Real Estate ?

[topless]

How does someone with piss poor credit get an 875,000.00 home? I'm just wondering because there is this guy at work who claims he bought this house but he also says his credit is really bad. I know when he first started working here three months ago, he was on the phone all the time with some guy trying to get the guy to quick claim the house to him. Apparently he did but how does this work? Now he says he owns the home and this transaction took about 3 weeks tops. I'm confused here.

[LhcBrad]

Im guessing lots of lies and some luck.

[Ivan Dan]

Im guessing lots of lies and lots of luck.
Fixed that for ya! :D

[topless]

I'm thinking the lies part is what happened because he also claims to havew owned a 900,000.00 dollar home in Vegas and had some kind of killer job but wanted to move here to be closer to his wifes family. He says he found someone out there to take over his house payments. Something smells rotten if ya ask me.

[LhcBrad]

Fixed that for ya! :D
Thanks!!!

[LhcBrad]

Pretty easy. Just say you are JBB that might work!!

[dunaholic]

It's pretty easy. If the guy found someone that is in financial trouble and getting ready to foreclose then you have the current owner "Quit" claim the property to you by deed at what is owed on the note. Meaning that the guy took over payments on the house for what was/is owed (subject to the loan secured by a deed of trust). You're going to see a lot more of this going on in the near future as rates adjust more and more. Your cp-worker probably did not pay $800k for the property, he paid what was/is owed on the property. If you get me address I can tell what was/is owed on it. That will tell you what he bought it for.

[topless]

It's pretty easy. If the guy found someone that is in financial trouble and getting ready to foreclose then you have the current owner "Quit" claim the property to you by deed at what is owed on the note. Meaning that the guy took over payments on the house for what was/is owed (subject to the loan secured by a deed of trust). You're going to see a lot more of this going on in the near future as rates adjust more and more. Your cp-worker probably did not pay $800k for the property, he paid what was/is owed on the property. If you get me address I can tell what was/is owed on it. That will tell you what he bought it for.I know it was Quit claimed to him but how the hell is the loan turned over to him with no credit check?

[catman-do]

If the person was quit claimed on and then refinanced into his/her own loan at a low ltv, they can easily get an 850k loan. We have those loan amounts stated down to a 640 fico. However, depending on the lender and the system they use to underwrite the loans, there is a chance the guy can get the loan full doc even if he cant "technically" afford the payment. For example, if the loan was sold to Fannie and run through DU, then DU is a risk based algarithym program. There is NO ONE that knows exactly what DU will approve and deny because its not a set program. However, if they guy has a ton of assets then DU generally will issue some sort of approval, due to the fact that if he cant afford the payments one month, then he has a ton of assets he can resort to in order to make that payment. LP is another program that is risk based, almost identical to DU. Most subprime companies did not use these systems as their uw guidelines were credit based.

[catman-do]

I know it was Quit claimed to him but how the hell is the loan turned over to him with no credit check?
If there was no credit check then its a strong possiblity that the person was just deeded on title. Generally the scammers will have themselves deeded on, and will give the person with credit problems an option to either sell them the house at the amount secured against the property, OR they will opt to buyback the property from the scammer at a high dollar amount. Essentially they scammer, doesnt have any risk. He/She pays the mtg, so the bank wont come after the property. The person that originally owned it can get the house back for a fee, and if that fee is not paid then the scammer will not deed over the house to them again. If the person decides to let go of the house after the agreed amount of time, then the scammer gets the house to sell.

[Mandelon]

The lender may not have been notified. He bought the house from the seller and will continue to make payments on the outstanding loan.
Is this what a "wraparound" does? The current owner sells it, but doesn't tell the lender. They can change the ownership of the home at the county recorder or not. typically the lender doesn't find out, even if they do. The loan would have a due on sale clause, so if the lender finds out they could call the loan......
I bought a house this way once. The seller split, and I paid him an agreed upon amount. I recorded the house into my name with his Quitclaim deed. I made payment to the bank with cashiers checks, so no name was on them.
It worked for a couple years, until I was refininacing my own house, and the new lender called for a payoff on the rental to verify my credit...ooops. I got a due now notice from them....so had to refi it as well.

[topless]

The lender may not have been notified. He bought the house from the seller and will continue to make payments on the outstanding loan.
Is this what a "wraparound" does? The current owner sells it, but doesn't tell the lender. They can change the ownership of the home at the county recorder or not. typically the lender doesn't find out, even if they do. The loan would have a due on sale clause, so if the lender finds out they could call the loan......
I bought a house this way once. The seller split, and I paid him an agreed upon amount. I recorded the house into my name with his Quitclaim deed. I made payment to the bank with cashiers checks, so no name was on them.
It worked for a couple years, until I was refininacing my own house, and the new lender called for a payoff on the rental to verify my credit...ooops. I got a due now notice from them....so had to refi it as well.That must have been what he did because there were no loan docs, escrow nothing. As a matter of fact, this guy doesn't have anything (except a house now) He couldn't even buy a 4 year old Tahoe from any reputable dealership. He had to go to some place in Pomona where you put a down and have outragous monthly payments. If you are a second late, they come get your car. He bought the Tahoe 3 weeks ago and has those people calling him at work trying to get paid. He'll be walking pretty soon.

[Havasu1986]

The lender may not have been notified. He bought the house from the seller and will continue to make payments on the outstanding loan.
Is this what a "wraparound" does? The current owner sells it, but doesn't tell the lender. They can change the ownership of the home at the county recorder or not. typically the lender doesn't find out, even if they do. The loan would have a due on sale clause, so if the lender finds out they could call the loan......
I bought a house this way once. The seller split, and I paid him an agreed upon amount. I recorded the house into my name with his Quitclaim deed. I made payment to the bank with cashiers checks, so no name was on them.
It worked for a couple years, until I was refininacing my own house, and the new lender called for a payoff on the rental to verify my credit...ooops. I got a due now notice from them....so had to refi it as well.
This is what I did with my ex girlfreind who I bought a townhome with in the early 90's. She moved out and then got married a year later. I quit claimed it to her for some $$$. She couldn't refi because of it was upside down at the time. I thought she had done it, and I was free and clear. Turns out her and her husband stop making payments a year later and the house foreclosed. I found out about when applying for a credit card. Screwed me for 7 years. :mad:

[C-2]

Sounds like your employer doesn’t run background checks, eh?
Without writing a fawking book about the possibilities, it’s a scam he’s involved in. He doesn’t own shiat and is nothing more than a caretaker. The original borrower is still on the hook, and has also been scammed, or is in on the scam.
Most likely, nobody is paying on the note and it’s already in or facing foreclosure. Next is a series of BK’s to stall the foreclosure sale, and then another series of BK’s will follow when somebody shows up to evict your guy.
A Quitclaim Deed does not transfer title the same as a Grant Deed at the time of a sale. The person simply disclaims their interest, with no guarantee on title. It transfers title subject to all open loans and liens. A lender will call them on it, but their remedy is foreclosure, which probably already existed.
Your guy was probably barred from filing BK in Vegas, so now he’s doing it here.
Sadly, your employer is up the creek because where there’s smoke, there’s fire. But current employees enjoy exploitable FCRA rights if the employer decides to investigate further, so they probably won’t do anything to avoid the liability of being sued by him for wrongful termination. Document workplace violations then can his arse.

[boatsntoys]

The lender may not have been notified. He bought the house from the seller and will continue to make payments on the outstanding loan.
Is this what a "wraparound" does? The current owner sells it, but doesn't tell the lender. They can change the ownership of the home at the county recorder or not. typically the lender doesn't find out, even if they do. The loan would have a due on sale clause, so if the lender finds out they could call the loan......
I bought a house this way once. The seller split, and I paid him an agreed upon amount. I recorded the house into my name with his Quitclaim deed. I made payment to the bank with cashiers checks, so no name was on them.
It worked for a couple years, until I was refininacing my own house, and the new lender called for a payoff on the rental to verify my credit...ooops. I got a due now notice from them....so had to refi it as well.
A sneaky way to do it is, instead of giving the seller cash and making the payments without telling his bank you bought it. Is to give the seller the money in a second TD. Then foreclose on the second TD. That way the first lender can not call for a pauoff. They have to let the holder of the second keep making the payments on the first, and the house goes into your name and I understand the first can not call the loan.

[boatsntoys]

A sneaky way to do it is, instead of giving the seller cash and making the payments without telling his bank you bought it. Is to give the seller the money in a second TD. Then foreclose on the second TD. That way the first lender can not call for a pauoff. They have to let the holder of the second keep making the payments on the first, and the house goes into your name and I understand the first can not call the loan.
I did it, not intentional once. I bought a 2nd. TD about 10 years ago for investment. The guy quit paying me, so I foreclosed. Rented the house out for 4 or 5 years. The first was well aware I was foreclosing because they were also. I had to cure the first and bring it current to stop their foreclosure and pay the taxes, evict the guy etc. etc. but I got the house and the first never said S--t. Took my checks with my name, even mailed me the tax forms at the end of the year in my name. I made at least 20,...... 30 , 60 and 90 day late payments on the loan. Kept that guys credit bad a few extra years. Never affected my credit at all.

[C-2]

A sneakie way to do it is, instead of giving the seller cash and making the payments without telling his bank you bought it. Is to give the seller the money in a second TD. Then foreclose on the second TD. That way the first lender can not call for a pauoff. They have to let the holder of the second keep making the payments on the first, and the house goes into your name and I understand the first can not call the loan.
Let's see what OC28 Heat has to say about dat...
It's a scam to siphon off money from unsuspecting owners and tenants, otherwise they would just buy the house on better terms.

[boatsntoys]

Let's see what OC28 Heat has to say about dat...
It's a scam to siphon off money from unsuspecting owners and tenants, otherwise they would just buy the house on better terms.
definately a scam:D

[C-2]

definately a scam:D
And that's why there is title insurance :)

[C-2]

True story;
This scammer and his crew forcefully took possession of a REO house overlooking the bluffs in Playa Del Rey – directly across the street from Dr. Jerry Buss (owner of the Lakers). Nice neighborhood with other neighbors similarly situated.
The scammers were thugs, attracted thugs, and also had other elicit businesses (they were also radical, bigoted Muslims who hated whitey and any other non-black race).
But after screwing the banks over for several yeas, these guys had there scam down and were pretty good. In this case, it wasn’t really a scam, just nice digs to help perpetuate their image and attract suckers into their other scams.
We would show up to lock them out, and they always had a new BK filing, a state court TRO against us, or the Sheriff would not show up at all. Eventually the US Postal Inspectors and FBI got involved.
After that, every time we would go to lock them out, the FBI, US Postal Inspectors, LAPD and Sheriff’s Deputies would show up, trying to get their hands on the kingpin. On at least 2 occasions, there was also news media there since this guy also made it a race case. It was a spectacle to see all those LEO cars lined up and down the street.
But we never locked the guys out; they always had some BS document which made everybody nervous enough not to go forward. This went on for 1.5 years.
So one day we got a call from the bank – the property had been sold cash to an unknown buyer. Case closed. So while I was in the area on another case, I stopped by the property and yup, it was empty.
I chatted with one of the silver-spooned punks who said the neighbors got so sick of everything, they grouped together, formed a shell company and bought the house cash. As soon as title cleared, they mad e a few phone calls, and called in a Samoan wrecking crew who went in and literally cleaned the scammers the fawk out in a manner of hours.
The kingpin, a smooth talking, well-dressed man about 60 years old, eventually went to prison for 7 years for BK fraud. But eeee gads – seems it didn’t do any good – I saw his name on another scam a few days ago.:mad:

[OC28HEAT]

Let's see what OC28 Heat has to say about dat...
It's a scam to siphon off money from unsuspecting owners and tenants, otherwise they would just buy the house on better terms.
Due on sale clause or the industry calls it unconsented transfer. They are even forecloseing now when someone transfers a current loan into their own corp.
The latest scam we have been seeing is a borrower signs a deed of trust as a junior lien on the property and then the junior lien files BK. This stalls the foreclosure sale because in theory the junior lien shows this as an assett in BK court so the first mortgage lender must get releif from the automatic stay.
similar to the 1 percent transfers we saw last time areound

[OC28HEAT]

I did it, not intentional once. I bought a 2nd. TD about 10 years ago for investment. The guy quit paying me, so I foreclosed. Rented the house out for 4 or 5 years. The first was well aware I was foreclosing because they were also. I had to cure the first and bring it current to stop their foreclosure and pay the taxes, evict the guy etc. etc. but I got the house and the first never said S--t. Took my checks with my name, even mailed me the tax forms at the end of the year in my name. I made at least 20,...... 30 , 60 and 90 day late payments on the loan. Kept that guys credit bad a few extra years. Never affected my credit at all.
We have junior lienholders that cure the first all the time they just want to know the intent of the junior once the junior sale is completed the give around six months for a sale to occur or for them to payoff

[talkinghead]

I guess I just don't understand the whole real estate thing, because me and my wife can barely qualify for loans that we can afford and we have perfect credit. Oh well, I guess that's why so many people are losing their homes.
I'm with you on this - I have good credit (high 700's), good income, reasonable bills. And yet all I ever get is a hard time when I try to get a new loan for a bigger house (Wells Fargo).
I know of people who have bad credit, job instability and they get anything they want, no problem.
Me? It's like the inquisition.

[C-2]

I know of people who have bad credit, job instability and they get anything they want, no problem.
You can get financed too - it might cost you more if you have bad credit, but it's still out there. (oops, meant to say even if you had bad credit, with your scopres you should be good to go)
I'm sure with a decent loan broker you you cfan find a loan rather quickly - heck, didn't the rate go down to under 6% this week? It might cost a few points for a broker - but a better rate and better home over the year might be worth it.
Anybody with money over the next few years is poised to capitalize on this market :)

[C-2]

We have junior lienholders that cure the first all the time they just want to know the intent of the junior once the junior sale is completed the give around six months for a sale to occur or for them to payoff
Thanks for setting us straight (again). :)

[hoolign]

Pretty good con artist if ya ask me. Since your goverment is ready to bail out people who can't make their mortgage..with taxpayers money what does he have to lose?? He's got the system figured out!

[Mandelon]

Pretty good con artist if ya ask me. Since your goverment is ready to bail out people who can't make their mortgage..with taxpayers money what does he have to lose?? He's got the system figured out!
That's not what the bail out program is.....:rolleyes:

[OC28HEAT]

I didn't mean to imply that we can't get a loan, we can pretty much sign for anything we want. My credit score is the same as yours and my wife's is in the 800s. But, like you said, the inquisition. I know people with sub 600 credit that decide to buy something and two days later they're done. :D I took me like 3 weeks to buy a $40,000 truck that I was preapproved for. :D
What you will see is that banks don't like to lend to people that don't need money. When I was in serviceing my boss always told me that you needed 3.5 % of your portfolio past due . That way you would get late charges and orther fees over and above the interest. It is not profitable to lend money to people that pay their bills. I pay my cards off every month. they get no interest from me. they only get the transaction fees from the sale merchant. When I buy a large ticket item I do the one year same as cash and then I send them a check every month for the amount borrowe divided by 11 so it is paid off in 11 months interest free money.