hey ryan here
http://www.reiclub.com/forums/index.php?board=30;action=display;threadid=16870
you’ll see my post.
green queen, your post seems to be a short sale situation. i don’t believe this case is a short sale considering there is $70 worth of equity (so she says).
at any rate, the conversation i was rollplaying would be me with the bank…i’m not sure what to say etc.
ryan
- in whos opinion is there 70k in equity ? the desperate house owner ?
- what the comps
- what are the repairs
- what is the time on market ( very important)
- if push comes to shove do an equity split.
you would be better getting 35 k than nothing, and what a glowing testimonial you would get.
my coach now stipulates that the seller/ debtor gets 25% of net to help them move on.
The reason :
Legislation is changing in different states because there are some bad investors who take peples hpuses and their equity and leave them high and dry.
If we start to give them 25% of net then we start almost a partnership, and a glowing testimonial.
So thats my 2 cents worth.
FYI:
One lender i know of will perform foreclosure bailouts without concern towards FICO… Eastern Saving Bank (i believe the look at 65-70% ltv/cltv. (this is just a point of referrence for your HO to know their real options vs smoke and mirrors)
It sounds to me like they want to stay where they are - if you get into this deal - you may think of renting back to this couple.
I can’t imagine kicking them out of their home if they really to want to stay since they are looking at all options of staying. Where will they go? Will you make sure they have a place? rent money? deposits? food?
You can’t just take the house and move them out and you make some money.
With bankruptcy - at least they keep their home.
Also, banks do not like to foreclose and will do almost anything to avoid it - so she should call the bank herself and try to work something out. Watch who’s business you get into - if you do something wrong or they feel YOU lost their house - well they might be pretty mad.
Maybe you should pass on this deal and look for one that is more staight forward. You don’t have to make deal on every person that calls you. You must weigh each situation and see if its WORTH your getting into - time, money and hassle.
firstly, If they do a bankruptcy it DOESN’T mean they can keep the house!
They go into a paymant plan an ‘WHEN’ they default the lender will go to court and get a judgement to abandon the asset from bankruptcy and they foreclose.
then they have a bankruptyc and a foreclosure.
secondly, I would never put a debtor in the home and rent it back to them, they defaulted before, and there is a good chance they will default again except this time your the bank. Don’t do it.
Short sale it, sell it and help them get a rental and move them in. work out the equity split.
If they really want it and they can afford it, get on to the lender and set up a forbearance plan or a refi.
You may be correct on some things - I hope you don’t talk to your prospects like that. I’d slam the door in your face so fast. Good luck.
Hi Ryan - I just noticed you are in Morris County, NJ - I grew up there and left at 22 years old. I grew up in Dover. Good luck with your deal. 
I am giving you facts not a script.
I help people save there house first, if that doesnt work then a shortsale.
You say do a bankruptcy and keep the house. I am glad you are not at my door telling me that, because when the lender asks for the abandonment of asset and the WILL foreclose. I would sue your A-- ( butt ) for giving legal advice when you are not a bankruptcy attorney. and guess what the debtor would win !!!
Plus with the new bankruptcy laws they can’t just go file, they must now qualify for bankruptcy, it will also cost them, as attorneys will be held liable for false filings so they are charging high dollar to file.
They must notify all creditors 6 months before filing that this is their intention.
And as for do short sale and rent it back to the people, that is a recipe for disaster. Help the family out the best you can, we give them 25% of net, and move on.
I don’t talk to people at the door like that but I have been taught well. this is a no BS game you are playing with peoples lives here, they need the best information and quick results, not some half -ssed idea to stall and keep the house only to prelong the agony.
I never suggested anything to anyone on what to do in this situation. You don’t scare me with your sue statement - ooooooo. You have no idea who I am. I have the right to express my opinion - even if you think yours is the only correct one. I don’t appreciate your language in most of your posts and it still stands - I wouldn’t give you the time of day if I was in dire straights.
Again Good Luck Ryan - from one Jersery Girl to a Jersey Guy.
(I’m finished with this thread - and you, queeny - I know what you’re about)
QUOTE : if you get into this deal - you may think of renting back to this couple.
QUOTE: With bankruptcy - at least they keep their home.
prettty damning evidence to me !!! but then we don’t know who you are.
No one was suing you dear don’t worry, you should take it as constructive critiism and not as a threat. I might have saved you from a law suit by opening your mouth and letting your belly rumble !
Ryan,
As I say all the time …it’s all about choices… if it came to the crunch, who would you have on your team, some one who freaks out when the word ’ sue’ or some one who gives you the facts that will save your -ss ( butt ).
take my advice, if you adivise these people to do a bankruptcy then you could get yourself into trouble, if you buy and rent it back to them … you could get yourself into trouble.
Do the right thing for the debtor but at the same time you need to look after YOU and your family first.
They wont blame you for losing the house… remember it wasn’t you that stopped paying the mortgage !!!
Ryan, this isn’t rocket science… it’s common sense and good business.
have a great 4th
greenqueen,
I was pretty harsh toward you because you were so abrasive in your answers and claim to have spent $95,000 on training. Then you gave a story about losing a limb and I felt compassion and backed off. Your latest posts, however, are pretty rough and sometimes contradictory.
“I help people save there house first, if that doesnt work then a shortsale.”
“I would never put a debtor in the home and rent it back to them, they defaulted before, and there is a good chance they will default again except this time your the bank. Don’t do it.”
Which is it? You help people save their house but you NEVER “put” the debtor back in their home? I think you just displace them. I sent you info on a case where I saved a lady who had a terrible accident from losing her home. I caught up her back payments, paid off her credit cards, and leased the home back to her (she still is a co-beneficiary in a land trust), and am paying her first 6 lease payments. You talked about “If we start to GIVE them 25% of net then we start almost a partnership”. How generous, since it is THEIR house. In my case, we have a full partnership as we work together to re-establish her position in her home.
You gave a story about losing a limb and getting a $1.9M settlement. Since the two of you had much in common, I sent you a copy of a business plan I prepared for her to help her raise $100K to re-start her successful business. NO reply. So, I sent you a PM. Nothing.
You keep talking about your coach as if she were Goddess of the Universe. I guess she is, she got $15K from you. Problem is, nobody has taught you to be kind, diplomatic and understanding when talking to others. It isn’t necessary to bully to get your point across. You’re right, this isn’t rocket science, and it doesn’t take $95K for the normal person to learn. Peace.
Da Wiz
Here we go back to the education spending again !!! Is that all you have to talk about ??? Get over it already.
Well as I said it has raised my knowledge level, and I would do it all over again.
As for my coaches …leave them out of it, we are not aloud to talk about things like that on here, I already have been in trouble from the Mods.
If you have a problem with that then fine, but just look at the forum and the threads and see who is answering the members with good quality information, Wiz with all due respect you enter a line here and there unless you are bitching at me then it’s a novel.
I also thought the forum says no personal attacks !!! this is your second onw Wiz your first was removed but I say it.
Now back to the house business
If you have to put them back in the home or rent it back to them, then they HAVE LOST THE HOUSE CORRECT !!! YOU HAVEN’T SAVED IT.
Also you have now become the bank, you are not Chase Manhatten you can’t afford debtors not to pay you. It is nothing personal IT"S BUSINESS !!!
To help them save the house, you would try mortgage modification, forbearance, or refinance. 2 completely different animals. You are assisting them to SAVE their house and the lender runs the risk.
It is great to help people, who also want to help themselves. It’s all about choices and what have they done to help the situation, have they stopped eating out every night, did the sell the ATV’s they bought, have they cut down on their cable from $150 down to a reasonable $85.
Unless you want to be baby sitting your money for the rest of the loan you need to pay attention.
Dont just put themback in the house because your a nice guy, because when it hit’s the fan, then you’ll say " wish I had moved them on to somethng more affordbale"
It is common sense, If they cant afford the payment before and they haven’t changed their lifestyle GUESS what is going to happen ??? DOH !
If you want to run that risk, then you have no business talking about me spending money on education.
Now another way to view this is; people want to save their house but it’s up to you as a responsible investor to make sure the debtor can afford a refi - forbearance, because if you don’t you will be doing them a great injustice.
Do the people a favor and assist them drop their debt ratio, don’t prelong the agony to make you out a good guy.
And as for the business plan… ever since I got my money, all I have had is people wanting some., something for this , something for that, be a hard money lender, help me start a business, pay my bills please. Now I know how these lottery winners feel all the snakes come out the cupboard.
Yes I did get your email, and good luck to her, and well done to you for getting her $25k from someone else. If it sounds so great why don’t you invest ?
My money is safe and it’s for my family, no ones else.
You have a great day now.
Nobody expected you to contribute, but a courteous reply, or any reply would have been appropriate. I raised $25K for her so far.
Da Wiz
Wiz, maybe so.
Just lets get back to property business and put this behind us.
TG :-*
Hi WiZ - I’m happy to see someone found this post. When I wrote my post, the lady you told about helping after an accident and losing her home was in my mind. I thought you did a wonderful thing and if I could do the same one day - I WILL! Compassion for other begins with compassion for ourselves. I only hope to meet someone as generous as you should I ever get into housing trouble. I bet you’ve been blessed 100 times over. Thanks.
sorry for the late reply guys…i was on a little vacation 
cherdwelth,
from what i’ve read it doesn’t sound like renting them is a good idea. if they can’t pay the bank, how are they going to pay me? then i’d be forced to foreclose on the…not a position i’d like to be in.
as far as this deal being worth my time. i feel any experience i get is worth it. you need to get hands on training somewhere right?
(grew up in morris county eh? how bout that ;] … thanks for the support, we’ll see how it goes)
greenqueen,
here are the answers to your questions:
- in whos opinion is there 70k in equity ? the desperate house owner ?
- this was mentioned by the HO, I will obviously verify this when I speak to the bank.
- what the comps
- i have my sales agent license and will be running the comps myself
- what are the repairs
- i will have to find this out when i visit the home
- what is the time on market ( very important)
- currently the avg time on the market in my county is
- if push comes to shove do an equity split.
- i would be open to that
… i still need to get the “authorization to release” form faxed back to me…i will give and update here once i get that and have it approved by the bank.
thaks for all the replies everyone.
ryan
cherdwelth, give it a rest.
we are putting it behind us… what part of that dont you understand.
have a great day.
Ryan,
get the signed documents before you spend too much time on it.
Unfortunately, some debtors will play one investor against the other no matter how hard you are trying to help them, just don’t fall intothe trap.
Get the paperwork signed and I would record either the deed or affidavit to keep your self covered.
And remember don’t feel bad about covering your self… It’s nothing personal it’s only business!
queenie,
Please refrain from the instruction giving to posters like cherdwelth who are here to learn. You post “let’s get back to property business” and in the next breath go after the next poster. People tend to get turned off to those who bark orders and talk tough and that certainly describes you. Your abrasive tone will turn readers off. You are a poster with information; you are not Mother Superior with a ruler.
On another matter, the business plan I sent you had a GUARANTEED 12% return secured by a beautiful 2-acre ranch so your money and family would have been safe. Of course you didn’t know that because you didn’t take the time to read it. The most important thing I have learned in real estate is to make everything a WIN-WIN situation. Kindness is contagious. What part of THAT do you not understand?
Have a nice quiet day and, remember, a wise man once said: “You were born with one mouth and two ears. Use them in that proportion.”
Da Wiz
Here we go again… have you nothing better to do, than harass me.
I get offers everyday for people who want money, so I switch off. I don’t care if it is 50% return and secured by 20 ranches…I DONT CARE… I DOnt need it !!!..You love it so much you invest.
As for cher… my last post says lets put it behind us then she comes out with all the butt kissing and blah blah blah… so I said enough already.
I am here to assist people all you seem to do is be a pain in the butt, get over it.
I give good positive and business advise here and people appreciate the information. Maybe you should all concentrate on giving the new people some constructive advice rather than using the forum as a soap box.
Get a life people. believe me it’s too short!
Now if it persists I will report it to the moderators … as the rules say no personal attacks…now if you want to go back to the beginning you attacked me first… remember it’s all about choices.
Have a great day everyone.