All Forum Posts by: Jose Falconett

• I am trying to figure out what the loan amount is for motivated sellers who do not know what they currently owe on a property, their interest rate, and their monthly payments. When I get calls from sellers I want to be able to filter out the ones that do not have equity in the property.
• Investors have suggested to let the title company worry about this since they do a preliminary search...but that would mean it would cost money for every search on every prospective seller and of course most don't have enough equity in their property.

                                                 The advice I've gotten was that their are 2 ways to find this out: 

#1. Have the seller call/request by mail a "payoff statement" for the loan.                                                                                                    This would take 2 weeks time waiting for the mail. For phone calls, I would need to 3-way it and that's awkward since I wouldn't have legal right to their private information.  (I assume most investors don't request this based off this).

#2. Make an educated guess from the public records mortgage consideration balance by using an Amortization schedule calculator...                                                                                                                                                                                             So the calculators want me to put things the mortgage note does not publicly show; like interest rate, monthly payment, tax, and whether or not it is interest first or combined interest & principle together. 

Use this property as an example if you will please, it had been refinanced years later if that matters. 

http://216.255.240.38/wb_or1/details.asp?doc_id=41.... 

I assume all investors use the Amortization schedule calculator to find out what their prospect owes. 

Terrific, man thank god for your existence haha.

@Ned Carey Since investors rely on the public records search for the Note to find out what is owed on the property through the amortization schedule calculator, it would seem that this is a educated guess so how close is the mortgage debt to the calculation?  (Interest rate, monthly mortgage balance, is not included on the note, and if there was a second mortgage)

If I were to wholesale the property, I want to make sure to convey to an end investor buyer that I am positive this is the current mortgage balance/debts to not waste their time.

@Ned Carey Was reading about the "payoff" statement. Is this important to have before putting the deal under contract? I read this can take up to 7 days to receive in the mail and that doesn't include mailing a request to ask for one (another 5-7 days)

@Alex Deacon wow brilliantly put, I will edit that in my contract. 

So what is the difference between the before & after 6 month marker for mortgage or tax defaults? 

@Alex Deacon this is a hypothetical.

But does the length of time that the property has been in default affect anything? Before the closing process

Is their is a difference between tax and mortgage in the dealings. Im sure buying a 1 month behind on mortgage property is different than one thats defaulted after 90 days etc. 

It is not likely that people become millionaires in a year. I havent done my first either but I am taking the time to learn the ropes. 

So if a seller has defaulted payments on their taxes or mortgage for several months, does the length of time that they have been in default affect a prospective buyers ability to purchase the house even if the buyer is willing to pay off those defaulted payments (motivated seller).

I would rather not wait to find out the house is not sellable at closing/title search due to tax or foreclosure proceedings. I would like to be able to know before putting it under contract.

@Charles Oglesby What! hard money has a huge cost involved that if you never made room for in the deal can make it not a deal, that does not compare to paying just cash. A flip and wholesale is not interchangeable just because you want it to be. for a wholesale you must account for both the flipper and the wholesaler.

I think the whole do it and learn first is over emphasized; it is necessary to sit down and learn the numbers on paper educating yourself primarily before someone goes and makes a more than a bad mistake that can affect their personal life

@Ned Carey right a title search should relieve that worry but before it goes to closing I want to be worry free, how do I mitigate the tax and mortgage default payments that are months behind? is the property not able to transfer to buyer after a certain amount of time in default (Tax or mortgage)?

I've got both. There are some free ones online if you click tools up there. It will be under files, but frankly their is not enough protection and clauses in them for my liking. I could sell you mine for a few bucks just because the ones I made took an agonizing 2-3 days worth of binge work to complete mine. PM me if you are interested.