All Forum Posts by: Wendell De Guzman

Congrats Geoff!

My hammer is my cellphone. It's not because the work is "beneath me". It's all about leverage.

A smart man once said, "I would rather have 1% of a 100 men's efforts than 100% of my own."

Imagine had Bill Gates decided to do the filing in his office when he was still in Microsoft instead of hiring a secretary...he probably won't be the richest man today.

Leverage is the key to wealth.

But if you want to exchange one rat race (your JOB) with another (being your own contractor and handyman), by all means continue to swing the hammer.

In a "conventional loan modification", (you submit the usual paperwork the bank asks you to submit and you have no leverage against them) getting principal reduction is rare and practically impossible. But if you do it in the right way, it's possible to get 30%, 40% sometimes even 60% principal reduction in one's mortgage balance in foreclosure.

Here are just three cases where we got principal reductions:

1) Old loan balance: $1.2M
NEW LOAN balance after we did our "thing": $900K
PRINCIPAL REDUCTION: 25%

2) Old Loan balance: $240K
NEW LOAN balance after we did our "thing": $132K
PRINCIPAL REDUCTION: 45%

Here's the video-testimonial from the client:

http://www.youtube.com/watch?v=4EQK0nvZAdk

3) Old Loan balance: $537K
NEW LOAN balance after we did our "thing": $222K
PRINCIPAL REDUCTION: 59%

Here's the screenshot of the modified loan:

http://in-foreclosure-now-what.blogspot.com/2012/10/how-to-cut-your-monthly-payment-by-over.html

What is our "thing"? We call it "Forced Loan Modification". HINT: we use a combination of fighting the case in court through competent foreclosure legal defense attorneys and our securitization audit.

The securitization audit is used to question the legality of the foreclosure because it allows us to find out what happened to the original note.

Click here for more information:

http://foreclosurelegaldefense.com/presentation

If you are in foreclosure and you want to save & keep your home, call me at 714-270-6438 and I can see if we can do our "thing" to help you.

DISCLAIMER: our "thing" works only in JUDICIAL STATES or states where the foreclosure goes through the court system. Click below to see if your state is included in this list:

http://www.mbaa.org/files/ResourceCenter/ForeclosureProcess/JudicialVersusNon-JudicialForeclosure.pdf

ANOTHER DISCLAIMER: Results may vary and there's no GUARANTEE.

LAST DISCLAIMER: We are a paralegal firm and we work for foreclosure defense attorneys. None of the above (including the information on the links) shall be construed as legal advice or legal opinion. Always seek a licensed attorney in your state for legal advice or legal opinion.

The key in Cincinnati is buying cashflowing properties at a discount.

So even if the property does not appreciate, you will still be OK.

Here's an example of a real deal that I have right now in Cincinnati.

Property Value: $45K-$50K

Purchase price: $29,900

Rent: $600/month

Taxes: $82/mo

Insurance: $35/month

With these numbers, it does not matter even if there's no appreciation. You'll make money one way or another.

PM me...I can give you some pointers before you jump in & move to Cincinnati.

Jim, if it needs EVERYTHING, the rehab cost alone may not make this worth while. Say it needs $50K in repairs. It's worth $85K and it needs $38K to pay off the loan and seller is asking for $15K cash.

Let's do simple math:

Loan - $38K

Cash to seller - $15K

Repairs - $50K

Total: $103K

Your re-sale price: $85K

Your profit (if you sell it at zero cost): - $18K (NEGATIVE 18 GRAND)

If I get the numbers right, this is a BAD DEAL. Move on.

@Pete Tam , I lived in Cincy for 10 years. It's OK except the winters are brutal. I lived in CA for a short while and it might be quite an adjustment for you if you have not lived through 4 seasons. I am now in Chicago...and Chicago is worse.

Having said that, investing in Cincy is OK if you're looking for cashflow. But if you're investing for appreciation? Forget it.

@Pete Tam , you can contact the local section 8 office and ask how you can get your property qualified for section 8 program. Once your property is qualified, they will include your property in the section 8 approved list of properties for that area/city/town.

@Jerry Jones , I experienced this before. I got a house worth $120K with a $100K IRS lien in addition to a $120K hard money loan.

The hard money lender was so motivated they agreed to do a shortsale pay off of $55K but I have to worry about the IRS lien.

I wrote a letter to the IRS and got the lien RELEASED for $1K.

Long story short: I got the house for a total of $56K. I then sold it for $85K for quick cash. I never hold on to it.

Hello John and welcome to BP.

Be careful about doing "subject to" with preforeclosures. My definition of preforeclosure is that the owner of the property is already behind on the mortgage. You have to shell out $$$ to make up the back payments. This is the legal way to do it. If you don't do this and just let the house go into foreclosure and you rent it out, you are committing fraud (rent scheming). I hope this is NOT what your real estate mentor/partner/boss is doing.

@Carrie Pledger , you need to know what stage the foreclosure is in, how much is the bank loan and how much it is in arrears (if it's behind on the payments).

It's possible that the owner is able to get the bank to do a loan modification and ask them to postpone the sale.

You can do a shortsale and if you get it at a low enough price (e.g., 50% of what the house is worth), you might be able to borrow money from a hard money lender. Then you can refinance later with bank financing.

I would advise against doing owner financing for a house that could be in foreclosure. You might lose your entire downpayment if and when the bank forecloses on the home.