Posted by Ronald * Starr(in No CA)_ on June 29, 2002 at 13:58:38:
Sam--------------
Sounds like me to me. Of course I have some special knowledge you lack: I did write it.
What sounds strange, out of place? Different?
One never knows what a lender will do until one makes an offer. I think the chances for this one to fly are slim, but I don’t know the lender and the lender’s position. My advice–ask or make an offer.
Good InvestingRon Starr
Foreclosure strategy - Posted by Rod (OH)
Posted by Rod (OH) on June 28, 2002 at 20:59:00:
Ther is a house I have identified that is in foreclosure and is scheduled for Sheriff’s sale on Aug. 1. The Judgement against it is 64.4K by the 1st lien holder. I don’t think there is a second mortgage.I want to ask the
mortgage Company if they would be willing to sell the mortgage at a discount (70-75% of face value) since it is a defaulted mortgage. The foreclosure would go ahead and I would be taking the mortgage company’s place at the sale. The house appraised for 139k so the bidding would start at
93k.If someone bids, I make money on the note. I I buy it for 93k, I get to keep the 64.4k note value and will have bought the property for about 75k. Do you see any problems with this approach? Is the mort. co. likely to take this deal?
Re: Foreclosure strategy - Posted by JT-IN
Posted by JT-IN on June 29, 2002 at 11:56:53:
Rod:
While you can certainly make this offer, it will most likely be futile. Since the lender has gone to the extent of filing the suit and is near the Aug 1st (scheduled) sale date, there is almost no conceivable scenario where they will accept this offer.
However, this property will NOT sell as scheduled on Aug 1st! It has Ch13 written all over it! Now, after the owner files the Ch13, then make the offer to the lender… They will likely still not accept under your terms, but you have a much more plausible attempt after the property is pulled from sale, than being 5 weeks from sale.
“I don’t think there is a second mortgage.” You should know the answer to this prior to formualting this, or any strategy. Shold there be a 2nd mtg, they would be the folks with some possible motivation to accpet less than face amount on a mtg, not someone who is at 48% of FMV, with a statute of 2/3rd’s FMV for minimum bid…
Just the way that I view things…
JT-IN
Re: Foreclosure strategy - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on June 28, 2002 at 22:19:08:
Rod–(OH)-----------------
They WILL NOT take the deal if you do not offer it to them. They MAY take the deal if you do offer it to them. Which action gives you a better chance of making the deal? What horrible thing are they going to do to you if you make the offer and they do not take it? (a) Put you name, picture and a description of your crazy offer up on a downtown billboard? (b) Tell your neighbors that they have weirdo living near them–you (c) Tell you “no.”
Good InvestingRon Starr***
Re: What? - Posted by Jim V
Posted by Jim V on June 29, 2002 at 01:25:33:
Offer a discount of 25-30% on a less than 50% LTV foreclosing note?
Did I miss something, or did Hell just freeze over?
D “All of the above” is the appropriate answer.
Re: Foreclosure strategy - Posted by Dan****************Stra
Posted by Dan****************Stra on June 28, 2002 at 23:00:38:
Ron Starr wrote:
" '(a) Put your name, picture and a description of your crazy offer up on a downtown billboard? (b) Tell your neighbors that they have weirdo living near them–you (c) Tell you “no.” "
Come on, Ron. Fess up! I heard that both examples happened to you and forced you to move out of town from embarassment. 
Best,
Dan****************Stra 