All Forum Posts by: Caroline Gerardo

The mobile homes if prior to 1976, not on permitted foundation with 433A filed will be given zero value. Some loan products like VA and FHA may require you to remove them or provide septic/electric/foundation inspections and bring to code which you won't want to do. If buyer goes NONQM or Conventional with a BIG down payment to overcome the issue that the extra units have no value or perhaps negative value you may be able to get around the inspections- I don't know where this is, how they appear, or condition.

Clean up, paint and get the front landscaping looking good and sell to a cash buyer. Disclose that you don't know about the foundations, model type or permits and let the buyer buy "as is" - there really isn't an as is in many states... 

Filing for bankruptcy makes the mortgage not assumable. To be assumable lender requires loan to be current and not tied into BK. You have to get court approval to sell or have you assume Any non arms length transaction (sold to family) is going to be disputed. Also the BK court will do their own appraisal and likely come higher than you think. Assumption is full documentation with two years of your IRS return net and all the 100 other papers. Assumption takes 90 days, this is not a plan.

You need a huge down payment to make the difference between loan of $200000 and sales price $650000.

I like the idea of a reverse mortgage. His social security or income can be used to offset the tax and insurance BUT the house has to be in good condition to meet FHA rules. Is there well and septic they will require inspections... You need a solid roof, and that costs $15000 minimum...

If you could qualify for a USDA purchase loan you don't need as much cash for closing and no down payment needed. There are grants to help with the closing costs. Property again needs to meet health and safety codes. I think USDA is the best option look in the map and see if address fits. Here is the link https://eligibility.sc.egov.usda.gov/eligibility/welcomeActi...   Then if you have the income on your IRS taxes offer him a LIFE ESTATE to stay until his death, thus giving you the responsibility to make payments and he pays nothing. Are there other siblings or heirs? You brother or sister will balk at this and say: just sell it and give Dad the total proceeds. 

If you have siblings are they willing to co-sign IF THEY have INCOME what is net number on IRS?

If he files Bankruptcy he has a year-ish to wipe out credit card debt but the court may force him to sell the house to pay off the debt. Bankruptcy takes away choices and puts it in the court or a funky attorney's hands. Imagine an auction, it will break his heart. I assume the house is his sole asset. If he filed a homestead (file it now) it gives him $125,000 of equity in his primary residence through the homestead exemption but the court will have an outside appraisal that says the house is worth $700000 and he owes $200000 - this number will increase as a year of non payment and legal fees gets tacked on. $700000- $125000 -270000 or more = leaves about $300000 - $10000 for personal property. He gets $135000. The remainder net proceeds will get divided up among the creditors- cards, vehicle loans, liens, medical bills.. 

If you don't have the income on taxes or someone to co-sign. Sell before he files bankruptcy. If he already filed, you can un-file it. 

DSCR cannot be bundled. Hard money will bundle them, but no savings there. If someone cross collateralizes or bundles they DO NOT release one for free if you want to sell one.

RURAL - do you mean on acreage more than 10? Population of city less than 20000? BIG problem you will have with lending is having comparable sales. Duplexes tend to be less of the total number of unit types in any location. If there are no comparable sales in past three months with a conventional type loan nearby the appraisal will be a struggle. 

Other problem with low density/low number of units to compare is lenders require a rental survey by the appraiser which has to be greater than your rental agreements. If there are few rentals the survey is hard to verify the rents... long term rents are what is used. With $125000 sale price and 20% down the PITI is about $950.

GET A QUOTE ON Hazard Insurance- rural may be a struggle.

So if the property has 3 comps and can cash flow rates today are in the 7-8 range for 30 year fixed APR 8.119- 8.411 depends on your FICO score and the DSCR number.

@Rick Albert loan officers make between .25- 1% on loan amount there is no larger commission in this case. A $100000 loan is not making anyone fat. We are regulated to not be able to flex our commission. The bulk of the costs are all the many vendors: appraisal $700 underwriting/processing $1000 settlement $500-600 title -guess not knowing location $400-600 notary $200 recording $50-100 transfer tax unknown $ varies greatly $40 CPL $70 wire   then points or a prepay

#syndication 

 #syndication 

1. The note must state it is assumable. Many FHA and VA loans are. BUT it's not favorable for a veteran on a VA to lose some legibility to ever do one again.

2. Seller has to agree and cooperate. Seller has to be current and no lates - some notes say 12 months some longer. So if they did forbearance you need to investigate BEFORE you bother.

3. You will deal with servicer who has no money or motivation to hustle. Assume it takes 90 days. Full documentation. You have to qualify with the standards that were in place: FICO number required; debt to income ratio same or better... IRS taxes 2 years, w-2 right now because we are before 2023 return due 3 years, paystubs 30 days, mortgage bills, fire insurance and HOA bills, bank statements past 60 days. Hardest part is you need the liquid cash down payment. All the papers go in ONE Email with purchase contract, preliminary title, settlement sheets to the servicer. Note on the email subject the loan number and assumption. Then check with them that they got every piece of paper, this is not the fun part, loan officers love papers but servicers seem to struggle. There is no loan officer to follow up. FOR a VA there are many forms seller has to sign to agree.

4. You get approved - escrow/settlement whatever you use in whatever state notarizes everything it goes to servicer, it doesn't table fund and record same day...

@Jason Potrzeba no you do not assume their payment history. Go back to #2 they must be current and can't have recent late payments. If they have one 15 day the servicer might grant you grace, get it in writing.

 Mike does not you Shafi.  

 @Paul Merriwether  did you read all the citations on my link- lots of legal opinions from Franchise Tax, State CA, etc - Prop 19 is regarding the child wants to keep the house, moves in and property tax stays same but can be increased annually.  I'm talking about when you die, vesting in Living Trust allows stepped up basis to heirs based on the current value and you sell- this is about INCOME tax not property tax

@Shafi Noss read some of Mike's older posts regarding deceiving to your mortgage servicer. Those plans are not going to end well.

@Christie Gahan  if you can only recover $4500 - $12000 in small claims depending on the state where property sits then paying an attorney $10000 to appear isn't going to be worth the juice from the squeeze. Many states do not allow attorney in small claims.