Posted by Ben (NJ) on January 22, 2002 at 12:21:39:
what do you mean “you could leverage into the deal
with only your costs of foreclosure?”
has anyone ever foreclosed? - Posted by gus
Posted by gus on January 21, 2002 at 17:22:09:
I got a call from a lady who sold her house (that she owned free and clear) with owner financing. The buyers owe her a total of 104K (the FMV is probably 110K) but have not paid her a dime in several years, she has finally decided that she has had it and is desperate to do something about it. She wants to foreclose on them, but doesn’t want to do it personally (the buyer is her ex-husband and she is afraid of him). She asked me if I would “buy” their mortgage and handle the foreclosure. I’m sure there is $ to be made here, but am unfamiliar with the foreclosure procedure, how long it takes (in my area) and how expensive it is (do I need a lawyer). Florida has a judicial foreclosure process and the average foreclosure takes 210 days. Any thoughts or suggestions would be greatly appreciated.
Try Bribery…$$$ - Posted by Jeff B. (TN)
Posted by Jeff B. (TN) on January 21, 2002 at 21:33:27:
As you are already aware, it will cost YOU time & money to achieve success in this deal!
TIME = your effert & aggrivation to see it through, not to mention the 7+ months that you mentioned that aren’t earning any money on this deal…
MONEY = $$$'s spent on forclosure & eviction attorney(s), not to mention other costs!
UNKNOWN = $$$'s spent to fix up damages that are already done to the home, PLUS any future damage done by the “LOSER” that is in the house, that doesn’t want to leave!!
Here is another possible solution for you… PAY THE SCUM BAG TO LEAVE!! As WRONG as that sounds, it may be the fastest, cheapest, less stressful way to handle this situation!!
Here’s how to approach it… Get a couple of your really big & mean looking biker friends… only kidding, however that has been known to work as well!
All kidding aside… Contact the “LOSER” tenant, and tell him that YOU are the new mortgage holder, and you bought the note AND ALL OF THE PAST DUE PAYMENTS!!
You need to make a pretty quick judgement call here and decide to play it cool, or play hard ball with this guy!
If you play “Mr Nice Guy” with him, you will let him know that if he signs a “QuitClaim Deed” over to you and moves out within the next 10 days or so, you will not pursue him in forclosure proceedings against him & all of the back payments, and totally ruin his credit!
Yada, Yada, Yada…
Got news for you… He probably will say… “Pis* Off”, so now you start negotiating with him… And your success will all depends on two things…
- How much he values his credit rating??
- How much he could use some cash!!
Remember, if you are already prepared to spend $2,000 for attorney(s), as well as wait 7+ months (rent $3,500+ = 7x$500 or so?). Seems to me, anything under $5,000 would be money well spent!!
And again… BIG DISCOUNT on the Note!! I’d have to say 50% or more discount to take this off of her hands, and it sounds like she might just be ameaniable to it!!
Good Luck…
Jeff B. (TN)
TraderGuy@bigfoot.com
Does a bear… - Posted by Ben (NJ)
Posted by Ben (NJ) on January 21, 2002 at 18:27:58:
(well, you know the rest). The logistics are simple. All you do is take an assignment of the mortgage from her name to yours (preferably a generic corporate name so wacko can’t track you down), record it at the courthouse and hire an attorney do the rest. Here in NJ, it would probably cost around $2000 and take close to a year. It sounds like there is little or no equity to be gained so you would definitely want a significant discount since you are taking over this woman’s headache and she is cashing out with no aggravation. (I can’t even believe she waited years). Make sure the attorney you hire specializes in mortgage foreclosure and evictions and doesn’t just do it “on the side”. Good luck-( remember BIG discount, don’t just make her problem into your problem!)
Your thoughts - Posted by Bud Branstetter
Posted by Bud Branstetter on January 22, 2002 at 11:02:29:
What are your thoughts on taking the assignment in a note trust. The beneficiaries of the trust could have an agreement to split the proceeds in any fashion agreed. That way you could leverage into the deal with only your costs of foreclosure.
I’m setting one up now to buy a note from a bank so that it can be foreclosed at about 35% of ARV.