Chance of losing money? - Posted by Walt

Real Estate Investing
1

Posted by Michigan Andy on January 24, 2004 at 19:48:23:

Wow!

As usual, great answer, Brent. I, too, Walt, see the other response as pretty optimistic. May I ask where the property is?

Hope it works out.

Andy

2

Chance of losing money? - Posted by Walt

Posted by Walt on January 24, 2004 at 19:07:35:

I took back a 2nd on a house I sold a year ago and now I find that the buyer is behind in payments and is in jepordy of losing the house to bankruptcy. My question is that since I’ve recorded the note, will I get my money out if it is foreclosed on? Or what do I need to do to get my money?
I live in Michigan.

3

Re: Chance of losing money? - Posted by Nate(DC)

Posted by Nate(DC) on January 25, 2004 at 13:12:53:

I’d say your chance of losing money is quite high.

NT

4

Re: Chance of losing money? - Posted by Jim (MD)

Posted by Jim (MD) on January 24, 2004 at 20:08:11:

The fact that you have recorded the note has no bearing on whether you will get your money back.

You should see a real estate attorney as soon as possible to check your options.

5

Re: Chance of losing money? - Posted by Brent_IL

Posted by Brent_IL on January 24, 2004 at 19:31:45:

To get your money:

  • you?ll need to bring the first mortgage current;

  • petition the Bankruptcy Court for a relief of the automatic stay;

  • after getting relief, foreclose on your second to get the property back;

  • re-sell the property;

  • hope there’s something left over for you at settlement…

They’re called throw-away seconds for a valid reason. I think Jack is an optimist.

6

Re: Chance of losing money? - Posted by Jack

Posted by Jack on January 24, 2004 at 19:10:56:

with the information you have provided I would estimate the chance of you losing the entire note amount to be: 75%