AMG

I guess it is Pick On Me Week- We bought a house subject to last week. I received a call from the seller today that the ex-husband said in their divorce agreement that he had first right of refusal. He said he does not want the house, but the second agreement is that the equity from the sale be split and that his portion goes into a fund for the kids. He claims there is $12,000 - $15,000 in equity. I would say he is about right. About $2500 is needed to catch up the loan, is only 3 payments behind as of this month. He has contacted his attorney and said all kind of mean things about us I guess. He threatened to call the TV station here about us committing some type of con. I learned of all this through the ex-wife, the one we bought the house from. She showed us the warranty deed that transferred ownership from the two of them to her. Anything to worry about? We thought about trying to talk to him and explain how we have bought the home and explain the numbers, why we are only paying the loan balance, etc. Also, we really need an attorney. Mike P. Are you looking for clients? Thank you, Angela

Thanks for your input Michael and Mike. I am going to stand my ground. I have not heard anything more from her yet. (Maybe I never will!) Angela

I received my first "I'm going to talk to my attorney about this" threat. I called an applicant to tell her her and her fiance ( the co-applicant) were accepted for this house and that we would like to set up the appt to do the L/O paperwork within the next two days. She said her and her fiance had a falling out and they were going to have to back out and could not take the house. She asked if she could have her non-refundable reservation/earnest money back. I told her no that if she is accepted and then decides no that it is non- refundable. We use an Application Receipt Agreement that states that this is non-refundable if they change their minds. I told her to make sure to take that to her attorney. What do you think? Am I ok here? Do I need to do anything as far as the co-applicant is concerned? Thank you, Angela

We made some learning mistakes in my first subject to. Doesn't look like it will go through now. When we met with the couple they told us they needed $3 - 4,000 to move somewhere else. We told them we would try to get the money for them, but didn't know if we would be able to. They were not able to get the money themselves, and time has gone by...... They have seen their attorney who is telling them not to sell, that they will fight the foreclosure. So we have had the property deeded to us, but now the owners won't leave and don't want to sell. We realize that if we could have just come up with their moving expenses we could have had the house. But, it doesn't seem worth it to push it any more. What do we need to do about the deed recorded in our name, now? Angela

You know, nothing gets you over that like just making yourself call people over and over. And go at it awhile, don't just call one person and then break, keeping at it for a few hours and you get over the jitters. I have found most people to be very nice and open to ideas of how to solve their problem. Just last week when we did a lease purchase, the sellers told us afterwards about their experience with another investor in town. They had met with this investor before us. They didn't like him at all. They felt he was demeaning and short with them. So they called us off of one of our signs. We were nice, chatted with them over a few weeks, actually before we ever got the paperwork done. They had a lot of questions! It was well worth it to hear their praise and the $19,000-$37,000 we will make off the deal isn't bad either! AngelMG

Is this totally credit based, then? AngelMG

Now that people have been sending the e-mails for a few months, What have the results been so far? Any deals from them or any good responses? I would like to use this method and was wondering what messages are working best for people.

Thanks for the encouragement. I love that you found a private lender through this! I will be interested to hear your down and out story. I am unfortunately still living mine, but I know it will not be long until it is a distant, humorous memory (maybe for my book)!

Does anyone know of any lenders that do not require 12 months of seasoning to do a refinance?

Michael, I am newer to this game of having owners come to us, but, I would think to jump on this deal. Isn't there about $30,000 in equity there