Comments on: Investors Working on Foreclosure Deals: Avoid Fraud Suspicion – Disclose! http://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/ Learn, Network, Invest Sun, 12 Feb 2012 02:59:04 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: CDBhttp://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-58556 CDB Tue, 22 Jul 2008 04:07:14 +0000 http://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-58556 The problem with this article, as it is very informative in explaining how to do good business, is it fails to address the underlying problem of why the homeowners are in foreclosure status in the first place.Typically homeowners are in foreclosure because for whatever reason, they simply can not make the payments anymore. In such a case, a shortsale is probably the best solution to get the homeowner freed from the mortgage, the loan of the books for the bank, and (hopefully) a hugely discounted property for the exit strategy of your choosing. The problem with this article, as it is very informative in explaining how to do good business, is it fails to address the underlying problem of why the homeowners are in foreclosure status in the first place.

Typically homeowners are in foreclosure because for whatever reason, they simply can not make the payments anymore. In such a case, a shortsale is probably the best solution to get the homeowner freed from the mortgage, the loan of the books for the bank, and (hopefully) a hugely discounted property for the exit strategy of your choosing.

]]> By: Real Estate Investment: December 15/07 Articles « Canadian Mortgage Advisors Networkhttp://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-58122 Real Estate Investment: December 15/07 Articles « Canadian Mortgage Advisors Network Fri, 04 Jul 2008 19:27:02 +0000 http://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-58122 [...] Dorkin presents Investors Working on Foreclosure Deals: Avoid Fraud Suspicion - Disclose! posted at Real Estate Investing For [...] [...] Dorkin presents Investors Working on Foreclosure Deals: Avoid Fraud Suspicion – Disclose! posted at Real Estate Investing For [...]

]]> By: Carnival of Real Estatehttp://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-57185 Carnival of Real Estate Mon, 02 Jun 2008 23:52:59 +0000 http://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-57185 [...] ‘Investors Working on Foreclosure Deals: Avoid Fraud Suspicion - Disclose!’ by Jim Watkins of BiggerPockets Blog [...] [...] ‘Investors Working on Foreclosure Deals: Avoid Fraud Suspicion – Disclose!’ by Jim Watkins of BiggerPockets Blog [...]

]]> By: Real Estate Investor Girlhttp://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-51942 Real Estate Investor Girl Wed, 31 Oct 2007 00:41:42 +0000 http://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-51942 Thanks for explaining. What gets sticky is when the tenants are over their troubles in a year or two, and forget how they were rescued by you, and were able to stay in their house. It leaves too much room for them to say they didn't understand the transaction. They will think they should still have ownership rights. Even with great contracts, and full disclosure, a sympathetic judge could rule in their favor. Things like that happen. Even though I try to help the homeowner in every way I can, I don't structure a deal like that, with the previous homeowners becoming renters in their home, because of the way it opens you up for being accused of fraud.Just my opinion, I am sure you are just trying to make it a win/win for all. Thanks for explaining. What gets sticky is when the tenants are over their troubles in a year or two, and forget how they were rescued by you, and were able to stay in their house. It leaves too much room for them to say they didn’t understand the transaction. They will think they should still have ownership rights. Even with great contracts, and full disclosure, a sympathetic judge could rule in their favor. Things like that happen. Even though I try to help the homeowner in every way I can, I don’t structure a deal like that, with the previous homeowners becoming renters in their home, because of the way it opens you up for being accused of fraud.

Just my opinion, I am sure you are just trying to make it a win/win for all.

]]> By: Cricket Videoshttp://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-51916 Cricket Videos Tue, 30 Oct 2007 06:03:15 +0000 http://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-51916 Yes fraud is a big problem. I know people who invested millions in a set of houses. Yet the developer went broke and they got absolutely nothing. Yes fraud is a big problem. I know people who invested millions in a set of houses. Yet the developer went broke and they got absolutely nothing.

]]> By: Jim Watkinshttp://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-51913 Jim Watkins Tue, 30 Oct 2007 04:41:35 +0000 http://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-51913 Rick, I didn't mean to imply that they don't ask questions. I was referring more to the homeowners who fall victim to fraud. You know the, "Sounds too good to be true" thing. Lease Options are so restricted in Texas now because of fraud. One case I heard about had a guy selling houses to people with a Lease Option. Collected the down payment & the works. Problem was.... He didn't own the houses! How many people would check title doing a rent-to-own?Investor Girl: It's not a re-finance. Its a new mortgage since the investor was never on the original mortgage. The homeowners would then become renters at their previous mortgage payment amount. Once the new mortgage is in place, the monthly cost to the investor drops and that creates instant cash flow. For the full scoop on structuring one of these deals... I invite you & the other readers to attend my 4-hour class in Dallas . Rick,
I didn’t mean to imply that they don’t ask questions. I was referring more to the homeowners who fall victim to fraud. You know the, “Sounds too good to be true” thing. Lease Options are so restricted in Texas now because of fraud. One case I heard about had a guy selling houses to people with a Lease Option. Collected the down payment & the works. Problem was…. He didn’t own the houses! How many people would check title doing a rent-to-own?

Investor Girl:
It’s not a re-finance. Its a new mortgage since the investor was never on the original mortgage. The homeowners would then become renters at their previous mortgage payment amount. Once the new mortgage is in place, the monthly cost to the investor drops and that creates instant cash flow. For the full scoop on structuring one of these deals… I invite you & the other readers to attend my 4-hour class in Dallas .

]]> By: Rick Marnon, Howellhttp://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-51909 Rick Marnon, Howell Tue, 30 Oct 2007 02:51:34 +0000 http://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-51909 I'm a little confused as to why people would sign their home over without asking some questions to verify whether or not somone can actually help them. This is similar to when I was looking for a renter, and a guy from out of the country was coming in for a year to work on a visa, and his company was going to pay for the rent. He sent a cashiers check and asked if I could send the ramining balance back. I constantly asked this guy questions to find out as much as I could but didn't get enough to be satisfied, so I thought it best to keep looking for another renter. I’m a little confused as to why people would sign their home over without asking some questions to verify whether or not somone can actually help them. This is similar to when I was looking for a renter, and a guy from out of the country was coming in for a year to work on a visa, and his company was going to pay for the rent. He sent a cashiers check and asked if I could send the ramining balance back. I constantly asked this guy questions to find out as much as I could but didn’t get enough to be satisfied, so I thought it best to keep looking for another renter.

]]> By: Trulia Blog » Carnival of Real Estatehttp://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-51902 Trulia Blog » Carnival of Real Estate Mon, 29 Oct 2007 21:02:27 +0000 http://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-51902 [...] ‘Investors Working on Foreclosure Deals: Avoid Fraud Suspicion - Disclose!’ by Jim Watkins of BiggerPockets Blog [...] [...] ‘Investors Working on Foreclosure Deals: Avoid Fraud Suspicion – Disclose!’ by Jim Watkins of BiggerPockets Blog [...]

]]> By: Austinhttp://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-51901 Austin Mon, 29 Oct 2007 20:35:29 +0000 http://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-51901 I have seen a few reports about people taking advantage of homeowners through deed transfers. I hate to see more regulation. But I wonder if there would be a way to transfer deeds from a homeowner to an investor where it was regulated by the state or through a title company. That way we could get rid of the shisters but at the same time allow legitimate investors help homeowners in trouble. I have seen a few reports about people taking advantage of homeowners through deed transfers. I hate to see more regulation. But I wonder if there would be a way to transfer deeds from a homeowner to an investor where it was regulated by the state or through a title company. That way we could get rid of the shisters but at the same time allow legitimate investors help homeowners in trouble.

]]> By: This Week’s Carnival of Real Estatehttp://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-51898 This Week’s Carnival of Real Estate Mon, 29 Oct 2007 17:49:19 +0000 http://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-51898 [...] Joshua Dorkin of the BiggerPockets blog with his thoughts on  Investors Working on Foreclosure Deals: Avoid Fraud Suspicion - Disclose! [...] [...] Joshua Dorkin of the BiggerPockets blog with his thoughts on  Investors Working on Foreclosure Deals: Avoid Fraud Suspicion – Disclose! [...]

]]> By: Arizona Mortgage Guru » 65th Carnival of Real Estate - Boo!http://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-51897 Arizona Mortgage Guru » 65th Carnival of Real Estate - Boo! Mon, 29 Oct 2007 17:26:37 +0000 http://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-51897 [...] 2: Joshua Dorkin takes the second slot with Investors Working on Foreclosure Deals: Avoid Fraud Suspicion - Disclose!, this is posted at Real Estate Investing For Real | A BiggerPockets [...] [...] 2: Joshua Dorkin takes the second slot with Investors Working on Foreclosure Deals: Avoid Fraud Suspicion – Disclose!, this is posted at Real Estate Investing For Real | A BiggerPockets [...]

]]> By: Real Estate Investor Girlhttp://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-51895 Real Estate Investor Girl Mon, 29 Oct 2007 13:30:18 +0000 http://www.biggerpockets.com/renewsblog/2007/10/27/investors-working-on-foreclosure-deals-avoid-fraud-suspicion-disclose/#comment-51895 "The homeowners get to stay in their house, they are not required to come up with extra money to do this and the past due balance is wiped clean. They are able to start fresh with their payments."You mentioned getting the mortgage re-financed within 120 days. But the homeowners stay in their house, and start fresh with their payments. Have you or the investor carried the note, as owner financing, or are the homeowners no longer homeowners, and now renters? Explain please. “The homeowners get to stay in their house, they are not required to come up with extra money to do this and the past due balance is wiped clean. They are able to start fresh with their payments.”

You mentioned getting the mortgage re-financed within 120 days. But the homeowners stay in their house, and start fresh with their payments. Have you or the investor carried the note, as owner financing, or are the homeowners no longer homeowners, and now renters? Explain please.

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