Payment Options On Contract

Hi,

I am brand new and have many questions.

When submitting a contract to the seller, is it good to put some creative financing options along with a cash offer for them to consider?

Is this even something a wholesaler should concern themselves with?

Is the end-buyer then bound by this and would it make the contract harder or easier to sell?

Comments(2)

  • bgrossnickle7th June, 2006

    Quote: We really would like an investor who will be able to help people reinstate loans and/also buy them out.

    You will have a hard time getting loans to reinstate. I contact many people in foreclosure and have only heard of one time where someone was lending a person the money to reinstate. Obviously the loan will be in second, or third, or who knows what position. Most people in foreclosure have already tried every avenue. An investor would only do it if there was a ton of equity and then he is probably only going to make his money on the points. So how much money can you make with 5 pts on a 25k loan?

    To buy them out and become the new lender you have to be very careful. There are really tight laws in FL on high interest loans for the first mortgage on a homestead property. My hard money guy will not lend to owner occupied properties - at all. The new loan has to be in the best interst of the mortgagor and has to be based on what he can afford, not on the equity of the property.

    I am getting ready to nail a lender right now on a property that I took Subject to. He gave this guy a 5 pt, 18% interest loan with a prepayment penalty. The mortgagor has no verifiable income, the mortgage did not have the required high interest loan disclaimer, there was a prepayment penalty without the option of a mortgage without prepayement, and on and on.

    Federal Trade Commission - High-Rate, High-Fee Loans (HOEPA/Section 32 Mortgages)
    http://www.ftc.gov/bcp/conline/pubs/homes/32mortgs.htm

    Florida Fair Lending Act 2002-57
    http://www.flsenate.gov/cgi-bin/view_page.pl?Tab=session&Submenu=1&FT=D&File=sb2262.html&Directory=session/2002/Senate/bills/billtext/html/

    15 USC 1602 aa - Definition of High Cost Loan
    http://www.washingtonwatchdog.org/documents/usc/ttl15/ch41/subchI/ptA/sec1602.html


    BTW - what is your angle in getting someone else to reinstate or payoff the mortgage. Would they give you a finders fee?

  • bradfordtm13th June, 2006

    Bump. Anyone with experience in fire damaged rehabs?

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