All Forum Posts by: Steve Crawford

While it is correct, the government has the budget to pursue these actions, always remember what the lesislative intent is here.

RESPA is suppose to protect the consumer/end user/buyer. It is not to thwart business transactions with no evil intent. There are rules.
They need to be followed, but they dont have to be stretched beyond fear.

Hang in there and do the right thing.

Specifically with respect to RESPA, I may have a misunderstanding of "leads for sale" or "bird dog fees". I was under the impression that these were fees paid to the "finder" and out of the pocket of the "investor". Unlike the "kickbacks" that are ultimately borne by the borrower or home owner, which RESPA seeks to alleviate, fees that can't possibly increase the price or fees to the end user would not seem to be covered?

I may misunderstand "bird dog fees" or leads for sale.

"referrals" (with a fee) that result in the end user being required to use any service provider or purchase any service or product would seem to be prohibited.

Help me out ...........

This thread for opinion only.

Charles,

I have used the Real Estate Professional status for about 3 yrs. The main benefit is so as "not" to limit or cap my deductions.

Are there any recent changes in the Tax Code regarding Real Estate Professional status?

Not asking necessarily for specifics, but whether that Section of the Code has changed in the last couple of years.

jimmy,

without access to PACER, you should just use your search engine HUD Fraud......and you will get Department of Justice website, articles, appellate cases in pdf, etc. There is plenty to read out there.

The charges will be Federal in nature, brought under the United States Code and prosecuted by the US Attorney.

As far as what happens to others .......prison.

As far as other BP members.......i doubt it, not from what I have seen. These folks seem to seek out the strategic and ethical approach.

Someone will likely check and you just dont want to do this.

If you girlfriend wants to buy it and live in it, great.

If you want it as an investment, you will need to wait until it can be purchased as an investor, disclose yourself as an investor, and get investor financing.

Seriously, anything else is a criminal offense.

Ditto on the importance of having an Operating Agreement. Moreover, it is really nice to have a Buy/Sell agreement that is designed for exactly these type of exits.

One approach that I have used assumes facts that both parties want out of the deal, both have the ability to get out (re-fi if necessary) and you can bring this to an end quickly.

Figure out a number (and you can include terms), write it on a piece of paper and give it to your partner and tell him......His choice. Either he pays you and takes you out of the deal, or you will pay him and take him out. One way or another, the property is coming out of the partnership and to one of the partners.

No negotiation required. Be prepared for either answer and act accordingly.

Sounds like too small of a deal to get tied up on for too long.

Unless it is a small local or regional bank, you may be able to get the payoff number, and assuming you can get a hold of someone, you might get to submit a blind short sale offer, but rest assured they wont have a clue if there is equity. They wont do their BPO until the foreclosure is complete. In MO, it's non-judicial so you won't see Court dates.

At this point, you are probably better to watch the property, work with the current owners to keep apprised of foreclosure dates and wait until its REO. At that juncture, you will have a ton more luck getting through the system.

Kasha,

If it is one of the big foreclosure firms in KC or St. Louis, they wont call back. They work exclusively for their clients and they show up in the legals as the counsel for the lender........and they get literally hundreds of calls from homeowners, investors, relatives, etc trying to prevent the foreclosures. Most often these two firms I am thinking of, don't even return the calls of other attorneys.

Email me the name of the firm, if I know them, I'll call them for you.

steve

"preferential kickback" would be when a Seller has knowledge that he/they are going to discharge creditors in BK and they sell an asset or some assets "before" they file. The Court would want that sale to have an approval to ensure it was not a fradulant conveyance.

So, if they have large portfolios, sometimes, they still sell, or follow through with a sale, but they make it subject to approval of a Court approved 3rd party.