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  • February 15, 2008 at 11:32 PM #11834
    cantab
    Participant

    http://www.californiahorizon.com/programs.htm

    “The New Horizon Financial Residential Acquisition program generally requires a 10% consideration. As technically this transaction does not constitute a loan under legal definitions, we refer to a down payment as a consideration.

    … two separate transactions are executed. First, the investor that New Horizon Financial assigns to the transaction takes out a conventional mortgage loan and purchases the desired property. Immediately following the closing, the investor provides the property back to the applicant in the form of an option note. While the property is initially titled to the assigned investor, the entire transaction between the investor and the applicant is placed in an Intervivos Land Trust.

    … In simple terms, neither the investor nor the applicant actually owns the property. Since the property is deeded into the trust, the trust owns the property and the applicant has first option on the trust. The only way an applicant may lose the property is by defaulting on the monthly resident payments.

    … Technically, this type of New Horizon Financial transaction is not a loan, but it is structured and works in much the same way as a loan. The consideration payment is applied to the principal balance much in the same way as with a mortgage loan. The New Horizon Financial Residential Acquisition transaction is a non-RESPA transaction. No conveyance of title takes place.

    It is sometimes difficult to adjust to the idea that an applicant will be approved regardless of credit, income or job status. This, however, is definitely the case. …

    February 16, 2008 at 2:16 AM #154134
    Doofrat
    Participant

    It looks like you put 10% down and then get an option to buy the property, but can lose that option by defaulting on the payments. After hearing about loan servicing co’s screwing people by changing addresses and other chicanery, you’d want a lawyer to read over the paperwork really well.
    Without knowing anything about this, I’d guess that with the combo of
    1) focusing on people who won’t pass credit/income checks
    and
    2) presenting a complicated deal with all sorts of living trusts and options to that person

    it probably amounts to the Rent-a-Center or Cal Worthington of buying a house. I don’t know anything though, but it just smells fishy, I guess it’s just “difficult to adjust to the idea that an applicant will be approved regardless of credit, income or job status.”

    Hopefully somebody else has some more info?

    February 16, 2008 at 2:16 AM #154412
    Doofrat
    Participant

    It looks like you put 10% down and then get an option to buy the property, but can lose that option by defaulting on the payments. After hearing about loan servicing co’s screwing people by changing addresses and other chicanery, you’d want a lawyer to read over the paperwork really well.
    Without knowing anything about this, I’d guess that with the combo of
    1) focusing on people who won’t pass credit/income checks
    and
    2) presenting a complicated deal with all sorts of living trusts and options to that person

    it probably amounts to the Rent-a-Center or Cal Worthington of buying a house. I don’t know anything though, but it just smells fishy, I guess it’s just “difficult to adjust to the idea that an applicant will be approved regardless of credit, income or job status.”

    Hopefully somebody else has some more info?

    February 16, 2008 at 2:16 AM #154427
    Doofrat
    Participant

    It looks like you put 10% down and then get an option to buy the property, but can lose that option by defaulting on the payments. After hearing about loan servicing co’s screwing people by changing addresses and other chicanery, you’d want a lawyer to read over the paperwork really well.
    Without knowing anything about this, I’d guess that with the combo of
    1) focusing on people who won’t pass credit/income checks
    and
    2) presenting a complicated deal with all sorts of living trusts and options to that person

    it probably amounts to the Rent-a-Center or Cal Worthington of buying a house. I don’t know anything though, but it just smells fishy, I guess it’s just “difficult to adjust to the idea that an applicant will be approved regardless of credit, income or job status.”

    Hopefully somebody else has some more info?

    February 16, 2008 at 2:16 AM #154435
    Doofrat
    Participant

    It looks like you put 10% down and then get an option to buy the property, but can lose that option by defaulting on the payments. After hearing about loan servicing co’s screwing people by changing addresses and other chicanery, you’d want a lawyer to read over the paperwork really well.
    Without knowing anything about this, I’d guess that with the combo of
    1) focusing on people who won’t pass credit/income checks
    and
    2) presenting a complicated deal with all sorts of living trusts and options to that person

    it probably amounts to the Rent-a-Center or Cal Worthington of buying a house. I don’t know anything though, but it just smells fishy, I guess it’s just “difficult to adjust to the idea that an applicant will be approved regardless of credit, income or job status.”

    Hopefully somebody else has some more info?

    February 16, 2008 at 2:16 AM #154514
    Doofrat
    Participant

    It looks like you put 10% down and then get an option to buy the property, but can lose that option by defaulting on the payments. After hearing about loan servicing co’s screwing people by changing addresses and other chicanery, you’d want a lawyer to read over the paperwork really well.
    Without knowing anything about this, I’d guess that with the combo of
    1) focusing on people who won’t pass credit/income checks
    and
    2) presenting a complicated deal with all sorts of living trusts and options to that person

    it probably amounts to the Rent-a-Center or Cal Worthington of buying a house. I don’t know anything though, but it just smells fishy, I guess it’s just “difficult to adjust to the idea that an applicant will be approved regardless of credit, income or job status.”

    Hopefully somebody else has some more info?

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