All Forum Posts by: Davon Lowery

Zillow confirms it. I know I know, it is not a true amount but its all we have at this point. I didn't advise the seller to get a BPA or have an agent execute a CMA, I decided to do a little research before saying anything else.

Seller didn't say that substantial upgrades were made to the property either. Most often sellers like to mention the new A/C unit or the floors they just had done or that the roof is only 5 years old etc.

 You know Anthony, I didn't ask. You can imagine my head was spinning when I heard how upside-down the seller is. But the seller said that it was the same mortgage from 2008.

 Thank you No no you've got the wheels to turning and this is exactly how problems are solved. But, I'm not interested in the deal, I would much rather help the seller the best I can, maybe I can pass it along; you know pay it forward.

@Michaela G. That is interesting; but, what would the incentive for the tenant to accept the property at a price double of what market value currently is? 

So, if she were to quick claim the property deed to reflect joint tenancy then that may thwart the HOAs' efforts?

So, I get a hit from a motivated seller from Lithonia, GA. 

The property is a 1,300 sqft. 3 bd 2 ba SFR with a community HOA.

After nearly 10 years, they decided to enforce a policy that stipulates, that the properties need to be owner occupied; moreover, only 25% of the homes covered by the HOA's authority may be non-owner occupied. The HOA is demanding that she evict her tenant and occupy her property, sell her property, or loose it to legal action for being in breach of contract.

I asked the seller how much did she think her property was worth, she said $40k, I asked how much did she owe, she said $90k (trying not to say WOW!!!) I calmly asked how did that happen; she said interest only loan and I never bothered to refi to get into a fixed. Jees ma'am...

Well ma'am, I can't tell you what to do, but I can tell you a few things that might happen, would you like to hear more; yes.

If you walk away, the lender will be 1099'ing you for the difference and you will be sued by the lender for the difference and possibly the HOA for any legal cost related to your case.

You could request that your lender approve a short sale for you; unfortunately, you more than likely will not qualify for a loan modification, the property is no your primary residence. Also, even if they approve the short sale, you can still be liable for the difference. 

She said she had a lawyer and that she was fighting the HOA for singling her out, especially after all this time; which made me think, have you received any updates (in writing) from your HOA she said she didn't know.

What I suspect is that the HOA has made subtle change to the charter/agreement which has subsequently allowed this seller to be exposed.

I told the seller that I was unable to buy the house but, I would be checking out a few things and would get back if I found out anything useful.

There are a lot of mistakes to learn from here.

Wow!!! Josh congrats! Great accomplishment. 

 Thank you Chris. I'm working of identifying what works best for us.

Hey @Georgia H. How did this deal turn out?

@Jerry Stanford I am interested in this program. Do you have any more information related to this, i.e.

I knew there would be some draw backs with holding my properties in my entity.

What has your experience(s) been when establishing/obtaining a Home Equity Line of Credit on your property,which is held in your entity?

How many times are you willing to reconvey title in and out of your entity for the purpose of establishing a line of credit?