It’s been a long time since I’ve posted or read this forum.
Seems to be active as ever, Tim’s doing a great job.
I read this thread, and wanted to mention something, perhaps others are not thinking about.
At the moment, as we all know, lenders are having issues, major issues.
Everyone is telling them, ‘work something out with your barrowers’.
Some are listening, many are not.
The thing is, you never know til you ask.
I do a few subject to deals here and there… as a result of my marketing, we get leads all the time from folks who ‘just want out’.
Naturally, not all are good candidates to buy, as they have no equity, are not what I’m looking for etc.
Some are what you describe, have equity, are nice properties I’d not mind owning, but have high, or adjustable (usually high too) interest rates on their loans.
The thing is, some lenders seem to be willing to do workouts, and are open to suggestions.
All you have to do is ask, and frankly, what’s there to lose, aside from some time on the phone?
Let me give you an example:
I’m buying a house this week, (we took title yesterday, sellers move out this weekend).
Sellers were behind, as of October 1st, it will be 3 months, on two notes.
Interest rate on each is high, and adjustable…payments going up in November.
THE LENDER suggested to the sellers that they (the lender) might be willing to work with them.
The loans are 2-3 years old, and this lender has not been fun for the sellers…they still want to walk from the house.
BUT, if they can walk, AND avoid having a foreclosure filed against them, they are all for it.
So, with POA and auth. to release forms in hand, last week, the lender and I had a talk.
ALL arrears are being placed on the back of the loan, as a balloon payment, fees being waved, and, they are lowering the interest rate 2 points on the second, and 1.5 on the first, fixed.
Basically, a new loan agreement.
IF a payment is received by October 31st, 2007. (it will be, just not from me, I have buyers lined up as soon as the sellers are out, to buy on a lease option).
Sellers are happy, Lender is happy, I’m happy, and my buyers are happy.
All because I asked the lender, “what can we do to work this out?”
To which they responded with, “They can pay slightly more per month to catch up?”
And we said, “nope, come take the house then, or, you can give me other ideas”.
The lender by the way, or servicer, is Wilshire, they took over these loans from Argent apparently.
So, don’t throw those leads away, if there is equity, and the only deal killer is the loan terms, then try to change them.
Never hurts, and more and more, lenders are working with us.
I’ve got a local finance company that is sending me 60 day lates where the barrowers want to deed in lieu…and the lender does not want them.
So, I get the deed on the ones I like, the lender forgives arrears, and we resume payments as soon as renters are in place.
So far, he’s helped me buy 4 this way.
Keep your mind open, times are changin, and it ain’t all bad.
My two cents, keep the change,