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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