HELP ON FIRST DEAL - Posted by fsu1(N.FL)

Posted by Randall Porter on June 26, 2001 at 10:13:35:

This sounds like a loan that was either orginated or insured by the Farmers Home Administration(FmHA), now know as Rural Development. The monthly payment is based on the borrowers income, and the difference between the fully amortized payment and the actual payment made by the borrower is added to the back end of the loan. In other words, this is a loan that has negative amortization. If this loan is a Rural Development loan, there is really nothing you can do to make this deal work, other than going to the Sheriff Sale and bidding on it then. Here in Ohio, Rural Development does not even bid on these houses at the Sheriff Sale. Whoever is the high bidder at the sale ends up with the house.

HELP ON FIRST DEAL - Posted by fsu1(N.FL)

Posted by fsu1(N.FL) on June 26, 2001 at 09:53:23:

Hello All

I got a resonse to my ad today.

Its a woman who bought a house through a first time buyer program with some type of federal assistance. The house is a year old.

She bought in Feb for $100k
3 BR, 2 BA
Area where I can owner fin. pretty easily

Fed Govt. Program loan is $395/mo she is 3 mo. behind

Peoples First gave her the remainder of what she needed to buy the house. NOT a second mortgage. $158/mo. she is 4 mo. behind

No mention of foreclosure yet.

She is motivated

Im not sure if there is a deal here or not, nor how to structure it if it is. I just got the Bronchick course. I have gone through it once, but am not able to do this alone yet.

All help is appreciated.