Real Estate news (please forward to all mortgage types)

TO ANY AND ALL MORTGAGE-RELATED PERSONNEL AT CHASE BANK/JP MORGAN, ETC:
I have been in the field and reviewing your title-work on various properties in NYC. Nice job on the legal white-wash. Looks like mostly valid legal. However, the homogenization of the paperwork is insufficient in all cases to ensure clean chain of title.

I have some plans. I need some lawyers who remember their basic contract law (or can review). “Consideration”. “Notice”. “Contract”. Ok. As we all remember, a contract can be null-and-voided in the case of insufficient consideration. This might give a few of you some ideas. $10 property? Is possible, but let’s just slow down a bit. Note: I am assuming a base level of knowledge here, however, if you feel I jumped, I can fill in details.

Stability. Trust. Continuity. Fairness.

This brings me to what I term a “First Credit”. It is an invention of mine, but I surmise a similar if not identical thing was done in the 1930s after the 1920s tulip-mania on real estate in Florida and elsewhere. I would like to know if there is a UCC reference as in a UCC Termination on a “First Credit”. What is a “First Credit”? Glad you asked. Ok. Under water property. $500k in liens. Fair valuation based on cash-flow and replacement costs (ignoring comps for the moment) is $300k. That is $200k under water. I buy the house for $300k. Owner signs over deed to me (fully encumbered). Am I going to give that homeowner $300,000? Hell no. I give him $15,000. Ok, now I have a problem. On the deed I am creating, I need sufficient consideration. That is where the $285,000 First Credit comes in. It is my promise to pay assuming it will cover all existing liens and encumbrances. (Need some lawyer work here, but you get the gist.) Now. I have a valid contract with valid consideration. I also have a comp on the record (itself) for that valid AND I have an appraisal at cash-flow and replacement cost that can be backed up in a court of law. Who is the lienholder on this? Let’s say HSBC. Now we go in to HSBC and… sorry guys that is a $285,000 mortgage. We’ll give you 95% LTV AAA debt mortgage and exchange it for the existing $500k in bad debt. You might also notice, that “First Credit” is filed in the court house, so what title company or due diligence review is going to close on that? None whatsoever. Locks up the interest in the house until the existing liens are negotiated and termed.

Please contact me for details. Lots of work to do. I have a large plan, which might even include the creation of a new central bank called the Central Bank of New York City (or something to that effect).