NEED ADVICE!!! - Posted by MasonNV

Posted by Beldorian on November 24, 2000 at 09:26:29:

The guys name is Bill Gatten.
Website is

Hope this helps!

NEED ADVICE!!! - Posted by MasonNV

Posted by MasonNV on November 23, 2000 at 19:54:17:

Happy turkey Day everyone –

Got a call from my mother in law (real estate agent) this morning about a lady who is desperate to sell for all the right reasons…cant afford mortgage, divorce, recent deal just fell through. Basically the property will go into foreclosure unless I am able to do something about it.
The sellers arent expecting a dime, they just need to get out from under it. Although they owe as much as its worth, I am looking for a house for myself, and if I can get in for 1,000 bucks or so, this would work perfectly.

The seller owes 132K and the property comps for 135-145k

the issue is the lender (Home Side Mortgage) there was a period of time where the owner went into default, they restructured the mortgage so that she pays a payment and a half every month starting next month. Although I can afford 1200 a month…1800 is out of range for me. Being that I am the last chance for this property, how do I approach the mortgage company to negotiate a possible loan transfer? As I see it the mortgage company has two options…deal with me, or foreclose…and seeing as how the property has no equity, they’ll probably loose if they foreclose. I think I have a good chance of getting them to the table. I dont want them to get crazy about checking me out financially either…I am a waiter in Vegas, so most of my income is tips, and there is a big gap in what a lender thinks I can afford, and what I really can.

Any ideas on this one??? Remember, I’m buying for myself not for my business.

Also properties in this area are appreciating at about 7-10% a year, so I know its a good long term investment. What do I do next???

I thought about PAC trust, and take over payments, but then the seller told me that her payment will be going to 1800 a month in the future…thats why I think I need to approach the lender to make this deal work.

Thanks in advance for your thoughts!

Take Care,

Re: NEED ADVICE!!! - Posted by Greg

Posted by Greg on November 23, 2000 at 22:07:51:

Hi Mason,

I’m still learning the PACTrust, but I can give you the address that will help you the most. Go to: Post your situation there and see what kind of answers you get.

A couple of points:

  1. when you say you can afford $1200 yourself for a monthly payment, is that what you can afford for “rent” or is that what you can afford for a house payment after taking into account the tax benefits? You might be able to handle the full $1800. Talk to your tax consultant to be sure.

  2. I do not know what the complete story is with your sellers, would they be willing / able to “kick in” $200 - $600 a month until the payment drops to back to its normal level?

Just a couple of thoughts,


Re: NEED ADVICE!!! - Posted by Jim IL

Posted by Jim IL on November 23, 2000 at 21:49:36:

All I can say is be CAREFUL dealing with Homeside Lending.
Feel free to e-mail me off the board and I’ll pass along some names to stay away from. (or give you my phone number and talk to you about this lender.)
I just GAVE BACK a “subject to” deal I was working because of problems Homeside was causing.
What a nightmare!
Take care and happy Turkey-Day,
Jim IL

Well, PACTrust & Next… - Posted by Beldorian

Posted by Beldorian on November 23, 2000 at 20:15:25:

Hey Mason,

Hope all is well with you and yours today.

I think that you are right, it’s a PACTrust deal…I am working a deal right now that is very similar. Also, I desperatley need to find a place to live. My wife and two children ages 1 & 3 are spending Thanksgiving in a hotel room. Also, unless things change we will probably still be here in this stinking hotel room for Christmas.

However, there are some deals that you need to do as investments, regardless of the personal situation that you are in. This deal I am working will be a PACTrust for a resident beneficiary other than me.

I think that you could PACTrust this deal get somebody else in who can afford the pmts, and you find a different deal that you can afford.

However, there may be somebody here who has more experience with negotiating short sales… which is what I think you are probably looking at here, if you try to negotiate with the primary lender.

Best regards.

Re: Well, PACTrust & Next… - Posted by MasonNV

Posted by MasonNV on November 23, 2000 at 20:18:27:

however the problem is that 1800 dollar a month payment. If we did this PACTRUST the loan would have to be restructured…I dont know of anyone who wants to pay 1800 a month on a 135k home…its almost insane…

Thanks for the response Beldorian…

Good luck on your hunt.


Okay, another option - Posted by Beldorian

Posted by Beldorian on November 23, 2000 at 20:28:25:

I would have the woman ask the lender what amount of money it would take to bring the loan current. That would be your out of pocket expense. Then have her get a letter from the lender to that effect. i.e. Lender agrees that if they receive all arrearages(sp) they will reinstate the original loan pmt of 1400.

Also, another thing to consider. I would imagine that this lender is escrowing T&I. So, you may be surprised what ppl would pay in a PACTrust scenario for pride of ownership, appreciation benefit, Tax deduction, equity split. Make sure when you advertise an overencumbered property that you say, “1350/mo + Tax & Insurance”

I agree that in most areas you will have a hard time finding such an individual…a person who could afford a $1800/mo payment, may be fairly sophisticated, however, with No bank qualifying and no down payment, etc…people should be willing to pay a premium for this…

Ah well…good luck

Re: Okay, another option - Posted by MasonNV

Posted by MasonNV on November 23, 2000 at 21:29:04:

I need info about the PACTrust…where do I learn to set these things up??? This seems to be something that works and people are using right? Where can I get some Pros and Cons on the whole thing? And who do I call to learn how this works?
Thanks for your help!!