Posted by James Potenza on June 01, 2001 at 11:00:38:
I am not sure how you should aproach this but I have some insight on the 2nd mortgage. As I recall if the property goes into foreclosure on the 1st mortgage, all other junior liens are removed unless it is a tax lien. If this is true then it might be worth it to let it foreclose. I am not certain in your state.
James Potenza
Houston,TX.
FORECLOSURE OPPURTUNITY, WHERE DO I START? - Posted by RA, FL
Posted by RA, FL on June 01, 2001 at 08:25:14:
The property total is 3 acres, the single family home is on one acre. 1800 sq ft 4bdrm 2 ba single story tile in living room and kitchen. sprinkler system for landscaping. fireplace with rustic stone hearth,very large.horizontal blinds in all bedrms.
The other 2 acres consist of fully operational nursery with shade house for 26000 plants,sprinkler system and heat mist and timer, fed by 350 ft deep well. another hut or shade house also exists on the property along with a garage/office area with a/c and bathroomalot of excess land not being used, approx. one acre.
first mortgage of 130K including back payments.
second mortgage of 40K in good standing.
home and land appraised 3 years ago for 190K.
home is rented for 1000. month and owner is searching for renter for nursery at 500. month.
Owner says that he can remove the second mortgage by filing chapter 13 thru an attorney. I’m not sure about that. Any help would be greatly appreciated. thanx Bob.
Possible Intrinsic Value Here… - Posted by JT - IN
Posted by JT - IN on June 01, 2001 at 17:18:18:
I have had some degree of success with properties such as these, that there is the possiblityof higher and better use. This may or may not be the case in this instance.
The 2 acre that is nursery, with equipment and well, is not yielding enough rent, at $ 500 per month. Is there any nursery stock, in place, at this time? What is the value of the equipment, liquidated, either through auction or arms length sale? Factor in what you think you could get for equipment and holdover inventory, at auction; right-now, liquid cash! Consider the cost, (providing zoning will tolerate this conversion), to convert the garage/office to a rental, or resalable residence, assuming that you could subdivide this 2 acres off, into one or hopefully two parcels, leaving another parcel to build on, or sell off, for additional revenue.
With some manauevering, and cooperative zoning rules, you could possibly take this property into a new direction, that the current owner sees only as a “house and nursery”. I see (smell) dollar signs!
As for the BK (Cpt 13), I wouldn’t recommend this. If seller gets 2nd removed, there will surely be Trustee appointed, and all sales/transfers will need to clear their muster, which could very likely leave you “out in the cold”. Try to make it work with current debt, and take property subject-to, having Seller do the catch-up on the 1st mtg payments, if possible. Then, with creativity, have some fun and make some money!
Just the way that I view things…
JT - IN