All Forum Posts by: Kim Frantum

Thanks for the reply, Tom. Apparently, the second loan was a balloon due in 2022. They are hoping the quiet title is the way to go. They tried doing a refi last year and the lender would not do anything until the lien was off the title. They did not offer to pay with a refi as an option.

I believe they bought the house on the high side in 2005. Young couple with little knowledge of the process, just wanted to get in the house. Fortunately, they were able to keep the house when everything went crazy in 2008, but now it's coming back to haunt them.

Has anyone ever experienced a lien on a property, an unpaid second loan that has passed the statute of limitations, a "Zombie Loan"? In this particular situation, the homeowner obtained an 80/20 loan in 2005, stopped payment on the second loan in 2009 just after modifying the first loan in 2008. Recently the homeowner has received correspondence from a collector about the debt, but the letter specifically says that due to the statute of limitations they can't legally enforce a lawsuit. However, there is still a lien on the property (through a mortgage company that no longer exists - WMC Mortgage) so they can't refi their existing loan.  Any suggestions? 

 This is extremely helpful! I will reach out when I'm ready so we can talk about options. Much appreciated!

 Good to know! I'll definitely reach out when the time comes. Thank you!

Thank you for the advice and guidance! This was exactly my thought, eventually deeding the properties to my LLC. Is it usual practice for a lender to agree to these terms?

 Good to know. Thank you!

 I appreciate your insight. Thank you!

 HI Erik,

I appreciate your response! I'm planning on purchasing an investment property. I do currently own a primary residence. 

My goal is to purchase multiple properties in the next couple of years and eventually look into multi-family properties. I'm thinking of purchasing the first couple of properties in my name and eventually deed them to my LLC. Once I have a decent portfolio I can start to obtain financing directly through the LLC.

I'm a new investor preparing to purchase my first investment property soon. Eventually, I would like to place my properties into an LLC, but for now I feel like I need to purchase my first property the conventional way; get a loan through the bank. From what I've read, new LLC's are probably not going to obtain financing. Is this the way to go? Any advice or feedback is appreciated.