California Settles with Mortgage Servicer Over Alleged Misconduct

Source: https://thinkrealty.com/california-settles-mortgage-servicer-alleged-misconduct/

After a long and drawn-out battle with the state of California, Ocwen Financial Corporation has finally reached a settlement with California’s Department of Business Oversight (DBO). Ocwen agreed to pay… more

The post California Settles with Mortgage Servicer Over Alleged Misconduct appeared first on Think Realty | A Real Estate of Mind.

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Are you thinking of investing in real estate? However you do not have enough cash to do this. Here is a tip you can use as long as the person selling the property is willing to negotiate with you.

To be fair, not every seller will be willing (or even understand) the concept outlined. Your better wager is to locate a property that the owner has great interest in selling, whether because of moving, divorce, or they are frustrated with the people renting the place.

Actually, if you maybe currently renting and thinking about using this strategy perhaps the owner would be happy to help you out! There are several variations that can be used depending upon you and your owner. Do they want the market price or are they just eager to get out from the monthly payments – perhaps facing foreclosure?

The easiest method is to consider taking over their mortgage repayments – called ‘assuming’ the mortgage. You will have to be approved by the initial lender to presume the mortgage. If you cannot get approved for an assumable mortgage you may as well try a ‘subject to’ assumption where you merely make payments while the property stays in the seller’s name.

You take over the original mortgage and make a 2nd mortgage on the remaining cost of the property with the seller. Offer a high, interest-only payment for a short time period – 2 or three years. Instead of having the money stay in a bank they can be getting a high interest over two or three years with the remainder due in full at the end of the term.

When the term ceases you should be able to refinance the cost, or else you could sell. Unless you hit a genuine bad market the value of the home should have risen in that time.

A lot of mortgage lenders merely need to make a good investment. While your local bank could still be lacking confidence there are plenty of financial lenders that would want to make a deal. Financiers prefare real estate. The mortgage is mostly based on 60-70% of the value of the land, so as long as they understand they get their money back in the value of the land if you default, they do not care what kind of revenue you make. Complete the deal with a second mortgage done with the seller. If you default they could eventually foreclose on the property and sell it, settling the existing mortgage with the proceeds.

Now you can observe the complete picture. It is better that seller and buyer can work together. In the event that they can’t wait for a sale, you can still give them their asking price with a little versatility on their part.

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