I Can Dodge Bullets

Posted July 17th, 2007 by Joe Kaiser

. . . your office has demonstrated it's pretty much clueless about what's important to people in foreclosure.

Dear Rob,

I pulled the trigger on another foreclosure rescue last week, over-nighting $15,000 to Ohio to save a gal from losing her home.

A buddy of mine had knocked on her door to let her know what we could do to help her.

By then, she’d given up all hope of keeping her home and was doing all she could just to keep herself together.


Lost and alone

I’d heard it was difficult for her to even talk about the situation, her house being already foreclosed on in March.

She had no place to go.

And no money to get there.

Can you imagine?


Except that . . .

Today, her foreclosure nightmare is over.

It’s done, gone, poof, as if it never happened. Now, she doesn’t have to move or wonder how to pay for a place she won’t need to find.

She’s in her home and delighted to be there.

How so?

Her foreclosure back in March required confirmation from the court and somehow, it got hung up.

That confirmation process typically takes less than 30 days, but when we saw there was a delay, we jumped at the chance to rescue her, ala the Equalizer.

And we did.


Cash in hand

Her property had sold at foreclosure and she would have netted $60,000.00 had the sale been confirmed. The property is worth twice that amount, but that’s what the winning bid ended up being.

And she could have walked down to the courthouse and picked up a check if that’s what she wanted to do.

She didn’t.

What she really wanted was stay in her home.


Here’s the math

We agree to partner up and today we co-own the property, 50/50.

I paid $15,000.00 to pull it out of foreclosure and now own an undivided one-half interest in a $120k house.

That means I bought a $60k equity for $15k.

My scheduled return?

4x.

Not the 10x I’m aiming for, so this puts me at more risk than I prefer, but still, good enough, especially since we’ve been able to rescue her.


What you refuse to recognize

Your office calls this a Foreclosure Rescue Scam because your office has demonstrated it’s pretty much clueless about what’s important to people in foreclosure.

And it’s not the money.

Your office seems to think she’d be much better off taking her $60,000.00 and starting over somewhere else.

And that I’ve scammed her by buying half a $120,000.00 house for a “nominal” $15,000.00.

You simply do not get it.

I have delivered an extraordinary service, Rob. In doing so, I’ve assumed risks you cannot imagine.

Until you’ve stepped up and written $15,000.00 checks to stop foreclosure AND allowed the seller to stay in the home, don’t tell me I’ve made too much.


It’s about value

Your office has taken square aim at me for this very sort of deal because you’ve decided I earn too great a profit, oblivious to the service I provide and unwilling to recognize the value of that service.

It’s really simple . . .

We stopped foreclosure and our gal isn’t forced out on to the street.

She can sleep tonight in her own bed and not worry about what tomorrow brings. There won’t be any U-hauls in her driveway and no sheriff will be posting an eviction notice in the morning.

I made that happen.

I wrote the check.

Respectfully,

Joe Kaiser


2 Responses to: “I Can Dodge Bullets”

  1. Richard Bradley responds:
    Posted: July 25th, 2007 at 10:45 pm

    How do you and her come to agreement as to when to sell in the future and for what asking price? Home improvments or remodeling?
    Thank you, Richard in foreclosure in Tucson.

  2. Joe Kaiser responds:
    Posted: July 25th, 2007 at 11:07 pm

    Richard,

    I’m now her partner. We now co-own the property and we’ve agree to put it on the market at some point within a year.

    We have no agreed upon price. We’ll sell it for whatever we can get. And if she wants to buy it, she can. I’ll even finance it for her if that helps.

    But, I haven’t agreed to do anything other than put it on the market. She has no exclusive, fixed-price option or anything like that. We don’t do that sort of thing.

    In reality, if a year comes and goes and she’s unable to do anything, we’ll just keep on going. For me, it’s an investment, and I’m happy to let it roll.

    The approach we’ve always taken is to let the seller make the final call. For her, it’s her home, and that’s a much bigger thing than simply an investment.

    So, if she’s willing, I’d love to get it sold within a year and collect my share. But if not . . . that’s okay too. We’ll just go another year or two until she’s ready.

    And when she’s ready, we’ll let the market decide what it’s worth and if she wants to buy it herself, I’m certainly inclined to go with her offer rather than anyone else’s.

    The AG doesn’t get this, btw. They think we’ve somehow obligated ourselves to “restore” the seller into a full ownership position.

    Restore?

    Just plain weird. We’re partners. We co-own. We don’t restore anything as far as I know.

    They are still completely clueless as to what we do.

    Clueless.

    Joe

    P.S. Have you got your situation sorted out?


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