Solution : A relative of the widow was a financial planner . After studying the situation , he suggested that she sell the equityrich property she was living in . She did not have to pay any state or federal taxes . She received a very sizeable down payment for about half of the selling price ; she also started receiving a very nice monthly payment for the other half of the selling price , which she received via a seller carryback loan she extended to the buyer . This unique approach solved all three of her problems : She was able to pay cash for smaller place ( and pay off all of her debts as well ), which meant a lot less upkeep ; with a smaller place her monthly operating costs were lower than before ; she received enough monthly income from the seller carryback loan that she was basically set for the rest of her life . It wound up being a good deal for the buyer of the property as well since he received favorable financing from the widow . Win Win !
CASE STUDY NO . 9
Situation : Several years ago , a retired gentleman sold his thenprimaryresidence ( which he had owned for many years ) to a woman buyer . However , the buyer lacked all the required down payment money . Since the gentleman was very desirous to move ASAP , he agreed to provide the buyer with seller carryback financing , in the form of a second position loan , using the house as collateral .
Problem : Fast forward halfadecade . The holder of the secondposition note had stopped receiving monthly payments from the woman . Worst still , after doing some research , the gentleman discovered that the woman was in serious financial straits — so much so that she had stopped making payments on the first position mortgage as well . Worse still , the holder of the first position mortgage had already sent a NOD ( Notice of Default ) to the woman . The clock was ticking . The gentleman soon thereafter sat down with a Realtor ® friend of his who was also a loan broker . What the gentleman discovered was that if the holder of the firstposition note successfully foreclosed ( which at this point was scheduled to happen in just a few weeks ), the value of the second position note he held could be completely wiped out , and be worth nothing .
Solution : Since The loan broker recommended that the gentleman needed to take action , i . e . sell the note to an investor who specialized in NOD notes . A STEF investor was brought in by the loan broker who bought the second note for from the gentleman , for a discounted price . The STEF investor subsequently cured ( brought the first position note current ), then foreclosed against the property from the second position ; he eventually undertook a cashforkeys / deedinlieu deal with the woman . In the end , all parties were happy with the outcome .
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