All Forum Posts by: Dara Abasute

So I just had my first eviction case and won the judgement for my past due rent plus fees. I'm excited to get my property back but very concerned if I'll ever see the money that is owed. The tenant actually had most of the cash on hand in court but didn't have the fees. They also declined to continue to negotiate when I made it clear I wanted them out as well. In the long run it's better to just move on, but I still want my money. Are there any recommendations on what or who can help me? I don't know where they currently work because they were fired during the lease but I do have a SSN.

Thanks

 There ARE continuity of obligation rules that your subject to since you're considering a refinance and you're not Obligated on the current underlying mortgage (subject-to mortgage from seller).

The rule states that if you dont qualify for one of the rules under COB that your maximum LTV is limited to 50% LTV for all refinances within 24 months from the date of acquisition. You can cash out after 6 months from date of acquisition, but only up to the limited LTV restriction of 50%. Unless there is significant equity in the property 50% LTV may not be enough to payoff the current underlying mortgage.

Now here are the exceptions to lift the COB 50% limited LTV restriction:

- you inherit the property and it was transferred into your name either via legal award from a domestic partnership/marriage 

- you have been on title for 24 + months

- you took title to the property that was transferred from a partnership or partnership like entity (LLC, LP, etc) that you can document the ownership of 25% or more in

- you lived in the property and have been on title for atleast 12 months as a primary residence

- you have paid the mortgage for atleast 12 months 

- or you can demonstrate a relationship with the obligator (domestic partner, relative, family member, etc. )

If you qualify for one of the exceptions you are not limited to the 50% max LTV when considering fannie/freddie conventional cash out refinances on a subject to transaction. The most relevant exceptions are the last three above in bold.

Theres a lot of noise about the topic and its very confusing but the above are the actual rules atleast regarding conventional fannie/freddie financing. 

 Because of the cost of foreclosure many lien holders will just wait until the property sells then collect during that process.  If the buyer wants title insurance all the liens will be paid off then.

Hi @Dara Abasute! Congratulations on connecting with a seller who seems to really need some help!

First, let's talk short-sale: Not gonna happen! There's ZERO incentive for the lender to accept anything less than the full loan amount in this case. They'll foreclose long before they'll accept a short-sale.

Regarding sub-to, I would urge you not to attempt one without basic training and also excellent paperwork. The penalty for getting these deals wrong can be severe and career-ending!

Regarding the seller's request for $5K, just keep in mind that they have been living in this house for over a year and paying nothing toward the mortgage. And now they need money to move? Perhaps this deal could be done with a more reasonable amount paid to the seller. Just sayin'.