Due On Sale Being Called!!

Phoenix, Arizona
Creative Real Estate Financing
1yFollow

Due On Sale Being Called!!

Account Closed
Investor · Phoenix, AZ · Member since 2018 · 420 posts · 388 votes

I did a loan assumption that is currently a GIANT pain in the ***. I’m here to share my story for whatever that’s worth.

Over a year ago I did a wrap around mortgage on a place here in Phoenix at 3.5% over 27 years. Everything was smooth until it wasn’t. 6 months into it the tenant called and the toilet had failed in an upstairs bathroom. The house was flooded to the tune of $70,000 in repairs. 

No big deal, I worked with insurance and contractors to get the repairs done. Six months later my insurance dropped me and here is where it gets sticky. I got a new insurance policy at a higher rate. I let the original borrower know they needed to update the lender on the new insurance policy. 

The higher insurance premium required a higher escrow payment which the original borrower didn’t let me know.  A few months go by and unbeknownst to me the escrow account had now drawn negative which triggers the lender to no longer apply what’s considered a “partial” payment to them, given that I’m now paying less that what’s due given the escrow increase required but not relayed to me even though I expected it at some point.

Last month I’m on Zillow looking at the value of my properties. One of my properties says it’s going to auction in March because it’s being foreclosed on. My heart rate goes through the roof as I have about $90k in equity in that house. I reach out to the original borrower and ask them what’s going on. They weren’t paying attention to it, and why would they, it’s not their house anymore. 

They send over 3 months of notices from the bank. $10,000 has been collected by the lender and is in an “unapplied” status due to the short payments. They are foreclosing and are not open to discuss it. I call them, they won’t speak to me about the loan at all BECAUSE ITS NOT IN MY NAME. 

I have to sell it, but guess who has to request the payoff amount from the lender….thats right, the ORIGINAL borrower. So I am at the mercy of that person for basically EVERYTHING.

I am still waiting on that payoff amount 9 days later and am up against a clock where they have scheduled the home for sale at auction come March.

Take it all for what it's worth, I've learned plenty of lessons and made my share of mistakes. One thing is for sure, if I ever wrap another mortgage I am getting a POA to access the docs on the original loan so that I am never again at the mercy of that borrower to relay information. If it wasn't the insurance it would have been the property taxes. FFS

THE END. 

Let me know what you would have done differently?!



6Reply
291 views

Most Popular Reply

Adam Michael Andrews
Investor · Austin, TX · Member since 2017 · 107 posts · 89 votes
1y

Too bad this guy deleted his account. If we bite off people’s heads when they admit disaster, it suppresses legitimate issues with these techniques.

7Reply
See this reply in the discussion

43 Replies

Jump to latestLatest
  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    1y
    Quote from @Account Closed:

    I did a loan assumption that is currently a GIANT pain in the ***. I’m here to share my story for whatever that’s worth.

    Over a year ago I did a wrap around mortgage on a place here in Phoenix at 3.5% over 27 years. Everything was smooth until it wasn’t. 6 months into it the tenant called and the toilet had failed in an upstairs bathroom. The house was flooded to the tune of $70,000 in repairs. 

    No big deal, I worked with insurance and contractors to get the repairs done. Six months later my insurance dropped me and here is where it gets sticky. I got a new insurance policy at a higher rate. I let the original borrower know they needed to update the lender on the new insurance policy. 

    The higher insurance premium required a higher escrow payment which the original borrower didn’t let me know.  A few months go by and unbeknownst to me the escrow account had now drawn negative which triggers the lender to no longer apply what’s considered a “partial” payment to them, given that I’m now paying less that what’s due given the escrow increase required but not relayed to me even though I expected it at some point.

    Last month I’m on Zillow looking at the value of my properties. One of my properties says it’s going to auction in March because it’s being foreclosed on. My heart rate goes through the roof as I have about $90k in equity in that house. I reach out to the original borrower and ask them what’s going on. They weren’t paying attention to it, and why would they, it’s not their house anymore. 

    They send over 3 months of notices from the bank. $10,000 has been collected by the lender and is in an “unapplied” status due to the short payments. They are foreclosing and are not open to discuss it. I call them, they won’t speak to me about the loan at all BECAUSE ITS NOT IN MY NAME. 

    I have to sell it, but guess who has to request the payoff amount from the lender….thats right, the ORIGINAL borrower. So I am at the mercy of that person for basically EVERYTHING.

    I am still waiting on that payoff amount 9 days later and am up against a clock where they have scheduled the home for sale at auction come March.

    Take it all for what it's worth, I've learned plenty of lessons and made my share of mistakes. One thing is for sure, if I ever wrap another mortgage I am getting a POA to access the docs on the original loan so that I am never again at the mercy of that borrower to relay information. If it wasn't the insurance it would have been the property taxes. FFS

    THE END. 

    Let me know what you would have done differently?!



    Quick question, which Guru did you learn SubTo from?
    3Reply
  • Account Closed
    OP
    Investor · Phoenix, AZ · Member since 2018 · 420 posts · 388 votes
    1y
    Quote from @Ken M.:
    Quote from @Account Closed:

    I did a loan assumption that is currently a GIANT pain in the ***. I’m here to share my story for whatever that’s worth.

    Over a year ago I did a wrap around mortgage on a place here in Phoenix at 3.5% over 27 years. Everything was smooth until it wasn’t. 6 months into it the tenant called and the toilet had failed in an upstairs bathroom. The house was flooded to the tune of $70,000 in repairs. 

    No big deal, I worked with insurance and contractors to get the repairs done. Six months later my insurance dropped me and here is where it gets sticky. I got a new insurance policy at a higher rate. I let the original borrower know they needed to update the lender on the new insurance policy. 

    The higher insurance premium required a higher escrow payment which the original borrower didn’t let me know.  A few months go by and unbeknownst to me the escrow account had now drawn negative which triggers the lender to no longer apply what’s considered a “partial” payment to them, given that I’m now paying less that what’s due given the escrow increase required but not relayed to me even though I expected it at some point.

    Last month I’m on Zillow looking at the value of my properties. One of my properties says it’s going to auction in March because it’s being foreclosed on. My heart rate goes through the roof as I have about $90k in equity in that house. I reach out to the original borrower and ask them what’s going on. They weren’t paying attention to it, and why would they, it’s not their house anymore. 

    They send over 3 months of notices from the bank. $10,000 has been collected by the lender and is in an “unapplied” status due to the short payments. They are foreclosing and are not open to discuss it. I call them, they won’t speak to me about the loan at all BECAUSE ITS NOT IN MY NAME. 

    I have to sell it, but guess who has to request the payoff amount from the lender….thats right, the ORIGINAL borrower. So I am at the mercy of that person for basically EVERYTHING.

    I am still waiting on that payoff amount 9 days later and am up against a clock where they have scheduled the home for sale at auction come March.

    Take it all for what it's worth, I've learned plenty of lessons and made my share of mistakes. One thing is for sure, if I ever wrap another mortgage I am getting a POA to access the docs on the original loan so that I am never again at the mercy of that borrower to relay information. If it wasn't the insurance it would have been the property taxes. FFS

    THE END. 

    Let me know what you would have done differently?!



    Quick question, which Guru did you learn SubTo from?
    I didn’t learn it from a guru. I read about it in several different places. It’s not rocket science. There are risks and rewards like anything else in life. 
    2Reply
  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    1y

    Wow!  I feel for you. Thanks for sharing to help others. Keep us updated. 

    0Reply
  • Michael K GallagherBusiness Member
    Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
    1y
    Quote from @Account Closed:

    I did a loan assumption that is currently a GIANT pain in the ***. I’m here to share my story for whatever that’s worth.

    Over a year ago I did a wrap around mortgage on a place here in Phoenix at 3.5% over 27 years. Everything was smooth until it wasn’t. 6 months into it the tenant called and the toilet had failed in an upstairs bathroom. The house was flooded to the tune of $70,000 in repairs. 

    No big deal, I worked with insurance and contractors to get the repairs done. Six months later my insurance dropped me and here is where it gets sticky. I got a new insurance policy at a higher rate. I let the original borrower know they needed to update the lender on the new insurance policy. 

    The higher insurance premium required a higher escrow payment which the original borrower didn’t let me know.  A few months go by and unbeknownst to me the escrow account had now drawn negative which triggers the lender to no longer apply what’s considered a “partial” payment to them, given that I’m now paying less that what’s due given the escrow increase required but not relayed to me even though I expected it at some point.

    Last month I’m on Zillow looking at the value of my properties. One of my properties says it’s going to auction in March because it’s being foreclosed on. My heart rate goes through the roof as I have about $90k in equity in that house. I reach out to the original borrower and ask them what’s going on. They weren’t paying attention to it, and why would they, it’s not their house anymore. 

    They send over 3 months of notices from the bank. $10,000 has been collected by the lender and is in an “unapplied” status due to the short payments. They are foreclosing and are not open to discuss it. I call them, they won’t speak to me about the loan at all BECAUSE ITS NOT IN MY NAME. 

    I have to sell it, but guess who has to request the payoff amount from the lender….thats right, the ORIGINAL borrower. So I am at the mercy of that person for basically EVERYTHING.

    I am still waiting on that payoff amount 9 days later and am up against a clock where they have scheduled the home for sale at auction come March.

    Take it all for what it's worth, I've learned plenty of lessons and made my share of mistakes. One thing is for sure, if I ever wrap another mortgage I am getting a POA to access the docs on the original loan so that I am never again at the mercy of that borrower to relay information. If it wasn't the insurance it would have been the property taxes. FFS

    THE END. 

    Let me know what you would have done differently?!




    Thanks for sharing, the POA to access the original docs is a great idea, and I'm totally stealing it for the future. also curious if its best practices when assuming a loan to forgo the escrow and just pay the taxes and ins out of pocket when needed....but perhaps that triggers something else? just spit ballin here.

    [email protected]614-362-2231
    0Reply
  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    1y
    Quote from @Account Closed:
    Quote from @Ken M.:
    Quote from @Account Closed:

    I did a loan assumption that is currently a GIANT pain in the ***. I’m here to share my story for whatever that’s worth.

    Over a year ago I did a wrap around mortgage on a place here in Phoenix at 3.5% over 27 years. Everything was smooth until it wasn’t. 6 months into it the tenant called and the toilet had failed in an upstairs bathroom. The house was flooded to the tune of $70,000 in repairs. 

    No big deal, I worked with insurance and contractors to get the repairs done. Six months later my insurance dropped me and here is where it gets sticky. I got a new insurance policy at a higher rate. I let the original borrower know they needed to update the lender on the new insurance policy. 

    The higher insurance premium required a higher escrow payment which the original borrower didn’t let me know.  A few months go by and unbeknownst to me the escrow account had now drawn negative which triggers the lender to no longer apply what’s considered a “partial” payment to them, given that I’m now paying less that what’s due given the escrow increase required but not relayed to me even though I expected it at some point.

    Last month I’m on Zillow looking at the value of my properties. One of my properties says it’s going to auction in March because it’s being foreclosed on. My heart rate goes through the roof as I have about $90k in equity in that house. I reach out to the original borrower and ask them what’s going on. They weren’t paying attention to it, and why would they, it’s not their house anymore. 

    They send over 3 months of notices from the bank. $10,000 has been collected by the lender and is in an “unapplied” status due to the short payments. They are foreclosing and are not open to discuss it. I call them, they won’t speak to me about the loan at all BECAUSE ITS NOT IN MY NAME. 

    I have to sell it, but guess who has to request the payoff amount from the lender….thats right, the ORIGINAL borrower. So I am at the mercy of that person for basically EVERYTHING.

    I am still waiting on that payoff amount 9 days later and am up against a clock where they have scheduled the home for sale at auction come March.

    Take it all for what it's worth, I've learned plenty of lessons and made my share of mistakes. One thing is for sure, if I ever wrap another mortgage I am getting a POA to access the docs on the original loan so that I am never again at the mercy of that borrower to relay information. If it wasn't the insurance it would have been the property taxes. FFS

    THE END. 

    Let me know what you would have done differently?!



    Quick question, which Guru did you learn SubTo from?
    I didn’t learn it from a guru. I read about it in several different places. It’s not rocket science. There are risks and rewards like anything else in life. 
    It's not rocket science. Lol

    Says he "I did a loan assumption that is currently a GIANT pain in the ***."

    3Reply
    • Ken M.
      Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
      1y
      Quote from @Ken M.:
      Quote from @Account Closed:
      Quote from @Ken M.:
      Quote from @Account Closed:

      I did a loan assumption that is currently a GIANT pain in the ***. I’m here to share my story for whatever that’s worth.

      Over a year ago I did a wrap around mortgage on a place here in Phoenix at 3.5% over 27 years. Everything was smooth until it wasn’t. 6 months into it the tenant called and the toilet had failed in an upstairs bathroom. The house was flooded to the tune of $70,000 in repairs. 

      No big deal, I worked with insurance and contractors to get the repairs done. Six months later my insurance dropped me and here is where it gets sticky. I got a new insurance policy at a higher rate. I let the original borrower know they needed to update the lender on the new insurance policy. 

      The higher insurance premium required a higher escrow payment which the original borrower didn’t let me know.  A few months go by and unbeknownst to me the escrow account had now drawn negative which triggers the lender to no longer apply what’s considered a “partial” payment to them, given that I’m now paying less that what’s due given the escrow increase required but not relayed to me even though I expected it at some point.

      Last month I’m on Zillow looking at the value of my properties. One of my properties says it’s going to auction in March because it’s being foreclosed on. My heart rate goes through the roof as I have about $90k in equity in that house. I reach out to the original borrower and ask them what’s going on. They weren’t paying attention to it, and why would they, it’s not their house anymore. 

      They send over 3 months of notices from the bank. $10,000 has been collected by the lender and is in an “unapplied” status due to the short payments. They are foreclosing and are not open to discuss it. I call them, they won’t speak to me about the loan at all BECAUSE ITS NOT IN MY NAME. 

      I have to sell it, but guess who has to request the payoff amount from the lender….thats right, the ORIGINAL borrower. So I am at the mercy of that person for basically EVERYTHING.

      I am still waiting on that payoff amount 9 days later and am up against a clock where they have scheduled the home for sale at auction come March.

      Take it all for what it's worth, I've learned plenty of lessons and made my share of mistakes. One thing is for sure, if I ever wrap another mortgage I am getting a POA to access the docs on the original loan so that I am never again at the mercy of that borrower to relay information. If it wasn't the insurance it would have been the property taxes. FFS

      THE END. 

      Let me know what you would have done differently?!



      Quick question, which Guru did you learn SubTo from?
      I didn’t learn it from a guru. I read about it in several different places. It’s not rocket science. There are risks and rewards like anything else in life. 
      It's not rocket science. Lol

      Says he "I did a loan assumption that is currently a GIANT pain in the ***."

      HIs comments: 

      It's not rocket science. Lol

      Says he "I did a loan assumption that is currently a GIANT pain in the ***.

      I STILL find this rather amusing. Shame on me. 

      I don't know how many times that is being said these days but boy, it's a lot!

      0Reply
  • Ram Gonzales
    Investor · San Antonio, TX · Member since 2009 · 106 posts · 50 votes
    1y

    Yes, always do a POA. Also, get all personal info (DOB, SSN) from the seller in case needed when talking to lenders, lienholders, etc. Finally, always get the credentials to access the mortgage account online and change the email notifications to your address. Bottom line, make it so that you never need the seller again after the transaction is closed.

    4Reply
  • Account Closed
    OP
    Investor · Phoenix, AZ · Member since 2018 · 420 posts · 388 votes
    1y
    Quote from @Ken M.:
    Quote from @Account Closed:
    Quote from @Ken M.:
    Quote from @Account Closed:

    I did a loan assumption that is currently a GIANT pain in the ***. I’m here to share my story for whatever that’s worth.

    Over a year ago I did a wrap around mortgage on a place here in Phoenix at 3.5% over 27 years. Everything was smooth until it wasn’t. 6 months into it the tenant called and the toilet had failed in an upstairs bathroom. The house was flooded to the tune of $70,000 in repairs. 

    No big deal, I worked with insurance and contractors to get the repairs done. Six months later my insurance dropped me and here is where it gets sticky. I got a new insurance policy at a higher rate. I let the original borrower know they needed to update the lender on the new insurance policy. 

    The higher insurance premium required a higher escrow payment which the original borrower didn’t let me know.  A few months go by and unbeknownst to me the escrow account had now drawn negative which triggers the lender to no longer apply what’s considered a “partial” payment to them, given that I’m now paying less that what’s due given the escrow increase required but not relayed to me even though I expected it at some point.

    Last month I’m on Zillow looking at the value of my properties. One of my properties says it’s going to auction in March because it’s being foreclosed on. My heart rate goes through the roof as I have about $90k in equity in that house. I reach out to the original borrower and ask them what’s going on. They weren’t paying attention to it, and why would they, it’s not their house anymore. 

    They send over 3 months of notices from the bank. $10,000 has been collected by the lender and is in an “unapplied” status due to the short payments. They are foreclosing and are not open to discuss it. I call them, they won’t speak to me about the loan at all BECAUSE ITS NOT IN MY NAME. 

    I have to sell it, but guess who has to request the payoff amount from the lender….thats right, the ORIGINAL borrower. So I am at the mercy of that person for basically EVERYTHING.

    I am still waiting on that payoff amount 9 days later and am up against a clock where they have scheduled the home for sale at auction come March.

    Take it all for what it's worth, I've learned plenty of lessons and made my share of mistakes. One thing is for sure, if I ever wrap another mortgage I am getting a POA to access the docs on the original loan so that I am never again at the mercy of that borrower to relay information. If it wasn't the insurance it would have been the property taxes. FFS

    THE END. 

    Let me know what you would have done differently?!



    Quick question, which Guru did you learn SubTo from?
    I didn’t learn it from a guru. I read about it in several different places. It’s not rocket science. There are risks and rewards like anything else in life. 
    It's not rocket science. Lol

    Says he "I did a loan assumption that is currently a GIANT pain in the ***."

    Something being difficult doesn't mean it take a genius to make it work. I can't say the same for rockets. I am not afraid to try things and make mistakes...and that's on par with every inventor in the history of man kind, sir. When I sell it I will be back at square one, no harm no foul.

    And I do mean WHEN I sell it.
    0Reply
  • Account Closed
    OP
    Investor · Phoenix, AZ · Member since 2018 · 420 posts · 388 votes
    1y
    Quote from @Michael K Gallagher:
    Quote from @Account Closed:

    I did a loan assumption that is currently a GIANT pain in the ***. I’m here to share my story for whatever that’s worth.

    Over a year ago I did a wrap around mortgage on a place here in Phoenix at 3.5% over 27 years. Everything was smooth until it wasn’t. 6 months into it the tenant called and the toilet had failed in an upstairs bathroom. The house was flooded to the tune of $70,000 in repairs. 

    No big deal, I worked with insurance and contractors to get the repairs done. Six months later my insurance dropped me and here is where it gets sticky. I got a new insurance policy at a higher rate. I let the original borrower know they needed to update the lender on the new insurance policy. 

    The higher insurance premium required a higher escrow payment which the original borrower didn’t let me know.  A few months go by and unbeknownst to me the escrow account had now drawn negative which triggers the lender to no longer apply what’s considered a “partial” payment to them, given that I’m now paying less that what’s due given the escrow increase required but not relayed to me even though I expected it at some point.

    Last month I’m on Zillow looking at the value of my properties. One of my properties says it’s going to auction in March because it’s being foreclosed on. My heart rate goes through the roof as I have about $90k in equity in that house. I reach out to the original borrower and ask them what’s going on. They weren’t paying attention to it, and why would they, it’s not their house anymore. 

    They send over 3 months of notices from the bank. $10,000 has been collected by the lender and is in an “unapplied” status due to the short payments. They are foreclosing and are not open to discuss it. I call them, they won’t speak to me about the loan at all BECAUSE ITS NOT IN MY NAME. 

    I have to sell it, but guess who has to request the payoff amount from the lender….thats right, the ORIGINAL borrower. So I am at the mercy of that person for basically EVERYTHING.

    I am still waiting on that payoff amount 9 days later and am up against a clock where they have scheduled the home for sale at auction come March.

    Take it all for what it's worth, I've learned plenty of lessons and made my share of mistakes. One thing is for sure, if I ever wrap another mortgage I am getting a POA to access the docs on the original loan so that I am never again at the mercy of that borrower to relay information. If it wasn't the insurance it would have been the property taxes. FFS

    THE END. 

    Let me know what you would have done differently?!




    Thanks for sharing, the POA to access the original docs is a great idea, and I'm totally stealing it for the future. also curious if its best practices when assuming a loan to forgo the escrow and just pay the taxes and ins out of pocket when needed....but perhaps that triggers something else? just spit ballin here.


    I assume that because the underlying note still escrows taxes and insurance that I would still need to make that payment in full so as not to be "short". My downfall here was relying on someone else with no vested interest to relay information, and that will never happen again! Live and learn!

    4Reply
  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    1y
    Quote from @Michael K Gallagher:
    Quote from @Account Closed:

    I did a loan assumption that is currently a GIANT pain in the ***. I’m here to share my story for whatever that’s worth.

    Over a year ago I did a wrap around mortgage on a place here in Phoenix at 3.5% over 27 years. Everything was smooth until it wasn’t. 6 months into it the tenant called and the toilet had failed in an upstairs bathroom. The house was flooded to the tune of $70,000 in repairs. 

    No big deal, I worked with insurance and contractors to get the repairs done. Six months later my insurance dropped me and here is where it gets sticky. I got a new insurance policy at a higher rate. I let the original borrower know they needed to update the lender on the new insurance policy. 

    The higher insurance premium required a higher escrow payment which the original borrower didn’t let me know.  A few months go by and unbeknownst to me the escrow account had now drawn negative which triggers the lender to no longer apply what’s considered a “partial” payment to them, given that I’m now paying less that what’s due given the escrow increase required but not relayed to me even though I expected it at some point.

    Last month I’m on Zillow looking at the value of my properties. One of my properties says it’s going to auction in March because it’s being foreclosed on. My heart rate goes through the roof as I have about $90k in equity in that house. I reach out to the original borrower and ask them what’s going on. They weren’t paying attention to it, and why would they, it’s not their house anymore. 

    They send over 3 months of notices from the bank. $10,000 has been collected by the lender and is in an “unapplied” status due to the short payments. They are foreclosing and are not open to discuss it. I call them, they won’t speak to me about the loan at all BECAUSE ITS NOT IN MY NAME. 

    I have to sell it, but guess who has to request the payoff amount from the lender….thats right, the ORIGINAL borrower. So I am at the mercy of that person for basically EVERYTHING.

    I am still waiting on that payoff amount 9 days later and am up against a clock where they have scheduled the home for sale at auction come March.

    Take it all for what it's worth, I've learned plenty of lessons and made my share of mistakes. One thing is for sure, if I ever wrap another mortgage I am getting a POA to access the docs on the original loan so that I am never again at the mercy of that borrower to relay information. If it wasn't the insurance it would have been the property taxes. FFS

    THE END. 

    Let me know what you would have done differently?!




    Thanks for sharing, the POA to access the original docs is a great idea, and I'm totally stealing it for the future. also curious if its best practices when assuming a loan to forgo the escrow and just pay the taxes and ins out of pocket when needed....but perhaps that triggers something else? just spit ballin here.

    .

    "just spit ballin here."  Very funny. You're like the boat builder who doesn't know to seal the planks. Lol

    I've said enough. Oh, the surprises that await you. ;-)




    0Reply
  • David F.
    Member since 2018 · 113 posts · 136 votes
    1y

    This was not a loan assumption as described in OP’s post. It is subject to. Very important detail.

    3Reply
  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    1y
    Quote from @David F.:

    This was not a loan assumption as described in OP’s post. It is subject to. Very important detail.


     Exactly. And he's been here before bragging what he's been doing in previous posts, the chickens come home to roost. Always.

    1Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    1y

    I am having trouble following you can always send the money to an insurance company.  Did the insurance get cancelled in this case. 

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y
    Quote from @V.G Jason:
    Quote from @David F.:

    This was not a loan assumption as described in OP’s post. It is subject to. Very important detail.


     Exactly. And he's been here before bragging what he's been doing in previous posts, the chickens come home to roost. Always.


     interesting plot twist as more carriers cancel and people need to get new policies and see the original borrower is not on the policy etc will the servicers be telling the lenders to call the loan.

    7e investments53 Reviews
    WebsiteView Page
    5Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    1y

    I wonder why he cancelled his account?

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    4Reply
  • Steve K.
    Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    1y

    This reminds me of a thread from about a year ago... https://www.biggerpockets.com/forums/50/topics/1139756-do-yo...

    Hope it works out for everyone though. 

    0Reply
  • Steve K.
    Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    1y

    I would never give the party on the opposite end of the transaction POA over the property, or my social, DOB etc. Who would do that?

    People doing crazy stuff lately.

    I hate to say it but it's starting to feel a bit like 2007, with sub2 being the new subprime mortgage...

    6Reply
  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    1y
    Quote from @Steve K.:

    I would never give the party on the opposite end of the transaction POA over the property, or my social, DOB etc. Who would do that?

    People doing crazy stuff lately.

    I hate to say it but it's starting to feel a bit like 2007, with sub2 being the new subprime mortgage...

    It's too small of a percentage of loans for that to be where the bottom falls out. And yes that poster has a trail of his own.

    3Reply
  • Steve K.
    Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    1y
    Quote from @V.G Jason:
    Quote from @Steve K.:

    I would never give the party on the opposite end of the transaction POA over the property, or my social, DOB etc. Who would do that?

    People doing crazy stuff lately.

    I hate to say it but it's starting to feel a bit like 2007, with sub2 being the new subprime mortgage...

    It's too small of a percentage of loans for that to be where the bottom falls out. And yes that poster has a trail of his own. @Russell Brazil He closed his account, cause he needs to eat a lot of crow. 


     Yeah good point. It's not like we're bundling sub2 deals into tranches and selling them as mortgage-backed securities like they were with subprime mortgages, yet. 

    0Reply
  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    1y

    Yeah I would never give my ss or any of that info out. These subject to strategies all seem to risk doing something illegal, not my style or a strategy I would call sustainable. Just do a normal full loan assumption if your qualified and if your not qualified go for dscr loans even if rates higher. 

    2Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y
    Quote from @V.G Jason:
    Quote from @Steve K.:

    I would never give the party on the opposite end of the transaction POA over the property, or my social, DOB etc. Who would do that?

    People doing crazy stuff lately.

    I hate to say it but it's starting to feel a bit like 2007, with sub2 being the new subprime mortgage...

    It's too small of a percentage of loans for that to be where the bottom falls out. And yes that poster has a trail of his own. 

     who was it?

    7e investments53 Reviews
    WebsiteView Page
    0Reply
  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    1y
    Quote from @Chris Seveney:
    Quote from @V.G Jason:
    Quote from @Steve K.:

    I would never give the party on the opposite end of the transaction POA over the property, or my social, DOB etc. Who would do that?

    People doing crazy stuff lately.

    I hate to say it but it's starting to feel a bit like 2007, with sub2 being the new subprime mortgage...

    It's too small of a percentage of loans for that to be where the bottom falls out. And yes that poster has a trail of his own. @Russell Brazil He closed his account, cause he needs to eat a lot of crow. 


     who was it?

    I would have thought as a mod, you'd have access to that information. ?
    Maybe he was actually made a "non-person". ;-)
    0Reply
    • Chris SeveneyBusiness Member
      Moderator
      Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
      1y

      @Ken M. 
      Moderators are not employees or paid by BP.

      we can remove posts and flag posts - that  is the much to the extent of what we can do - we don't have any type of access to someone's accounts. 

      7e investments53 Reviews
      WebsiteView Page
      1Reply
  • Dan DeppenBusiness Member
    Erie, CO · Member since 2017 · 274 posts · 267 votes
    1y

    I could be misunderstanding how this deal was structured, but wouldn't the seller who is on the underlying mortgage have an incentive not to let it go into foreclosure since their credit is at stake?

    0Reply
  • Jules Aton
    MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    1y
    Quote from @Steve K.:

    I would never give the party on the opposite end of the transaction POA over the property, or my social, DOB etc. Who would do that?

    People doing crazy stuff lately.

    I hate to say it but it's starting to feel a bit like 2007, with sub2 being the new subprime mortgage...

    Agree about the 2007 feel. I'm new here so may not have a full view but the overall climate seems to be
    -anything to make a deal-ridiculous financing, leverage the home you life in
    -who cares where it is located it will be easy to rent/manage from hours away
    -don't be gracious with your tenants and housekeepers
    My guess is a tilt toward young and not financially stable which is awesome if remaining sensible. I haven't ever found an easy money scheme and in my experience when everyone and their uncle starts jumping on the bandwagon it might be time to take a step back and wait for the correction. 

    2Reply
  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    1y
    Quote from @Ken M.:
    Quote from @Chris Seveney:
    Quote from @V.G Jason:
    Quote from @Steve K.:

    I would never give the party on the opposite end of the transaction POA over the property, or my social, DOB etc. Who would do that?

    People doing crazy stuff lately.

    I hate to say it but it's starting to feel a bit like 2007, with sub2 being the new subprime mortgage...

    It's too small of a percentage of loans for that to be where the bottom falls out. And yes that poster has a trail of his own. @Russell Brazil He closed his account, cause he needs to eat a lot of crow. 


     who was it?

    I would have thought as a mod, you'd have access to that information. ?
    Maybe he was actually made a "non-person". ;-)

     Clearly, he doesn't cause you're the same subto guy that's been peddling the forum for the last couple of years. "Teaching" people how to do subto for $1500/mo or something like that. Perhaps longer time you've been here, I do not know. Removed and come back, or of the sort.



    @Chris Seveney Poster's name was Whit B.

    2Reply
  • Adam Michael Andrews
    Investor · Austin, TX · Member since 2017 · 107 posts · 89 votes
    1y

    Too bad this guy deleted his account. If we bite off people’s heads when they admit disaster, it suppresses legitimate issues with these techniques.

    7Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free