All Forum Posts by: Account Closed

@Evan Manship Agreed.  @Kevin Jeter didn't state if he was assigning the agreement. If the agreement is being assigned, I'd blank out the price and give him a copy. 

If Kevin is doing a quick flip (as I frequently do, as in I've owned it for 30 to 60 days but now I am selling it to an owner occupied) then the buyer has no right to know what I paid for the property. I have actually had people tell me that I am making too much, since I only paid "X" amount. If they want to pay my asking price we do the deal, if not they simply go away. 

@Jay Hinrichs Apology accepted and no offense taken.

@Joel Packard Chris Mason is wrong on this issue. Disregard what he says and read my post which has the actual law in it.

@Chris Mason You are REALLY GOOD! In fact, you are better than the Ninth Circuit Court of Appeals. I commend you! Which law school did you graduate from?

https://www.law.cornell.edu/uscode/text/12/1701j-3

U.S. CODE:

(1) the term “due-on-sale clause” means a contract provision which authorizes a lender, AT ITS OPTION, to declare due and payable sums secured by the lender’s security instrument if all or any part of the property, or an interest therein, securing the real property loan is sold or transferred without the lender’s prior written consent;

Please note: "AT ITS OPTION"

I've been all the way (took 5 years and $125,000 in legal fees) to the Ninth Circuit on this very issue and Won. Have you? 

Don't be so fast to pass judgment before you do your research! And, you are giving out bad and wrong advice on this issue.

@Benjamin Cowles Generally you are correct. However, don't do anything that constitutes fraud. That means lie or be deceptive. I record the Deed once I take a property so that the world knows the Title transferred. If you aren't comfortable recording the Deed, you shouldn't do Subject To. Rarely, especially in this market do banks call a loan. Also, if the seller ever files a bankruptcy, you want to be notified so you can claim your property. Also, if the seller does something that incurs a lien, you don't want that lien against your property. If the world thinks the seller still owns the property, they will place the lien. Also, if the seller passes away and the heirs think they inherited the house, you want to be able to show otherwise. Also, it is easier to get Title Insurance if you do things properly. And I could go on. regards, Ken

@Account Closed is right on the money. I'm sure there is plenty of info and probably some podcasts on BP for what you are trying to do. 

@Michael P. "They will just walk away as they really have zero skin in the game." You are clearly not aware of how many attorneys are out there willing to take the case if you do that. 

There is so much case law on the issue that your argument makes no sense and is totally incorrect. You should do your research before casting uninformed opinions on a open forum like this.

Yes, Yes, Yes let's do like Jay suggests and take away Subject To and let people figure out how to sell when there is no equity and we will see lots and lots of new foreclosures again! Yes! Let's all make lots of money on foreclosures instead of providing a "steam release" for stressed sellers. Who the heck cares about the seller anyway. They deserve to lose their property and credit because we can't provide Subject To. They were stupid to take out a loan in the first place.

The next thing we should do is regulate HML guys like Jay who lends, so that fix & flippers have to qualify at Chase or Goldman Sachs. In too many markets the HML crooks far outweigh the good guys in this and this practice needs to be stopped.

While we are at it, why don't we ban cars because one guy in Portland was too slow crossing the street and got hit by one. 

It's like using a sledge hammer to remove a sliver.

I don't know about Oregon laws,but Federal Laws about lending hard money on owner occupied, flip or not, are pretty darn restrictive. I'd be very careful. Non owner occupied flips, not so much a problem. 

@Edward Pimentel You haven't stated what your goal is. I think you need a mentor. ;-)

Or, read lots and lots of BP and watch the podcasts. It's all there. Ken