Hypothetical

[Chris Seveney]

Hypothetical situation: If someone had a property worth $100k, and owed $50k on it but fell into hardship and missed payments where had could go into foreclosure and had payments in arrears but got back on there feet. Could someone come in and pay off there first mortgage and act as a private lender for the deal and hold the first note. With Dodd-frank I would think would be very regulated and restricted but then again I see note investors buying performing and non performing notes and modifying them Is there a difference between creating a note and modifying an existing, especially when you are not the current owner and selling / transferring the property ?

[Brett Goldsmith]

Lending on primary residences is extremely regulated. Beware! Usury laws, disclosures, and the list goes on...

Most private lenders stick to investment property's.

Hope this helps!