Posted by Jim V on June 20, 2001 at 01:49:54:
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Send Me $3,000 If you plan to use this info… - Posted by Houserookie
Posted by Houserookie on June 19, 2001 at 10:28:56:
Several days ago I mentioned a special program that will help sellers pay off back payments, and in emergency situations. The program will also help sellers get back on their feet upto 6 months from the time of qualification.
There were some honest arguments as well as distasteful criticism when I brough it up. Here it is…
Btw…I’m still waiting for my $3,000 from the person that screamed out SCAMMMMMM.
EMERGENCY PUBLIC ASSISTANCE OF MINNESOTA PROGRAM ( Anybody want to move here? )
There are three emergency programs that one can qualify. An emergency must involve a situation that:
Threates the life, health/safety of a person or familh.
The person/family are unable to resolve crisis themselves
The emergency program must resolve the crisis.
Emergency program funds can be used for any of the following:
Eviction:
Defined as:
1- An unlawful detainer
2- Property condemnation
3- A statement from a landlord, caretaker, owner, manager, or whom the person/family is staying
Mortgage Foreclosure
Emergency Assistance can be considered if a mortgage company or “contract holder of a house” purchased contract for deed is threatening foreclosure. THE HOUSE MUST BE IN THREAT OF FORECLOSURE AND NOT JUST BEHIND ON MORTGAGE PAYMENTS.
To qualify one must:
Have paid 40% of gross income towards their mortgage in past 12 months.
Used at least 50% of net income for things essential to a household in last 60 days.
UTILITY SHUT OFF
A person or family that is threatened with electricity, gas, or water being shut off.
Household must have paid at least 8% of gross income
towards utility in past 12 months.
MAJOR HOME REPAIR
Emergency assistance may be considered for the following:
Pluming
Electrical
foundation
roof
furnace
water heater
Repairs must be done by licensed and bonded repair company.
MOVING EXPENSES
Emergency assistance can be used for the following:
Moving expenses
U-hual or similar rental
Help from freind or family member
( moving expenses must not be for movings things to storage )
DIVERSIONARY PROGRAM
This program is for person/family unemployed. This one time grant is equal to four times the Emergency funding program. Funds may be used for:
Car Repair
Daycare
Medical Expenses
And shelter help
There are no income or assets limits to qualify for Emergency assistance. However, any income, assets, bank accounts, and other readily available resource need to be used to resolve the crisis.
Okay folks, how can we help people take advantage of these types of programs? While profiting a little doing it.
Thanks
HouseRookie
Re: A rather fine line to walk. - Posted by Jim V
Posted by Jim V on June 19, 2001 at 23:46:37:
If an outside agency is providing not an abstract, but “real dollars” to solve a homeowners immediate financial need and subsequently an investor comes in and through “subject to” or other means transfers those dollars into the investor’s pocket, you don’t see a problem?
The point of the program is to allow people to keep their homes if possible.
I can’t envision any possible way to consider it “opportunity”, it’s diversion of funds intended for another purpose. As soon as the administrators of a given fund found investors capitalizing on it, they’d cut off the funds and the program. That would really help people who needed it, wouldn’t it?
Re: Send Me $3,000 If you plan to use this info… - Posted by Kim (FL)
Posted by Kim (FL) on June 19, 2001 at 22:42:51:
My original thought was the fact that most gov’t assistance programs like this have contingencies that the seller must follow once they receive this assistance. For instance, for Down Payment Assistance programs, you have to live in the home for 5 or 10 or 15 years and if you don’t you must pay the money back. Is their perhaps a guideline that it must be sold to an owner occupant or something like that? You listed a ton of contingecies to get the assistance but it doesn’t appear to have any rules once they receive it. If there aren’t it seems like you could simply become an expert at this program, present it to sellers and during that process write up a reasonable contract to purchase the home once they are done. You’ve helped them get out of their situation and you’ve helped them sell to you. What’s unethical about that? By the way these agencies (the county’s or city’s affordable housing department) get a certain amount of money to use a year and love it when people help market this money. If they don’t all their money, the grants get lowered in future years. So, you may find an employee there who can help you by giving you detailed guidelines to this program and paperwork that will help your marketing efforts.
Speaking of the ethics to this. I’m a mortgage broker and have my county down payment assistance programs MEMORIZED so I can use it as a selling point. Many mortgage brokers hear “I have no money” and they say “oh, I’m sorry Mr. borrower you need atleast your 3% down payment. Bye”. I can often say “yes” a lot more because I can tell them about down payment assistance and use that to help them get into homes. Am I a shady character like JSON says??? NO WAY – I’m a HERO in their eyes – I helped them get FREE money and I got a commission because I closed a deal that couldn’t be closed if I wasn’t a DPA expert. I also LOVE helping first time homebuyers and feel like my job means something because I focus on these programs. So “JSON” – stop judging and look at this from an honorable viewpoint. People in bad situations OFTEN do not learn to utilize the resources available to them. If “houserookie” gives them this knowledge and later profits from it – he’s helping him, his community, and the homeowner who was in trouble.
Re: Send Me $3,000 If you plan to use this info… - Posted by Jim IL
Posted by Jim IL on June 19, 2001 at 17:08:22:
Houserookie,
Thank you, I was one of the people asking for some clarification, and you provided it.
What about the family that is facing foreclosure, needs cash to stop that, but will STILL not be able to keep the loan current afterwards?
Perhaps they could gather these funds to cure the loan in default, then sell to you, “subject to”, and have you pay them a little something to move on with.
As long as the amount to cure the loan is more than what they need to move on, do it this way.
or
Buy the notes on these homes, at a discount, and then allow the seller to cure with you.
Plenty of things come to mind in using this type of program.
Thanks for the info and clarification.
Jim IL
In my country honor means a lot - Posted by JSon(CA)
Posted by JSon(CA) on June 19, 2001 at 16:39:06:
Houserookie,
I’m sorry I don’t agree with Rob, Ron and Frank, but I prefer to help people and work for my money. Charging people, who are already losing their homes, especially on a program thats free, leaves me with a bad taste in my mouth.
In my country honor means a lot and I’m not used to all of the American ways of doing things. But your offer makes you seem more like an opportunist and someone who is profiting on others misfortune.
I want my real estate investment profession to be something of honor and value. I do not consider what you are doing as real estate investing nor do I consider it to be an honorable business practice. I’m not sure why you even posted on this board.
Thank you but, I’d rather pass on your business offer
Re: Send Me $3,000 If you plan to use this info… - Posted by Ronald * Starr
Posted by Ronald * Starr on June 19, 2001 at 16:05:53:
HouseRookie-------
I like your way of thinking. I like to see people get helped. And if you can make some profit from it, all the merrier.
I like that you have looked at a program and are getting the details. This could be a wonder little niche for you. THERE ARE RICHES IN NICHES!
I don’t have any particular idea to offer right now, but I think you could do well if you can find about three or four different services to offer that fit with this program. I suggest you talk to the people running the programs to find out what they have done in the past with the money.
Good Going, Guy.
Good Investing and Good Helping*******Ron Starr********
Re: Send Me $3,000 If you plan to use this info… - Posted by Rob FL
Posted by Rob FL on June 19, 2001 at 11:28:47:
When someone is getting booted from their house in a foreclosure they could use this program to pay for their moving expenses while you buy the house from them.
Re: Send Me $3,000 If you plan to use this info… - Posted by frank
Posted by frank on June 19, 2001 at 10:52:01:
Do I have to occupy the house or is it ok to use the $$$$ to fix my rehabs and rentals!!!There is no limit to generosity when using tax dollars. LOL
frankCA
SCAM… - Posted by Sue
Posted by Sue on June 19, 2001 at 10:45:16:
Why are you trying to profit off of a free program?
You are a scam
Re: A rather fine line to walk. - Posted by Houserookie
Posted by Houserookie on June 23, 2001 at 05:12:23:
Hi Jim,
I think you are reading too much into this program. It’s just a vehicle to help people move on. You missed the point about this program that is most beneficial. That is, you do not have to stay in your existing home. This program will help you get assistance to move out, and if necessary help you pay for a new place.
You can qualify for such program once every 12 months.
This reminds me, a marketing guru once did a study, similar ones have been done since. Basically, an ad ran for several weeks offering to give away a hundred dollar bill to anyone willing to pay shipping and handling fee of $2.95.
The result, people didn’t believe it was true.
Re: Send Me $3,000 If you plan to use this info… - Posted by HOuserookie
Posted by HOuserookie on June 23, 2001 at 04:57:32:
Thanks Kim,
Ironically, this program ( at least in MN ) is not part of a housing development program.
It’s part of a whole emergency assistance program. And fortunately there is no string attached.
You are not required to keep the home for so and so years, or sold to so and so person.
This is not part of an effort to revitalize the community. It’s simply an emergency funding program to help those in need.
To my surprise, there is no income or assets guideline to qualify as well. I will keep everyone posted.
Re: Thanks, Jim - Posted by Houserookie
Posted by Houserookie on June 19, 2001 at 21:44:31:
I called a case worker and the program requires the family to be able to afford future payments.
I think “subject to” is the best route for this type of transaction. Notes at decent yeild not bad either.
I’m more concerned about the “role” that investors play in “helping” homeowners obtain this money.
This role takes place before the actual “subject to” agreements.
Re: In my country honor means a lot - Posted by Rob FL
Posted by Rob FL on June 20, 2001 at 08:59:58:
Maybe you are forgetting the fact that these people are most likely going to lose their home to foreclosure??? They are going to get no money for their equity (many years of payments), get kicked out onto the street, have to pay money to move and relocate etc., and get a foreclosure on their credit report.
What Houserookie and investors do is a good thing. I guess it is the whole of idea of some seeing the glass half empty and some seeing it half full.
I guess maybe we could just say “To heck with the homeowner, let the them get kicked out of their house. I will buy it at the foreclosure auction or from the bank after the auction.” What’s the difference? In the pre-foreclosure stage the homeowner might be able to walk away something instead of nothing at all.
Re: In my country honor means a lot - Posted by Houserookie
Posted by Houserookie on June 19, 2001 at 21:38:56:
Would you rather see people lose their homes? Credit?
Re: In my country honor means a lot - Posted by Lazaro
Posted by Lazaro on June 19, 2001 at 17:59:31:
IMOHO ALL real estate investors are opportunist. You aren’t going to pay full price for a house are you? If you do you would not last very long in this business. They also have to pay for our services. We are providing them with a service. If you don’t think you are an opportunist then start paying everyone 100% of what their home is worth. I don’t like to pay 100% on a home so I look for MOTIVATED sellers. there is nothing wrong with what the others have said. Just my opinion.
Cordially,
Lazaro
Re: Send Me $3,000 If you plan to use this info… - Posted by Houserookie
Posted by Houserookie on June 19, 2001 at 21:32:15:
If u assist them, is that legal? Broker license maybe?
Re: SCAM… Susan, Is Knowledge Free? - Posted by Houserookie
Posted by Houserookie on June 19, 2001 at 21:31:06:
When was the last time u went around door to door showing people how to sell homes?
When was the last time u helped out a family
in foreclosure or provide any “service” free?
Quick Question - Posted by ScottS
Posted by ScottS on June 19, 2001 at 14:41:09:
Since the money IS going to be spend on assistance to folks who needs it…doesn’t that mean SOMEBODY is going to make money from the program?
Just because the program is free doesn’t mean anybody doing BUSINESS with the people will provide goods and services for free.
So why shouldn’t he make money?
ScottS
Re: SCAM… LOL. - Posted by Houserookie
Posted by Houserookie on June 19, 2001 at 13:24:28:
Are u new on this board?
This post is a followup from a few days ago.
Read, read, read.