All Forum Posts by: John Slater

Not necessarily..  Dealing with pre-probates, you dont know how long they are taking to initiate probate, hence the lender putting them in pre-foreclosure.  Do you have a good probate attorney you'd recommend?  If you're contact pre-probates, offering a recommendation of a probate attorney help in some cases to keep you in the mix when it's time to sell.  If you come across a pre-foreclosure that requires probate, same thing, need to get probate open to postpone the foreclosures, you providing a probate referral as someone who is helping, but then ready to make an offer can work out.

Quote from @Joseph Hernandez:

Thanks John, I appreciate your comment. However, I respectfully disagree that the vast majority of homeowners in foreclosure aren't in denial. Although I am a newbie wholesaler, I have spoken to roughly 30 people in foreclosure. Most of them make statements such as, "I'm not in foreclosure," or they flat out deny they have any problems. Furthermore, I read that death, divorce and foreclosure are the 3 biggest stressors in life. As you may know, people are equipped with defense mechanisms that protect them from trauma, and denial is one of them. So, i'm searching how to get homeowners in foreclosure out of denial. I know it's not easy, but there must be a way. I want to specialize in working pre-foreclosures. If I can get them out of denial, I can help more people. 

I can appreciate that. I’m 10 years working with pre foreclosures, with denial word I’m on the fence, I don’t get a single person tell me “I’m not in foreclosure”.. it could be anything from your info not up to date, and/or also the approach.  I also get people hang up or slam the door, not all awesome conversations, but I show up in a way to not be about buying or selling, to be about help and education for them. Makes a big difference. 

Quote from @Joseph Hernandez:

Thanks Kevin, good feedback. Do you know how to get homeowners in pre-foreclosure out of denial? Also, at what point do most of them get out of denial? A few days before auction day?

It's not denial is the right word anymore.  Bottom line is people dont want to sell while in pre-foreclosure, ultimately they may need to sell versus want to sell, so some serious push back on selling yes, but its simple a process to educate the homeowners about their options.  If they can do a loan mod and keep their home, awesome, they kept a home for the family and I have no reason to help them reach a decision to sell in those cases.

But by presenting options, helping them understand all their options, helping them works through some of them realizing that option wont work for them, then understand how selling is a real option, often the best option, then you'll have a better chance at a deal.

As for value.  Higher the value, higher the potential for a headache and a burnt pocket.  But no, there aren't more options available to someone with a higher value house.  An investor offer is always going to be lower in this market than a traditional buyer, so yes listing on the market will likely be their best option assuming they have time in the foreclosure process.

No property should be going to auction like @Kevin Ivey bought.... got to be an interesting set of circumstances to allow your 1mil property to get sold at 600k... 

There are company's that make money from this yes, and for sure there is a service that can be provided.  Its really not a difficult process to get the surplus money back, but like anything, if someone is prepared to pay someone to do something, then someone can always make money.

Quote from @Rob Pattison:

I own a note in Memphis on an occupied rental property.   The borrower lives in a house across the street.   I believe he has family members living in the rental property.   The utilities are in the borrower's name.

When I bought the loan in July of 2022, the borrower was 5 months behind.   He claimed he hadn't received notice of the transfer, or the mailed hello/good-bye letters from the previous note holder and my servicer, Madison Management.  He refused to pay until I had an attorney send him a demand letter.  Then he paid, then filed BK-13.  He has owed me since December 1st.

The court dismissed the BK-13 and I looked for an attorney that would pursue a forfeiture (far lower cost, under $1k) rather than a foreclosure, far higher cost ($5k - $7k+) as my note is a contract for deed, not a mortgage.   The borrower last month sent my servicer a check for $400, which I instructed the servicer to refuse.   The borrower, sensing something was up, then sent my servicer a full reinstatement payment by certified mail for $2k+.   I've instructed the servicer not to cash the check.

The contract for deed states that if at any time the borrower is more than 30 days past due, I can call the entire loan due immediately and obtain possession of the property.

Question:   What would you do in this situation?   Accept the check already sent and wait again for him to be 30+ days late then pounce with my attorney, or refuse the check and seek a forfeiture.

I bought this note for $20k.  The property is worth $60k

 If it were me I would call the whole note due. If you aren't ready to do that, then accept the $2k, with a notice that if it happens again you will then call the whole note due.

@Belinda Fello - is it apt 191? if so, its a HOA foreclosures not a lender foreclosure. Meaning the VA aren't foreclosing right now, but for sure you need to worry about the HOA!! They are a$$holes. It went from 9k owed in September, to 12k owed in Jan. thats 3k in 3 months, and I'm sure his HOA wasn't $1000 a month!! If you can pay off the HOA and bring it current I would do that tomorrow, their fees are crazy, plus in Nevada the HOA can foreclosure and wipe out the mortgage, so they have an incentive to foreclosure. Even if VA loan was to issue a foreclosure notice tomorrow, it would still give you 4 months before they could sell the house, worry about the HOA for sure.

Quote from @Belinda Fello:

Hi guys, I have a complicated situation and hoping I can have some guidance/opinion. I am in the middle of probate for my brothers home. Long story short, I recently discovered my brothers home was in foreclosure and had been told by my family that it was taken by the bank years ago. I am new to real estate and was pretty young when all of this happened. I have two options as the late fees have accrued to 58k, The mortgage itself has 165k left with a 4.75%. The house is a condo in Las Vegas. It is gated and is next to a park, school the police academy, gas station freeway and neighborhood wal-mart. I had talked with a bank and my attorney and discovered there is about 170k in equity and the home is now worth roughly 300k. I am in probate because it is a VA loan and I am not a veteran and he did not leave a trust or will. I am currently in process of applying for mortgage assist so I can bring his mortgage to current, however it will be with new terms and a higher rate. If I go the other route I will have to find ways to find funding to bring up to date. I am not sure which direction to go as I really feel like a short rental may be profitable however assuming the loan may impact me from renting as I was told by a loan officer loan assumptions cannot have renters. Sorry for the long winded unorganized paragraph. I am obviosuly all over the place. Anyway, any opinions or guidance could help Thanks -Belinda

Hi Belinda, assuming it's in foreclosure process and not previously foreclosed on (sent you a DM, I can double check it quick for you), then you're probably looking at having to refi, which in today's world isn't awesome with the rates, however, marry the property, don't marry the mortgage, meaning if you want to keep it as a rental, keep it, and if you get a loan eventually refinance that loan when rates come down.  could be a year, 2 years, but either way they will come down at some point.
On the probate side, you need to make sure you are keeping an eye on the foreclosure sale date.  The lender doesn't care you are in probate and dont have to postpone a sale date just because its in probate, worst case the attorney can get in front of the judge and ask for a stay on the foreclosure which they bank will then have no choice.  
However, I've usually found that if you're in regular communication with the lender, letting them know where you are in the probate process, then they will normally accommodate an extension.

Couple of questions though...
do you know where you are in foreclosure process compared to probate process?
Are you the only living heir?
Do you have ability for a new loan in your name?  I doubt VA will allow you to assume.
If you owe say $150, and property worth $300, if payments make sense, I'd look to borrow a little more than $150, say $200k, now I have some money to renovate for a rental, and/or have money to pay the higher mortgage rates for right now.  

Quote from @Michael Evans:

Has anyone ever worked with New Western in Los Angeles. Just wondered how your deals went and if you were happy. Thanks

@Michael Evans - RUN FOR THE HILLS AND DON'T LOOK BACK!! It's been a while since I was communicating with people from there, maybe 4-5 years, but they were horrible!  My partners and I had to help some, actually from the desert, unravel all the mess he'd gotten into with them.  Now, not everyone at the company suck..... and they've been in business for a long time, but, they have a horrible reputation in LA and it's easier for a newbie to think great deal, when it really isn't.

Quote from @Kristin Vegas:

does anyone here know some lenders that lend to mobile homes park in san diego or riverside county. I'm looking to get a mobile home loan for family community. if is possible to get a loan for that. appreciate your hepl and god bless

Santiago financial 

Hi Jeff, your questions are really a whole lesson in itself.  There's a few subject-to guru's who like many guru's make it sound a whole lot easier than it actually is...  I've done a few subject to's, very specific situations that created a win/win for both myself and the borrower.  There's a good amount of trust in the transaction for sure, and imagine being the seller who sells his house to you for zero, its awesome you're going to make his mortgage payments, but the seller is still the borrower, who is ultimately responsible for the loan, not you, and its their credit taking the hit is something goes wrong.  In addition, what is the seller wants to rebuy in a year, two years... and then realizes their credit/debt etc is affected by the outstanding loan they have on a house they dont own.

The contract is easier than it sounds.  My purchase contract has a section that I complete to say "being purchased subject to the existing mortgage of X balance".  In california, as long as you have a good escrow officer that understand its, the contract is simple.