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utahinvestor@yahoo.com
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4/20/2002 11:37:42 PM
Thoughts for fun & to make us think
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utahinvestor@yahoo.com
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4/20/2002 11:37:42 PM
RE:Thoughts for fun & to make us think
Hey All,
Here are some funny thoughts about Foreclosures, Words of Wisdom that many of you have shared (that I saved and compiled), and a few questions about what else?. . . . Foreclosures.
Here we go, enjoy.
Below are some common Foreclosure questions. I’ve included answers, as well as some humorous ones. I must put in my disclaimer that I’m not in the mafia, the funny answers are to just brighten your day.
Q. How do you do this Foreclosure Business?
A. You give the loser homeowner a few bones (cash) and get his butt out of your new pad, you do a very quick cleanup (make the kitchen & bathroom smell clean-get trash off the property-steam clean the carpets kind of quick), and sell that stinkin’ property to some other loser for many more bones (more cash) to you, and be done with that flip thing in less than a week or two, and pocket some cash. See what I mean, man??? You don't need no stinking money to do this business.
Real Answer: I learned to do it that way because I didn't have any money when I got started either. Now, worst-case scenario:
I find a deal, but the Trustee Sale is too close (a week or two), your getting nervous and you don’t have any money to reinstate the loan, and so the solution is to find an investor to go in halves with you and he comes up with the reinstatement money for half the profits (try to give away less than ½), you keep the deal alive and then sell it and split with the investor, or, you come up with the $3K to 8K yourself, reinstate the loan and keep all the profits. Make sense?
(Dang this Utah Investor guy is one sharp cookie! I like him)
Q. What does the bank want or need to satisfy them to stop the foreclosure? Do they want payment in full or just payment of unpaid payments and late fees?
A. They wants yo pinky, and yo sister. No sister, we wax yo brother. Then it's a deal, see.
Real Answer: They want the loan caught up (aka. reinstated or bring current), they don't want to foreclose and don't to be paid off (One day I'll explain how that whole banking thing works). So your answer is yes, sell the property before you have to reinstate the loan. I do that 99.9999999999999% of the time. Let me repeat so there is no misunderstanding:
Q. I think they give about 90 days to foreclose, but when does that “clock” actually start?
A. When the boss says it starts, are you stupid, or what?
Real Answer: The clock starts to click when the Court Suit is initiated, or when the “Notice of ___________” is recorded, depending on whether your State does Judicial or Non-Judicial foreclosures.
Q. And is expected in that time frame?
A. To cough up the bring-current (money for the loan) or they send Guido to kick your butt and give you cement booties.
Real Answer: To reinstate the loan, or they foreclose, it's that simple.
Q. Do I actually purchase the property?
A. Hallelujah Brother, you are the proud owner of a dump, and you want, how much for it???
Real Answer: Yes, you are purchasing the property because the homeowner is signing a Quit Claim to you for the property, don't worry about that stinking loan of theirs that’s in foreclosure, we already resolved that issue. It's your house now, baby!
Q. I can cover the 2K to the owner, but I can’t get a new Mortgage.
A. You don't need no stinkin' new mortgage. Is you thick headed or what? We already covered that question. Just 0-2K for the loser homeowner, a few bucks to make the place smell pretty, and a couple bones (money) for the best newspaper ad you ever saw in your life, the ad you wished you opened the paper and saw for yourself. The ad, which makes 15 - 50 calls per day happen.
Real Answer: Who needs a real answer, I like that one.
(Dang, maybe this Utah Investor guy ain't so dumb after all.)
Q. What actually transpires with the troubled owner?
A. So wat choo say, you wants us to wax 'em, or what?
We takes 'em out back and bang, he goes in the dumpster, just like da boss
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utahinvestor@yahoo.com
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4/23/2002 12:28:23 PM
gworks153,
You asked:
1- if the bank sells this property, doesn't the amount over what is owed minus expenses go back to the original owner.
Answer: If it is bid over the amount of the bank, the remaining funds would go to the 2nd mortgage (if any), and then the balance would go to the owner, you are correct. All the more reason to become an expert at knowing what to do at the Foreclosure Sales (hint hint).
2-how do you find out what amount is in arrears
Answer: In most States, it appears on the Notice filed at the Recorders, or at the Suit at the Courthouse. If you can't get that info, I have no problem asking the owner how much he's behind.
3-if you can make a deal with the owner for $2000 and covering the arrears and you can't flip within 1 month then what happens.
Answer: I don't care about 1 month, it's "when is the sale?" "When am I getting wiped off?". Once I know that answer, I'll sell it before that date, or I'll reinstate the first to keep it alive, or if you have no funds, bird dog the deal to an investor.
AndrewH,
My question: What do you do with the quitclaim deed once it is signed?
Answer: You owe me a milk shake in Vegas for this answer. You haven't been reading the posts, naughty naughty (I've answered this many of times), but what the heck, to earn another Milk Shake, I'll list it here, just for you:
You are going to hold on it. You cannot file it with the Recorder's Office, the name of "WHO" it's being signed over "to", isn't filled in yet; I'm waiting for my buyer to come along, so I can put his name in there.
Now, if you going to keep it as a rental, then put your name in there, and file it at the County Recorder's Office (aka Recorder of Deeds Office).
kastin,
You asked: So only reinstate the loan if it's getting to close, don' you have to notify anybody that it won't be going to auction?
Answer:
Most banks won't accept your reinstatment, they want you to do it through their Foreclosure Attorney, so once you do that, obviously the Attorney knows, not to go to sale.
Ca'pesh?
Have a Foreclosure Day!
Utah Investor
Cheers
Jon
Cheers Utah
lwblock
Posts: 4
Registered: Apr, 2002
Re: Thoughts for fun & to make us think Posted: Apr 22, 2002 11:31 AM Reply
Ok, you got me thinking. Since the other poster wasn't clear on buying and discounting a second mortgage can you explain? Do you get a committment from the bank, sell the house, then pay the lender?
And, what other paperwork do you get signed with the seller other than a quitclaim deed? Sellers disclosure, authorization to release info, power of attorney, purchase agreement, or what?
You da man!
AndrewH
Posts: 5
Registered: Feb, 2002
Re: Thoughts for fun & to make us think Posted: Apr 22, 2002 8:02 PM Reply
Utah - Is your name on the original quit-claim deed?
If so, do you do a new quit-claim deed when you sell the property?
Thank You
Andrew
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utahinvestor@yahoo.com
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4/22/2002 12:30:21 AM
Morrigoon said,
What exactly am I looking for at the Recorder's office? (eg: what forms/filings/records am I asking Joe Blow the minimum wage-earner to direct me to?
Answer: I hope you got plenty of Milk Shake money saved up for Vegas.
You are looking for someone to show you how to look up all the _______________ on the computer. You want to create your own list, on the computer.
(blank is filled in with whatever name is used to track deliguent properties, ie. Notice of Trustee Sale, Notice of Default, Lis Pendes, etc.)
Now that you have this list appearing in front of you, you start making notes about each one, then you research each one. You will learn how to do this quickly and effectivly, reducing your time to 5-10 each. It will happen, it always does.
You asked:
What information am I seeking there? Specifically?
Name, address, ____________ date was filed, amount of the loan in Foreclosure.
From the Assessor's, you want the County Tax Market Value.
That is enought for you to decide if it's a good deal or not.
THEN GO WORK THESE DEALS, DON'T DO ANYTHING ELSE, GO WORK THESE DEALS.
Then get a Quit Claim.
You asked: You said something about talking to the paper-shuffler at the bank? What's the his title, so I can ask to speak with him, and what am I asking him?
Answer: Is this about the 2nd Mortgage? I'm not sure of your question.
You asked: So okay, I find Mr. Delinquent homeowner and say "Hey bruddah, I give you fie hunned dollahs, you get out o' my house, o' what?" He signs a quit claim deed (where do I get those, btw?), and now what?
Answer: He moves out, you clean the place up, and sell it fast. When escrow closes, you get the profit.
You asked: How do I take over the mortgage or bring it current?
Answer: Most of the time, I don't. I sell it before it goes to sale.
You said: Sorry to be the stupid one, but I have absolutely NO experience with banks or contracts, so these two areas are an unknown game to me
Answer: Good, this means plenty of Milk Shakes for the fat Utah guy.
You asked: Do I contact the bank and say "here's your money, send me the bills from now on"? Don't they write something in their mortgages to prevent people taking over the properties? If the mortgage isn't mine, what guarantee does the homeowner have that I'll take it over? What guarantee do I have that he doesn't take the house back (besides the quit claim, obviously I have that).
Answer: Is there a question in there? hehe
Extra whip cream for this answer. You aren't reinstating anything, you are selling it and the new buyer is bringing in money to pay off the loan. You won't be calling the bank, it will only cause problems. If you call the bank, I send Quido over to whack you.
You said: I see the basic process here: Find house, get quit claim, clean up and sell, but the fill-in details I do not know or understand yet here. I want to get going on this stuff ASAP, but still have no clue what steps 2,4,6, etc are?
Answer: Patience my son, I'm working on this post/book which lays it all out in order. When I'm done, you'll get one.
I might charge you for additional French Fries with that, but you'll get one.
Holy smokes, more questions?!
Morrigoon asks:
So in working preforeclosures, what do***ent(s) am I looking for at the recorder's office?
If I have to cut and paste, they'll be hell to pay.
Questions about Research
You asked:
What am I looking for at the courthouse/recorders?
Answer: Different information at each
You asked:
You mention software: software of what?
Each Area is 0pen to the public because of the “Freedom of Information Act”, and each building has computers which the public can use to look-up information about properties. Getting to know how to use the softwares at each building is part of the knowledge/experience we must have, to be able to search out all the information we need to decide if a deal is bad or good, and
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utahinvestor@yahoo.com
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4/21/2002 12:21:48 PM
Taycour,
You's got's it right, man.
Just remember to send da boss his cut, or he sends me to wax you.
I dont's like's to do dat, cause it gets blood on me clothes, and the ol' lady gets mad see, and then she don't give me no Milk Shake money, see.
And then I'm pissed, and you dont wants to see me gets pissed.
Ask Stacy, she's on her 2nd Husband, and she don't want to have to get a 3rd, they are too hard to train, you gets it? (I don't know how to spell ca'pesh?)
You's do good, we be friends, heck, we might have you's over to the house for some spaghetti or somethin'.
Utah Investor
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utahinvestor@yahoo.com
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4/21/2002 12:13:58 PM
Freedom,
Yes they can. They can work everywhere. The Freedom of Information Act gives us permission to search these areas.
Now each County and each State do it a little differently. This is the first wall we all must overcome, figuring out how to get at the information we want, where we live.
Might be tough, might be easy. But is it worth it? Ask anyone who has done it successfully. Yes, it works. Your's might be a bit more easier or a bit harder, but it can be conquered. Let me ask you, do you have anyone in your County who buys Foreclosures? Are there any ads in the Real Estate Wanted Section of the Newspaper, that says, Will buy Foreclosure, Can Buy any House and close in 2 days. We buy Ugly houses, etc.. Any ads like that? They chase Foreclosures.
Yes, it works.
Best Regards,
Utah Investor
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utahinvestor@yahoo.com
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5/19/2002 3:57:19 PM
Thanks for the kind words.
Let me explain something about Capital Gains & Taxes. It is difficult to explain on the thread, and opens up too many questions.
I'll be happy to explain any questions you have in Vegas, I'm just not comfortable talking about those things on a Chat Room that's open to the world for years.
See you in Vegas.
Utah
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utahinvestor@yahoo.com
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4/25/2002 1:43:46 AM
Morrigoon,
Good job bud. Think about this:
How many other people would have given up by now, and now, look what you know?
You now have the beginning of what it takes to be first in your County. Do you see the value of what you just learned?
Do you see the wall that kept you out? Are you grateful that the wall is there? To keep your competitors out?
Do not surrender, continue to find, dig, ask, learn, seek, question and read. You will figure out how to be first, how to have a system to do this business.
Great job (so far). Keep going.
Utah Investor
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utahinvestor@yahoo.com
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4/26/2002 10:13:46 PM
xiwizard,
You asked:
Is there any rule of thumb whether to go after a short pay (and have to get financing) or just get the Quit Claim signed, sell the house, pay off the loan, and therefore assume the non-assumable loan? It is one or the other, right? How do you decide which way to go?
Answer:
Only you can decide to keep it or flip it. It's based on where you are in the Rat Race. You know my opinion.
But to clarify, your choice is to:
A. Get a Quit Claim, get owner out of house, resolve loan (reinstate or get new loan), rent it out, and keep it, or
B. Get a Quit Claim, clean it up a little, flip it, pay off loans, keep profit.
Morrigoon
You asked,
They have this nasty habit of not putting ANY dollar amounts on the files. Instead the notice instructs the party in default to contact them for the amount they are in arrears. Now, if I call... will they give out that info or consider it private? Is there somewhere else I can look up the info?
Answer:
Don't call, they won't give you the time of day. You don't need the "behind payments amount", you need the amount of the original loan and the date it started.
You asked: There are some property value figures under parcel information, but everything's abbreviated and I can't tell which (if any) I should trust. Should I look that up in a different spot too?
Answer: No, you should ask what they mean. One value is "dirt" value. One is "house without dirt" value. One is total of those two numbers. Do the math. You want the Total, that's the value.
You asked: What flavor Milk Shake?
Answer: Is their a bad one? (You don't get fat, being picky)
You asked:
When I get a sale, how long do I set the escrow for?
Answer:
You don't need to set one, untile you have a buyer, and then your agreement will determine that.
You asked:
If you have, say a 60-day escrow for a property, and find a buyer in, say, 3... can you close earlier?
Answer: As soon as you are ready.
Utah Investor
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utahinvestor@yahoo.com
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4/23/2002 12:42:32 PM
lwblock & Andrew,
I apologize. I bought a new laptop, and I hit the post button too early, without answering your questions. So here they are:
Lwblock,
Since the other poster wasn't clear on buying and discounting a second mortgage can you explain? Do you get a committment from the bank, sell the house, then pay the lender?
Answer: If the 2nd agrees to sell, they want their money yesterday. They won't wait 1 week. I send them their money, but that didnt' take 3 days. I immediately start working on selling the house.
You asked: what other paperwork do you get signed with the seller other than a quitclaim deed?
I get an Signature Authorization, so the bank and attorney will talk to me. And that's it, just those two.
AndrewH
You asked:
Utah - Is your name on the original quit-claim deed?
If so, do you do a new quit-claim deed when you sell the property?
Andrew:
If you make me answer this, I'm hunting you down, taking your wallet, buying me a Milk Shake, flying home, and not saying a word to you.
hehe, couldn't pass that one up.
OK, I'm not repeating myself from the previous post. But I'll say this, you can do it any way you choose. If you want to put your name on the Quit Claim, and do another one to the new buyer, go for it. There is no right or wrong. OK?
Best Regards,
Utah Investor
P.S. I'm bringing thumb screws to Vegas, beware!!! :)
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