Offering loans to lis pendens OwnerSS???? - Posted by Tommy

import · February 27, 2005, 2:12pm

Posted by Rich[FL] on February 28, 2005 at 11:35:56:

Let’s see here…you’ve found people who can’t pay the bills they have now (they’re in foreclosure) and you want the lend them more money? What makes you think they’ll pay you? What if they pay you with your small second but fail to pay the 1st? Than what will you do? You can’t foreclose because they’re current with you; what now? When the first forecloses, your interest (loan) will be wiped out. Now what?

Don’t make their problems yours. Never loan money to people who have demonstrated they can’t, or won’t, pay their obligations. Depending on how much equity is available, have them deed you their house subject-to and bring the loan current at that time. Or, attempt to work a short sale with the bank.

Sounds like you need to do some more studying here; or go ahead and learn from the school of hard knocks.

Good luck!

Rich

import · February 27, 2005, 2:12pm

Offering loans to lis pendens OwnerSS??? - Posted by Tommy

Posted by Tommy on February 27, 2005 at 15:12:48:

how does this sound?. I have two people that want me to loan them money to catch up on there lis pendens. If i offer them second mortgage/loan to catch up on their payments, and the contract states that after 30 days late i can take over the first and forclose? is this the best way to handle these two borrowers. or is there a better way to protect my interest in the property?
thanks

Tommy

import · February 28, 2005, 7:21pm

Offering loans to lis pendens OwnerSS??? - Posted by Bill H

Posted by Bill H on February 28, 2005 at 20:21:57:

I agree with Rich(FL)…there are toooooo many things that can go wrong here…they are under duress…etc…lots of problems you could run into.

PASS

Good Luck,
Bill H