unlimited thus the name any property that has a loan and a motivated seller

Unlimited thus the name any property that has a loan

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unlimited (thus the name) – any property that has a loan and a motivated seller allowing you to purchase below market and use their loan is the candidate. Here’s the diagram how it works and the explanation is on the next page. à This is by far the most profitable way to acquire ownership! It gives you full ownership FAST! It is the lowest risk method that exists!! Very powerful! NOTE: throughout the manual, I will be referring to Unlimited Funding Method as “subject to” or “get the deed” or just “UFP”. It all means the same.
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Foreclosure Investing MASTERY - Manual – SECTION 1 . Copyright 2017 – 2018 © Marko Rubel MarkoRubel.com Page 31 of 121 As you can see from the diagram above, the seller had acquired the ownership by going to a bank and qualifying for the loan. In exchange for giving the funds, the bank has placed a lien on the property by which the property becomes the collateral for repayment of that loan (you will learn more about liens in the subsequent chapters). This is the common way people buy properties. Now, who is responsible for that loan? The seller is, until it is paid off in full! One day, for whatever reason, the seller can’t make payments anymore, or need to move quickly and becomes what we call a “motivated seller”. The motivation for that seller is either to get some cash out of the property (assuming there is enough equity); or just to get rid of the payments and save their credit. Either way, that seller found you through your marketing and you were able to negotiate to get that deed without paying off the seller’s loan, in exchange for a small cash down payment or in exchange for giving the seller a peace of mind. As evident from the above diagram, you get the deed (the ownership) of the property without paying off that lender. That lien stays where it was and the property is still collateral for the repayment. If the payments are not made, the bank will use that lien to foreclose on the property. However, as long as the payments are made, you will enjoy the full ownership of the property without ever qualifying for the loan or talking to a bank for that matter. And most importantly, without personally guaranteeing that loan! As a side note, there is a provision that prohibits the transfer of the ownership called “due on sale clause” or an “acceleration clause”. The “due-on-sale” makes the loan non-assumable. Violating that provision is not a crime, unless there is a law that makes it a crime in your state. All what that provision does is, gives the lender an option to call the loan immediately payable in full IF they discover the transfer. The fact is that they never do call because it does NOT make sense for them as long as the payments are made. If you think about it, why would a lender ever foreclose on a performing loan, when at the same time they are getting so many houses back from all the non-performing loans they’re foreclosing on. It makes no financial sense for them to do that. By the way, fully assumable loans almost don’t exist today.
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Foreclosure Investing MASTERY - Manual – SECTION 1 .
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  • Spring '15
  • Mr. Gardner
  • Subprime mortgage crisis, short sale, Hard money lender, Hard money loan

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