My friend was telling me about this real estate thing she was doing, basically she is saving people houses?

Question

she basically find houses that people are losing i think she said she finds them in the newspaper and she finds real esate investors and she checks loans amount and how much she owes on the house and how much equity because it have to be enough equity that the investor can get their money back and the investors pays her a profit from whatever he makes back from the house so my question is does anyone know about this and if you do tell me because my friend is like so selfish she wants everything for herself and she knows im in school tryna pay bills and the money will help alot so please help!!!!!!!!!

No its not flipping becasue the people do stay in their homes the investors give them money to stay in their homes and i think they pull their equity once they save their home. nothing changes i know what flipping is and it is alot of money she dont put any money up only the investor and he gets the money right back once he pulles the equity and then gives her a share of the money because she is finding the property and doing alot of helping the people and the investor just dishes out the money.

Answer 1

The unfortunate side to foreclosure bail-out and lease back to borrowers is that most investors, jack up the mortgaget hrough re-finance, thereby pulling money out, and then offer a lease-back to the borrower with the pre-tense that they are kindly helping them save their home a good credit. The truth is...if the borrower couldn't pay the mortgage at the current amount, how can they be expected to pay after the mortgage has been jacked by another 50k? The investor knows this and ideally will force the tennant out for breach of contract...failure to pay as agreed. The contract for re-purchase becomes void, and the investor sells the home for additional profits. This is predatory in nature and makes me sick! All who practice this form of bail-out..watch-out the FBI is watching! For those that don't...congratulation, your one of the good guys and money can indeed be made in the foreclosure market w/o screwing someone

See article as published in the Legal Corner of Brokers Universe: Legal Corner

by Herman Thordsen

The opinions expressed are Mr. Thordsen's alone and do not reflect the
views of SourceMedia, Broker or BrokerUniverse.com.

CALIFORNIA FORECLOSURES STILL INCREASING DRAMATICALLY

Foreclosure notice of defaults in California increased the last quarter of 2006 as follows: Alameda County increased 157%; Contra Costa County increased 179%; Solano County increased 163%; and Ventura County increased 204% over the same time when compared to 2005 figures.

Foreclosure sales in California are up over 590% when compared to 2005.

Nationwide there were 1.2 million foreclosure filings. Over 156,000 were in Texas alone.

(contracostatimes12507venturactystar12507, nmn12607)

MORAL

Now you know why the investors are suing the lenders to buy back and why the lenders are suing the brokers. You also now know why the criminal indictments are going up and why loss in sentencing is a crucial factor. Especially if the person indicted wants to stay out of a federal prison.



STANISLAUS COUNTY, CALIFORNIA SEES 22 MORE FELONY CHARGES AGAINST LONNIE ASHLOCK, RONALD BUHLER AND SUE WALLS

FACTS

Prosecutors filed 22 more felony charges against Lonnie Ashlock, Ronald Buhler and Sue Walls accused of swindling people out of their homes. They already face trial on 34 other counts. This brings the total to 56 felony counts. The three are alleged to have duped five families facing foreclosure into signing over deeds to their homes, according to a new criminal complaint filed in Stanislaus County Superior Court.

Many of their victims were sick, disabled, elderly or mentally disturbed, or fell for unwritten promises after Ashlock prayed with them, according to testimony at a fall preliminary hearing. The new charges will be subject to a second preliminary hearing. The most recent cases involve three Modesto families and one each from Patterson and Waterford. Two have sued Ashlock and Buhler, and are among 24 families in three counties seeking to reclaim their deeds through litigation.

Roger and Deborah Price had about $150,000 in equity in their Modesto home when financial problems thrust them into foreclosure. They arranged to refinance their loan and proceeds easily would have satisfied the debt, according to their lawsuit. But Buhler knocked on their door and somehow convinced them the money would not arrive in time to stop the foreclosure sale, and said they would be "living on the streets," the lawsuit reads.

Deborah Price told The Bee in March that she accepted $10,000 from the men, thinking it represented a portion of the equity. She signed papers she didn't understand, she said, and later read about the alleged scam in The Sacramento Bee and verified that she had lost the home.

The Prices ended up paying the men $1,350 per month to stay in the home— higher than the previous mortgage payment of $1,333 that they could not afford, Deborah Price said. The men tried to evict the family until they hired a lawyer and sued, she said. After a month long preliminary hearing, a judge in November ordered Ashlock, Buhler and Walls to stand trial on 15 felony counts of fraud and grand theft involving seven former clients.

In December, prosecutors tacked on 19 more charges for each defendant, all related to the same victims who had testified. In addition, Buhler was charged with two counts of felony forgery, Ashlock was charged with a single count of methamphetamine possession and Walls was charged with four misdemeanor counts alleging bookkeeping omissions. The additional charges allege grand theft, fraudulent foreclosure rescue and using false financial statements. With the new charges, each defendant faces 56 felony counts, plus the few brought individually. A pretrial arraignment on the initial charges is scheduled for Feb. 13. (sacrobee12007)

MORAL

If you want to run a foreclosure scam, be sure you do not get too greedy or you will get caught.

Answer 2

It sounds more like the investor is taking the flip risk, much more so than your friend. It sounds more like she is getting a finder's fee - she is bird dogging for the investor.

See if there are any investor groups in your area or talk with several real estate agents About their investors and see if any are actively pursuing new deals. Then ask the investor what kind of info they want before considering a deal and work out a pay structure that is fair to both. The investor is taking the bulk of the risk, investing his money, working through the rehab, negotiating the buy and sale of the house - so, they will get the lion's share

Answer 3

You get the list of foreclosed properties from your county, do some calculation according to the information given (this may be difficult for you), determine how much to pay and either make an offer (to the lender) or wait till the property is auctioned to bid on it. If your friend is not using any of her money, she is basically offering her service of looking for properties, which anybody can do. In that case, I think her take is small. If she is pooling investors (multiple investors), she could decide how much each would get and how much she would get. But, this would require knowing many people and you would need to sound like you know what you are doing to convince people. She may be using her own money to purchase with partner(s), which makes more sense. In any case, this is not anything new, and many people are already doing it. I can't imagine so called "investors" would require your service.

Answer 4

There is a technique that investors use known as "Lease Options" or rent-to own that can help someone behind on mortgage payments keep their home, and the investor to make a profit. This typically includes a Lease-option payment and a monthly cash payment for a pre-determined time period at the end of which the tenant can buy the house back for a set price.

Answer 5

We almost entered a flipping house situation and what happens is that repairs are needed (major) and ignored because the house has "so much potential" for the next owner. It catches up with them real quick..There is a dairy queen business that is a flipper from what I see in my area...the price started out at 60,000 then was loaned against for that amount also (120,000); then kept on market for x number of years; flipped at 120k; then 150k; then ? all in the past two years...this is just to buy the place because of dreams which here is nightmares.
You will get alot of facts here about flipping and please do not be slighted by your friend because there is other ways to make a buck

Answer 6

You sound like a very intelligent responsible person.Your to be commended for all of the things that you have taken care of and do to this day.Where is the father of your sisters baby? She should be collecting child support from this guy.Your sister is old enough to be contributing to the household and it's only fair that she pitch in and help out with all of the responsibilites that it takes to run a house hold.It's time that she grows up and starts acting like an adult.It's her baby,not your mothers.It sound like it's time for some tough love.I think if I were in this situation,I would most attempt again to sit down with her and show her all of the bills that you've encountered.There's no free ride in this world,I would make known that she is expected to contribute to the household,she has unemployment coming in and a portion has to be set aside for the bills,whether it's buying groceries or helping with the bills.It's not your responsibility to support your sister,you've gone way beyond the call of duty for her and her child.I would make a reasonable list of your expectations for her and present her with them,tell her if she can't live up to her end of the bargain then she is going to have to make other arrangements as to where to live.There are houses and programs for unwed mothers and their babys,they even have housing to help them get on their feet.I would look in my yellow pages under women's shelters and give her a dead line to accomplish what you have listed.She is taking advantage of you and your graciousness.Just because she is your sister doesn't mean that you owe her anything and you don't have to support her.Is there a relative that can help you out as far as giving her a place to stay? The best thing is if she could get out on her own and give her a taste of the real world.Sorry for your situation,I don't know if I've been of any help to you,but I do hope that I've given you some ideas.I wish you luck and follow through.Hope everything works out for you.

Answer 7

its called "flipping", and it can be risky if you dont know what you are doing.

they will buy a distressed house, one where the owners cant pay the mortgage and are going to be reposessed, or one where the owners have to sell quickly due to a move or job loss. Then they make repairs to the home and re-sell it as fast as possible.

Its difficult right now because interest rates are up, and the housing market is slow. you could buy a house to flip and end up stuck with it for months because it wont sell, then you'll lose all your profit on mortgage interest.

Answer 8

Just flipping foreclosed or distressed mortgages. It's relatively simple but fairly risky, especially on a buyer's market instead of a seller's market. I suggest you read up a book on how to do it safely so you can do it down the road.

Recommended reading can be found below.

Answer 9

If she is getting a fee she is acting as an agent. Without a license she is breaking the law. She could be reported to the state Real Estate Commission.

Answer 10

There are a lot of ways to prophet from the real estate market. I do not see how your friend is saving people their houses. For if she was these people would still be living in their homes.