- 1 CREATIVE FINANCING OVERVIEW
- 1.1 15605 Cascadian Way Bothell WA
- 1.2 18809 65th Place W Lynnwood FHA Rehab Loan
- 1.3 Brook
- 1.4 Co-Brokerage Listing Addendum
- 1.5 Call A Real Estate Attorney BEFORE You Buy or Sell
- 1.6 Buy Real Estate In Partnership
- 1.7 How Much Is Your House Worth?
- 1.8 JRDeal-NewZ-12-13-17 CDC Manipulated Results Anthrax Vaccine Sickens Soldiers
- 1.9 Puget Sound Market Prices Up
- 1.10 Questions To Ask Before You Buy A Home
- 1.11 Prince Did Not Have A Will – Do You?
- 1.12 The Foreclosure Train Rolls On
- 1.13 Dodd Frank and Seller Financing
- 1.14 Buy This Book – Chain of Title
- 1.15 You Need A Lawyer When Doing A Modification
- 1.16 Mortgage Modification Successes
- 1.17 For Sale By Owner
- 1.18 Banks Losing Right to Require Arbitration
- 1.19 Bothell Real Estate Attorney
- 1.20 Real Estate Attorney And Real Estate Broker
- 1.21 Author
- 1.22 Buyers With a Good Down Payment But Poor Credit
- 1.23 Seeking Lease Option and Contract Sellers
- 1.24 Let Freedom Ring – Song
- 1.25 Underwater Properties – Short Sales – Modification
- 1.26 Condo Dues – Short Sale Then Bankruptcy
- 1.27 Open Telephone Line
- 1.28 Blacks Against Mandatory Vaccination
- 1.29 $5,000 Principal Reduction
- 1.30 Services We Offer
- 1.31 Door-To-Door Transit
- 1.32 Seller Financing – The Original Financing
- 1.33 I Help Brokers Do Seller Financed Deals
- 1.34 Lease-Option Deals Open Doors
- 1.35 Helping Other Brokers
- 1.36 Servicers Make More Money By Modifying Than By Foreclosing
- 1.37 Zombie Foreclosures
- 1.38 New Federal Rules on Foreclosure
- 1.39 Washington MERS Suits Fail
- 1.40 Modification on Rental
- 1.41 Making Home Affordable Continues
- 1.42 Rental Property Modification
- 1.43 $157,105 Wells Fargo Principal Reduction
- 1.44 Wells Fargo – 3 Year Modification
- 1.45 Principal Reduction Modification
- 1.46 Deceptive Practices in Foreclosures
- 1.47 Low Modification Approval Rate
- 1.48 Renters’ Rights in Foreclosure`
- 1.49 Eminent Domain To Modify Loans
- 1.50 Fannie and Freddie Loosen Modification Guidelines
CREATIVE FINANCING OVERVIEW
Since 2008 it has been harder than ever before to get financing.
The solution is not to get new financing, instead to use the seller’s existing financing. Do a lease-option or a lease with commitment to purchase or a wrap-around deed of trust transaction.
Bear in mind that you must comply with Dodd Frank restrictions on seller financing. These restrictions apply whether the deal is a recorded wrap-around deal or an unrecorded lease option deal. To be on the safe side, consult with an attorney who has studied Dodd Frank and a mortgage broker.
in 1980, when interest rates were the highest ever. Vietnam War deficit financing had pumped up the economy. Nixon had taken the country off the gold standard in 1971. The price of oil had gone through the roof. There was inflation at 13.5% per year and recession at the same time. It was called “stagflation.” Paul Volker took a sledge hammer to the economy, raising interest rates to the point where Jimmy Carter lost the election and home mortgage rates were in the teens.
People wanted to sell their homes, but buyers either could not qualify for mortgages at such high interest rates or were not willing to do so. Millions of sellers had old 3%, 4%, and 5% mortgages, and inventive real estate agents and lawyers figured out ways for buyers to assume sellers’ mortgages formally or informally. In some cases the mortgages had due-on-sale clauses in Paragraph 17 (renumbered today to Paragraph 18). A due-on-sale clause says that if the seller sells the property the bank can call the loan due. However, many state cases around the country held that due-on-sale clauses were void as restraints on alienation because they were practical impediments to resale.
I went into partnership with a Seattle attorney in 1980, and we were very busy rewriting and closing seller-financing transactions. Title companies and escrow companies were unwilling to close the transactions, and so we escrowed them ourselves.
Assume a $100,000 property (typical price back then) with a $60,000 deed of trust against it and a buyer with $30,000 in cash. The buyer would pay $30,000 down and give the seller an all-inclusive, wrap-around deed of trust for $70,000 that wrapped around and included the underlying $60,000 deed of trust. The buyer would make payments to the seller, and the seller would make payments to the lender. There would be a cash out in five years. Often we set up a collection account to handle the money, hold the original note and reconveyance, and give the seller notice if the buyer was not paying on time. Sometimes we got consent from the lenders. Sometimes we did not even ask for consent.
Then in 1984 Congress federalized the law of due-on-sale and preempted all state cases and statutes on the subject. Banks could enforce their Paragraph 17 or 18 due-on-sale clauses and call loans due if there was a change in ownership. The bank had to give 30 days notice, and if the balance was not paid in full or the property was not deeded back to the seller, then the bank could conduct a foreclosure, a process that typically takes six or seven months. In the agreements we wrote, the buyer and seller agreed what they would do if the lender called in the loan.
There were exceptions to the new rule: The bank could not call in the loan if a parent deeded to a child, or a spouse deeded to a spouse, or if a borrower put title into the name of a trust and there was no change in possession.
How does this relate to the present? Although interest rates are relatively low, it is still difficult for borrowers to get financing. That difficulty has had a significant impact on the current stagnation in sales and the drop in property values.
Maybe it is time for buyers and sellers to rebel. My experience is that lenders do not want to take properties back and will consent to wrap-around sales, provided that the seller is not released from liability. The banks have too many properties in their portfolios and mortgage insurance companies are being stretched financially.
I am ready and willing to set up and close wrap-around deed of trust transactions. The method I use is this: I either get the lender to agree to waive enforcement of the due-on-sale clause, or I get buyer and seller to acknowledge there is a risk, and I define the risk. I get the buyer to agree that if the lender calls the loan due, that the buyer will either refinance or resell the property.
What kind of buyer would be a likely candidate for a wrap-around sale? If I can get the lender to consent to the wrap-around, then any buyer would be a likely candidate.
If I cannot get a response from the lender or if the lender refuses to give consent, then the buyer candidate would be an investor or a person who could tolerate a certain level of risk, perhaps a person with sufficient assets who could refinance or re-sell the property if necessary. Every transaction would be handled differently.
If the parties have some concern about the bank possibly foreclosing, the deal can be structured on a lease-option basis.
Bank regulators should require banks to allow buyers to take over sellers’ existing mortgages in order to spur home sales. Due-on-sale clauses should be disregarded and assumptions and wrap-around sales should be allowed until the housing and mortgage markets return to normal. Click here to read the letter I wrote President Obama regarding this issue.
Until such change is made, buyers and sellers can be creative and “go around” due-on-sale clauses.
James Robert Deal, Broker and Attorney
Broker with Agency One Realty LLC
WSBA # 8103, DOL # 39666
James at James Deal dot com
15605 Cascadian Way Bothell Washington. $502,500. Buy on FHA Rehab Loan. Zoned for 5-plex. Excellent long term investment. James Robert Deal, Attorney and Broker, 425-774-6611.
18809 65th Place West Lynnwood Washington, buy on FHA Rehab Loan
Build your own home, custom construction, on this $495,000 lot, 1.75 acres in size. The property at 13931 Cascadian Way is 152 feet wide and 499 feet deep. It is 75,840 square feet in size. The property features a private meadow, a private forest, and a private brook. You can hear the brook from your bedroom window.
As both a real estate attorney and a real estate broker, I co-broker with other brokers, helping them to take more listings and service them better. This provides better service for sellers.
Call a real estate attorney BEFORE you buy or sell property. Call Attorney James Robert Deal at 425-774-6611. In many cases I offer a flat fee, payable at closing out of escrow.
If you do not have enough income to qualify to buy a home, join together with several others. But a larger home, big enough for several families. With multiple incomes you can qualify. If you want privacy you can jointly buy a tri-plex or a four-plex. These can be bought with an FHA loan with only 3.5% down.
What is your Washington home worth? Click here to find out.
JRDeal NewZ JAMES ROBERT DEAL Political Activist - Real Estate Attorney - Real Estate Broker 425-774-6611 December 3, 2017 Read Online at: https://www.washingtonattorneybroker.com/jrdeal-newz-12-3-2017 DR. THOMPSON OF THE CDC ADMITS TRASHING DATA IN 2004, REVERSING...
Home prices in Seattle have doubled over the past five years.
Questions to ask before you buy a home.
Prince died without a will. Do not make the same mistake.
Private corporations such as Loan Star and Caliber bought thousands of mortgages. The government pays them to modify mortgages, but they are quick to foreclose. They invest in high value instead of low value homes. They should be required to serve the interest of the local neighborhood as are banks. They should be regulated as banks.
There are seller financing restrictions when the buyer is going to live in the property.. No cash out less than five years. The rate must be fixed for the first five years.
Chain of Title How Three Ordinary Americans Uncovered Wall Street’s Great Foreclosure Fraud Purchase hardcover — $27.95 Available: April 2016 Hardcover 6 1/8 x 9 1/4 , 400 pages ISBN: 978-1-62097-158-1 Also available as an e-book David Dayen David Dayen is a...
You should be represented by an attorney when you are modifying your mortgage. Servicers break the rules.
Most of our clients are people who tried to modify their loans on their own and failed. Mortgage modifications are tricky. There are procedures which must be followed. When you do something wrong, the servicer does not tell you what you are doing wrong. The servicer...
James Robert Deal, Attorney and Broker, assists for-sale-by-owner buyers and sellers. Call 425-774-6611 or 888-999-2022.
CFPB may allow consumers to sue banks and file class action cases. Banks will not be able to hide behind mandatory arbitration.
I am a real estate attorney serving Bothell, Washington. Contact me at 425-771-1110 or 888-999-2022.
James Robert Deal is both a real estate agent and a real estate attorney practicing in Lynnwood Washington. If He is your broker, he does not charge extra for legal work related to your transaction.
What To Serve A Goddess When She Comes For Dinner Welcome To My Book I highly recommend it. I had a lot of fun writing it. My book has 464 page book. It is 8.5″ x 11″ in size. It weighs three pounds. It is a beautiful book. It comes autographed. I can autograph it...
If you are a would-be buyer who has a good down payment and good income but poor credit, I am willing to help you buy property on a lease-option or contract basis. James Robert Deal, attorney and broker. 425-771-1110
Seeking Lease-Option and Seller Contract Sellers Open Phone Line to Brokers, Buyers, Sellers 425-774-6611 - 888-999-2022 I am working with several buyers who have strong income and good down payments but who have bad credit and cannot get financing. These buyers...
Let Freedom Ring – a song by vaccine rights attorney Allan Phillips.
James Robert Deal, real estate attorney and real estate agent, handles mortgage modifications and short sales.
Deal with unpaid condo dues by short selling the condo and going through Chapter 7 bankruptcy.
James Robert Deal, Attorney and Broker, in Lynnwood Washington
African-American community rages against manditory vaccination in California and the Tuskegee-like crimes of mandatory vaccines that destroy black babies' lives http://www.naturalnews.com/050038_SB277_vaccine_mandate_Tuskegee_medical_experiments_African-Americans.html...
Republicans want to put an end to HAMP and Making Home Affordable.
We have an open telephone line to brokers, buyers, sellers, and clients in general who may need help with buying or selling real estate or who may need help with mortgage modification. Services we offer: Help to Brokers, Co-Brokering Escrow Setup Lease Option Deals...
Door-To-Door Transit: The Only Solution To Our Traffic Nightmare by James Robert Deal, Attorney Traffic is bad and getting worse, and there is no solution in sight, as one would conclude from reading Eli Sanders’ “Welcome to Town, Here’s Why You’re Stuck in Traffic”...
AN ABBREVIATED HISTORY OF CREATIVE FINANCING The first forms of financing was seller financing. The buyer would buy personal property or real property and pay the seller on an installment basis. Over time lending houses grew up, and purchase mortgages developed....
Attorney James Robert Deal helps brokers structure seller financed real estate transactions.
LEASE-OPTION AND LEASE PURCHASE DEALS A lease-option or lease-purchase deal is a form of seller financing. With the lease-option deal, title stays in the seller until the buyer refinances or resells or otherwise pays off the seller. The wrap-around deed of trust deal...
I am a real estate broker and a real estate attorney. I help buyers, sellers, and other brokers throughout Washington. Call me at 425-774-6611 when your purchase or sale involves legal issues. I can often quote a flat fee payable at closing.
Thanks to Martin Andleman and Mandleman Matters Why Does Ocwen Want to Modify Loans? Answer: Because they profit by doing so. In case you haven’t noticed, over the last month or so there’s been an ongoing debate of sorts happening on Mandelman Matters as to whether...
CFPB: Zombie foreclosures hurt borrowers The Consumer Financial Protection Bureau is keeping an eye on “zombie” foreclosures, which it worries cause “direct borrower harm,” according to a CFPB executive. Zombie foreclosures occur when a bank starts the foreclosure...
New Federal Rules on Foreclosure —By Erika Eichelberger - Thanks to Mother Jones On Thursday, the Consumer Financial Protection Bureau, the federal consumer watchdog set up by the Dodd-Frank financial reform bill, announced a new set of foreclosure-prevention...
Judges Dismiss MERS Suits By Evan Nemeroff Two borrower-initiated lawsuits alleging that the Mortgage Electronic Registration Systems role in the plaintiffs' deeds of trust caused them injury were both dismissed by federal judges in the Western District of Washington...
It is harder to get a mortgage modification on a rental property than it is on an owner occupied property. The rules are not as clear. You need a higher income to qualify for a rental modification because you have to be able to cover your home mortgage. Nevertheless,...
HAMP continues aiding borrowers Three firms still fall short in meeting servicing goals. Thanks to Housing Wire. Kerri Ann Panchuk December 9, 2013 4:48PM Bank of AmericaCitiTreasuryHome Affordable Modification ProgramHAMPhomeownersObama AdministrationHousing...
This is a rental property modification. Ocwen was the servicer, and the investor was Washington Mutual and now Chase. The owner quit paying for 20 months, and the balance rose to $254,000. The interest rate was already under 3.0%, because this was an adjustable rate...
JS is a hard working taxi driver. He came to us after a financial hardship, including a divorce. Ocwen is his servicer, however, the important fact is that Wells Fargo is the investor, the owner of his mortgage. Wells Fargo gives principal reductions because it was...
It is a long story, which I will tell later. For now I will just share the link with you and tell you that this modification took three years to complete. Here is the link:...
We just negotiated this excellent modification with Bank of America. The interest rate was reduced to 2.0%. The principal balance was reduced by $131,000....
Deceptive Practices in Foreclosures Thanks to the New York Times September 13, 2013 In early 2012 when five big banks settled with state and federal officials over widespread foreclosure abuses, flagrant violations — including the seizure of homes without due process...
This post comes from Martin Andelman. The low approval rate on modifications Martin discusses is the main reason why you should hire an attorney to do your modification. Our success rate on modifications is much higher, around 80%. Of course, part of the reason why...
Renters in Foreclosure: What Are Their Rights? Federal law gives important rights to tenants whose landlords have lost their properties through foreclosure. Renters and tenants are now being affected by foreclosures almost as often as homeowners. The financial...
A City Invokes Seizure Laws to Save Homes Peter DaSilva for The New York Times Thanks to New York Times. Robert and Patricia Castillo paid $420,000 for a three-bedroom, one-bathroom home in Richmond, Calif., in 2005. It is now worth $125,000. By SHAILA DEWAN...
FHFA expands suite of loan mod tools By Kerri Ann Panchuk • March 27, 2013 • 9:00am Servicers dealing with loans guaranteed or owned by Fannie Mae and Freddie Mac will soon be required to offer eligible distressed borrowers ways to lower their monthly payments if the...