All Forum Posts by: Kathryn K.

Once it is listed with a realtor, what is to stop that realtor from taking another offer and presenting it to the bank? Since you don't yet own the house, the listing agreement is with the seller, who has an interest in getting the highest offer to mitigate tax consequences. Is this just about finding a realtor on your team who knows you will bring more deals?

Here's the backstory. The homeowner died without leaving a will, so the house is still in his name, as is the loan. Before he died, he appointed his son conservator of his affairs and the guy tried for three years to sell the house during the market crash. Bickering siblings hoping to cash in created disagreements about the price, failing to lower it realistically during the market crash and long story short, they've given up and quit making payments on it. The house is not listed, is vacant and is in need of repairs.

ARV- 115-120K
Loan balance- 92K. Loan is 9K in arrears and 3700 owed on back taxes. The lender is the local Wells Fargo.
Repairs-rough estimate 15K

The guy wants to get rid of the house because he's worried about liability. He has little incentive to avoid foreclosure as the loan is not in his name and he will suffer no tax consequences. He's willing to try and shortsale it with the bank, but the BPO may not come in low enough for my liking, as I would like to wholesale it.
The property will cash flow if brought current, but I don't want to put out the money to bring it currrent and make the repairs.

I would appreciate any info or feedback regarding this. Should I give him some cash for the deed and if so how would that affect my shortsale negotiations with the bank? The bank will require that the property be listed during the shortsale process, which obviously would create competition and right now, I'm the only one the guy is talking with.

Thanks for the info. I know they are getting a five year repayment plan, but I forgot about insolvency. Looks like they may walk away without a deficiency. Maybe I should make an offer on the rentals!

My neighbors are going through bankruptcy, I think its chapter 13. They have a couple of rental properties that are included in the bankruptcy. They are upside down and will result in an eventual shortsale. What happens to the deficiency? Will they get a 1099 or will there be a deficiency judgment that gets thrown in with the rest of their debt to pay off? They are under the impression that there will be no financial consequences regarding the rental properties.

David,

I'll post a link if I ever get it done. Its kind of turning into an 800 pound octopus...I was writing about a process called "debt stacking" which I am using to pay off my cards, but there's all these other options out there and I am trying to check it all out. Eliminate debt, debt consolidation, credit counseling...you name it. And everyone has a different situation so the method or solution for one person may not be the right thing for another.

I agree David and I intend to do that. I have paid two in full already. I am asking because I am doing research for a website article I am writing and I want to find out the facts.

Okay here's something new I came across. A company that uses contract law to get your credit debt reduced. Basically, along with the latest minimum payment sent intentionally late, they send a "new contract" to your credit card company with new terms, including a statement that they are assuming the debt. The new contract terms are minimum payments of 10 bucks with zero interest and no late penalty fees, they must continue positive credit reporting on the previous client, (since they are now assuming the debt), and state that their (the credit card company's) cashing of the latest minimum payment is an indication of agreement with the new terms, including stiff penalties for violating the new terms. The credit card company invariably cashes the check, then issues a new statement that includes a late payment penalty, thereby getting them a penalty and reducing the outstanding balance. It goes on like this until the balance disappears in penalties, and the credit card company settles for the terms under contract law or the company who assumed the debt takes them to court and sues for the outstanding debt they accrued in penalties. Anyone heard of this?

I'm in Ca as well, the sfo bay area, and there is cash flow all over where I live, but most of it is on REO properties, and I don't have a buyer's list built yet to flip those things to serious rehabbers. I am afraid that if I dont' get the buyer in time, I will lose whatever earnest money I put up, and I can't seem to find true hard money lenders who will finance the property for me if I don't find a wholesale buyer. The bulk of the sellers who contact me are either upside down and need a shortsale, which I am not sure how to wholesale, or they are willing to do some short term seller financing, but the problem there is that it will be difficult to refinance if the property won't appraise for what they are asking. I keep looking, tho' and I think I am getting close to working a deal between two people, one is a buyer I found through gosection8.com and the other is a seller I found by contacting a "For rent" landlord on craigslist. Hang in there....theres money to be made in CA as always, we just have to try harder.

Joe,

Would you mind telling me which service you use? Also, are the newsgroups already in the software application or did you have to accumulate them yourself and enter the website info? I am curious about using this to drive traffic to a site as well, with articles. How many people can you contact with an article using an autoposter service? I am planning to build a website and am researching various ways to get traffic.

Does anyone know what, exactly, these services are? From what I gather, you can send out ads or articles en masse to newsgroups, ezines, email addresses, etc. I really know nothing more than that. Do these services have the newsgroups and ezines already in a database or is it that you have to build your own database and the system helps you manage it? I would like any info or feedback on this as I have heard that there are some people using autoposter services to market properties.