts?

$0 money down and monthly payments $1000 or less would be ideal, is this possible?

yes, but not likely


I picked up a house once where the owners had already bought another house and made a decision not to pay the mortgage anymore, but it was current. I took over the house, paid around 1500 in closing costs and then owned the house.

By the time you find sellers, they will already be in default and the lender has started foreclosure. In some areas the foreclosure timeline is very long so you could, throw up a flower room, and harvest before actual foreclosure, then catch up the arrears and keep growing. Other states it is very quick so you have to work things out quickly.


I would have a lawyer draw up the land trust. not sure of the cost

 

[McDanger]

I really like this thread, more info please!


Theoretically its possible to own a house with $0 down, low monthly payments (700-1500), and not have any landlords, financial, or legal liabilities?!


I would try to get a fake id attached to the house, so God forbid the 5-0 come knocking you can avoid any legal recourse.


Further thoughts?

$0 money down and monthly payments $1000 or less would be ideal, is this possible?

One thing to remember in the real estate biz...EVERYTHING IS NEGOTIABLE. Depending on the seller, you could easily get a house for $0 down and $1000/mo. I only have 1 property out of 12 that has a payment over 1k, but I am not buying expensive houses either. The term "no money down" only refers to your money, you could pay all cash as long as it is somebody else's cash and it is still considered a no money down deal.

 

[gettogro]

what happens if you buy the house and never make a payment to the bank. The bank starts foreclosure and the previous owner is still responsible for the payments. You could rent the house out and just pocket the rent payments. I know in Florida it takes 3 years to foreclose on a house. I still own one that I walked on 3 years ago. I filled bankruptcy 2 years ago so the loans were included in bankruptcy. But I am still listed as owner of the house according to the court house. I could have been collecting a nice rent check for the past three years. Hmmm. I live out west now but I could go back and mow the yard and stick up a for rent sigh.

Anyone wants a huge house in Fl with a 1800sw ft race car shop with a 200A service, Ill gladly sign over ownership for a fee. I hauled ass to a med state and could care less about it...

I wonder how that would work, I am already relieved from all debt responsibility from the banks.

BTW its about 300k upside down lol

 

[flyer]

thats what i am wondering about also.. if someone is so upside down on their house, you take over their payment brought the house for 300K and you can only sell it for 150k is it worth it? or what about if the owner is on a interest only loan? u would pay forever? or mortgage is over 2000 a month? what would you suggest in that situation?
just move in and do one grow and move out?

 

[turbolaser4528]

Yeah, thnx.

I search craigslist but all I see is rent to own, lease to own websites that require you to sign up for em to see the houses.

Where does one find these cheap houses with foreclosures?

 

[hgherbals420]

Heres some info that can help you- the main sources are bank websites, or foreclosure search engines.

http://homebuying.about.com/od/4closureshortsales/qt/112807_FindFrcl.htm

 

[dtfsux]

FORECLOSURES

Judicial: Some states require the lender to sue the borrower to foreclose. This can be a lengthy process with many steps to delay. Add these steps to the already backlogged court system, huge amount of foreclosures the lenders/attorneys are handling, and you can see why it takes months or years to foreclose.

To find these houses, you go to the county and you ask for the pending foreclosures or lis pendens. In big counties this may be available online, in electronic format etc. There are also companies that collect this data monthly and provide it to subscribers. usually these companies will cross reference the homes to MLS data and public records to give you more info on the property, such as value, equity etc. With the time frame given, you have quite a bit of time to work things out and make a deal.

Non-Judicial: Some states do not require the lender to sue you nor does the court system get involved until the day of sale. Once you are 30 days late, the lender has to notify you of their intent, then run an ad in the local paper for 4 weeks to advise the public of the intended sale.

To find these properties, you must look in the newspaper and get the addresses. In my area, a company does this and gives it to you in a nice electronic format online, cross referenced with public records to give you purchased price, date purchased, tax value, comps, and estimated value.

Remember with non-judicial foreclosures, the window is VERY small, as there is not much the borrower can do to stop or slow down the foreclosure except bankruptcy.




Great, so now you know where to find them. Now what? Well you can mail them or visit the houses and knock on the door. tell them you are interested in the house

Money down. The money down in this situation is going to be what the bank will take to stop foreclosure. If in one of those judicial states, you may have alot of time to come up with the money and stop foreclosure. But keep in mid the seller expects you to make it right so they are not going to keep defending the lawsuit and stalling for you


So you just bought a house for 400K that is worth 200k, Now what? The point of this is to get a house w/o much hassle, NO credit check or qualifying. It is not to make a profit on the house.

Exit strategy:
Walk away when done and let the bank foreclose

Short sale. Sell the house for less than what is owed. This is done ALL the time. The lender knows if they foreclose, they can sell the house for XX. They would rather skip the whole foreclosure process. But the short sale can not be to the current borrower or owner. So if you wanted to keep the house, you would have to have a friend/family member buy the house. Keep in mind the lender will get a BPO (broker price opinion). This is a real estate agent of their choosing who will give them a value on the property. This usually means them coming out and looking at the house so any grows would have to be taken down.




These deals are NOT on craigslist. The deals on craigslist are the ones that investors already found and then marketing to the public. Some of the deals on CL may be worthwhile if you do not want to do the homework.




Yes, you could have a house in foreclosure and rent it out

 

[Jeeyah]

Sounds good.
1.) Who's the company displaying the info online?
2.) In the foreclosure situation, is the house and mortgage listed under your name?interesting.

I hate banks.

 

[dtfsux]

Sounds good.
1.) Who's the company displaying the info online?
2.) In the foreclosure situation, is the house and mortgage listed under your name?interesting.

I hate banks.

The companies are going to be geographically focused. The company in my area only does this area, maybe 30-40 counties. www.equitydepot.net try googling pre foreclosure listings your state

You need to find sites that are geared towards investors. These will have the newest freshest info. A lot of the foreclosure sites have old info and no real way of contacting the owner.


Not sure of question 2? While the house is being foreclosed on, the borrower & mortgage info is listed in all reports, law suits, public notices etc

If you buy the house by taking over the loan as I have described, then the seller is still listed as the borrower. Any future foreclosure actions would be taken against them. The buyer (you) would be listed as the owner. The buyer/owner would probably be named in any foreclosure action as to notify you of the foreclosure and possible eviction etc but you would not be financially responsible

 

[amannamedtruth]

So good or bad thing to do this type of deal if the Trustee is paying into an adjustable interest rate loan?