Posted by Larry Mora on July 07, 2005 at 13:36:06:
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How to deal with the bank. - Posted by will(wa)
Posted by will(wa) on June 30, 2005 at 14:53:25:
I’m working with someone in my favorite park to “refinance” thier MH. I called the bank to talk with them about the pay off amount the loan and they are being very difficult. I asked them to send me the title after I pay it off and they refuse to do that. I know this can be done.
How have you experts been able to get the bank to send you the title ?
thanks,
will(WA)
Re: How to deal with the bank. - Posted by Tony Colella
Posted by Tony Colella on June 30, 2005 at 20:41:43:
It is not unusual that they will not send the title directly to you. The seller is their client and is still on title. The would prefer to deliver title to your seller so as to get out of the loop easily.
You may look into a power of attorney or perhaps someone to help you escrow the title. It is not wise to payoff the home and hope the seller gives you the title.
Try Steve-WA or John Merchant and see what they do in WA state.
Tony
Re: How to deal with the bank? - Posted by will (WA)
Posted by will (WA) on July 01, 2005 at 24:06:01:
Thanks for the reply Tony.
I’m really beginning the only way to go forward with this is after a signed POA.
Since I was unable to get very far over the phone I’m planning on going in person to the bank branch with my seller. I’m also hoping to use the branch as escrow, similar to what I’ve read in cashing in and as your suggestion.
I’m basically going wrap the loan pay off balance and some other bills that she owes, into another loan for her that I’ll finance.
I called the DOL but they were’nt understanding what I’m trying to do. Maybe it was too close to july 4th.
will (wa)
Re: How to deal with the bank? - Posted by Tony Colella
Posted by Tony Colella on July 01, 2005 at 09:34:27:
Will,
Your misuse of investing terms such as ?wrap? cause me a bit of concern as you may be misusing the techniques.
If you are wrapping a mortgage, you are NOT paying it off. It sounds as though you are loaning this woman actual cash to pay off the original home loan balance and some credit cards etc.
This is little more than a refinance and in many cases, these folks are nearly upside down on a property when you view it as an investor. Investor buy wholesale and as such, never want to have more of their cash into a deal than they can get out quickly, fireside type sale and still make a profit.
If you are simply looking to lend money, then you may make a small profit on interest but the collateral may be weak. You will loose all the benefits of investing, leverage, compounding etc. that makes a successful investor.
What you are doing appears to be lending only. Not a problem so long as you understand the difference and it takes you where you want to go. Most of us here would like to see you put the money to better use through investing but to each their own.
Tony
ps. For what its worth, if you do have access to a local branch, then having the title sent to someone there who can assist you directly with the seller would be the way to go. Since it appears you are simply refinancing the owner, you may need only apply to have your name listed as a lienholder after the bank releases their lien. You retain the title until it is paid off.
Re: How to deal with the bank? - Posted by will(wa)
Posted by will(wa) on July 01, 2005 at 11:27:11:
Hi Tony,
As always you’re correct, thanks for pointing out my misuse of the term wrap. Thanks for straightening me out, I’m am refincaning.
The owner of this place has the loan almost paid off, and got into a car accident, that’s when the bills piled up, and the bank is about to repo. She’s now back at work but still needs the low payments…enter me. I cash out the bank + my helping fee + interest rate = cash flow. The Yield on this isn’t a home run, but as I calc it will be 28%. The cost of this is no more than I’ve been buying SW G-Tree repo’s for but less labor, only a few hours phone and driving work.
Another reason is that I wanted to see if I could learn how to do this. If she stops paying then I repo it and sell again.
Thanks for the idea of applying for title change only that makes a lot of sense since I’m refiancning and she’s not selling it to me.
Re: How to deal with the bank? - Posted by bob imm
Posted by bob imm on July 01, 2005 at 21:56:25:
I think your message got srewed up on the listing. Please send again. Thanks
bob-PA