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Allow me to show you the power of credit and how you can use to your advantage while at the same time be debt free

That's the incorrect way to view this. Ironically, this implies you don't know how to use credit responsibly. There is 1000% a way to use a credit card and not owe a single cent in your life.

Depending on the type or stage of the debt, creditors have a variety of legal ways they can try to collect. My video here is for dealing with the credit bureaus, and typically once the creditor has determined the debt is uncollectable.

Thanks Collin - it's not always an easy thing to hear, but there are more and more companies who agreeing to participate this way, so that is some good news on the horizon.

i missed your question here Lawrence. the short answer is yes. so long as the buyer qualifies with the payment on the seller financed 2nd mortgage, the borrow van still assume the 1st.

Thanks for the response!

That's a great question Brian. My dad owned a lake house in Wisconsin with a full walk-out daylight basement to the lake front. From the street you only saw the garage, but I'm afraid that below grade calculation is still stuck as described in the video. However! Appraisers are also smart enough to be subjective on this type of situation. If there are comparable sales in the area with a similar situation it is very easy for the appraiser to make a positive adjustment to value. Still a case by case basis, so a lake home, or a home on a hill side will fetch more value, but do your homework and see if there are similar sold properties in the neighborhood.

You're correct - a cash buyer doesn't have to play with mortgage options. Can you explain how you make money when buying? I've bought and sold dozens of homes, but the gain/profit doesn't become a taxable event until the sale.

That's correct. The IRS automatically subordinates to a purchase transaction and in my video I never mention the need for the subordination agreement.

That is correct in all seller finance contracts. However, if the contract is drafted appropriately it will not affect the seller's capacity to get another mortgage.

@@georgeofthecreditjungle When you say correctly, is there any key notes or drafts you could send my way by chance? Not having much luck with seller financing on this side of town. Sellers are more concerned of getting this debt off their credit.

@@gnice2127 Are you in Utah? The types of contracts may differ depending on the state you are in.

@@georgeofthecreditjungle Hi George, no I actually reside in Baltimore county. I have a lady who owns her property and would consider seller financing. The rent roll Is between $1500-1850. But there's not a lot of people in my circle who has closed one of these deals. I would love to see a scenario on this deal above. For example, how would you structure taxes and insurance? And how much should I give her to put down? Also should I structure a gap payment?

@@gnice2127 Is the term "Land Contract", or "Contract for Deed" common vernacular in Maryland, or perhaps "Bond for Deed"? That's the most flexible contract that is recognized in the guidelines. Terms are whatever you mutually agree upon, but it also depends on what the seller intends to do once the home is sold.

That is sad to hear, but I understand. For decades prior Utah was the place people came to for affordable housing.

You've got a couple of challenges. Whether you were a joint user or an authorized user, you still "technically" are responsible for the debt. Even a divorce wouldn't change that, nor would a bankruptcy filed by the other person. On debts like these it always makes sense to call and make the offer - especially when there is a balance owing. If the balance is less than $1,500, as a general rule, don't offer any money at all unless they also delete the payments. The balance is too small for them to pursue a wage garnishments and if the debt is old enough, it won't prevent you from getting approved for a mortgage loan. Hope that helps.

If you're both on the loan and payments are always made on time, then yes, you will both have a benefit to your credit. Hope that's the answer you were looking for.

That is so good to hear Dave. Where is your market?

My pleasure DeAnna

Congratulations! What kind of condition is yours in and where do you live? I've only put about 1,500 on mine since I bought it. Just got it back from a complete run through tune up and getting ready for the Spring.

That was Friday - on Sunday it was so windy that only 2 of the 4 classes raced. I did 3 races that day and love it, but there were a couple of boats that got damaged from the high winds.

Those are ice boats. In ideal conditions they can go 5 times the speed of the wind. For kicks and giggles, look up the fastest reported speed of an iceboat. You'll be impressed.

Thank you for the info! I'll be sure to look it up!

Sorry for the late reply. Judgements still work, however, you would need either a 6 month or 12 month payment plan with all payments verified to be on time. Since it is a lien, the lien holder would also have to sign a subordination agreement to the new first mortgage being originated.

If you're in a short sale situation, then by definition, you don't have any equity to borrow against or gift. Does that make sense?

If home prices drop, then yes, your equity will go down at the same pace.

Glad you found it helpful Butch.

I hate to give this answer, but the truth is, it depends. Automated underwriting can be quite generous with charge offs. Your file would have to be run thru desktop underwriter or loan prospector to firm up an answer.

@@georgeofthecreditjungle thanks for your reply and being so quick! I actually could out that I have a judgment against me for a previous car loan from 7 yrs ago and I’m afraid this puts my FHA in jeopardy .

@@misterpinsky9535 The only way to confirm that would be to get a mortgage application, a credit report, and then run the file through DU or LP and see what happens. The fact that this is 7 years ago will work in your favor. In what state would you be getting the financing?

@@georgeofthecreditjungle the judgment is in the state of Florida and I’ll be receiving the financing from the state of Pennsylvania.

@@misterpinsky9535 I'm not licensed in Penn, so I would find a mortgage lender there (not affiliated with a depository bank) and let them take the reigns.

I know people that made the decision to take a vacation from paying their mortgage. Sorry to break it to ya, there are people out there that take advantage of the system.

@@danbrown8373 oh yeah. Well unfortunately, there will always be a few. But it's not common at all. Hate to break it to you, but a millions of people died very quickly and even more found themselves out of work all over the world. Parents were hit pretty hard aswell considering that if daycares and schools are all shut down, there's no way for families to earn money to pay said mortgages. It's not like it was in the 90s when I stayed home alone all day while my parents worked. That's gunna get your kids taken away these days. I think the ability to differentiate is important here. Maybe you weren't directly affected by pandemic, and good for you, but majority of people were. Mortgage companies and land lords are hardly the victims here. I know people personally who couldn't keep thier lights on because they had to pay hospital bills for thier family members and then funeral costs when they died anyway. The millionaire politicians and ceos who talk about "Nobody wanting to work" are the ones cheating the system. Not paying taxes, exploiting the common folk, profiting off of tragedy, and trying to gaslight us all about it. Go look up all the children who were left parentless over the last 2 years due to covid. Hundreds of thousands. We're those kids supposed to pick up the mortgage? What a bunch of silly geese. 🥲 but sure, go off about the few bad eggs as if people aren't actually suffering.

Did you ever do this? Was it deleted?

In the State of Utah it's called a Forfeiture of Contract. You would have to find out the terminology for your state.