Posted by Dee-Texas on April 24, 2002 at 20:51:33:
letter to note holder of preforclosed property - Posted by Dee-Texas
Posted by Dee-Texas on April 23, 2002 at 08:47:02:
Hello all,
I got such good advice from my previous question, I have another. There are 3 properties going up on the courthouse for forclosure. The note holder is not a bank or company but just someone that sold their house on a contract for deed. I’ve got the copy of the notice of foreclosure that the courthouse puts out with their name and telephone. I’ve called them but no response. They are out of town. Does anyone have a letter for this type of note holder? I want to buy the note and stop the forclosure, because the house is empty. I have no idea if this will work, because I’ve never done one of these before. I’ve been reading the archives until my eyes are crossed.
ANY HELP IS APPRECIATED!
Thanks,
Dee-Texas
Re: letter to note holder of preforclosed property - Posted by jeff
Posted by jeff on April 24, 2002 at 08:50:44:
OK here goes one more time, i tried this earlier and got rudely interrupted and didnt get it done. GGGRRRRR!!!
see if remember what i was even talking about now. it goes somethign like this:
even if you buy the notes, that is all yuove done. you now own the notes, just like the note holder in front of you. the foreclosure problem is still there. just becasue the house is empty and yuo now own the note on the house, doesnt mean the foreclosure is gone. snice the property was sold on a land contract, the tenants are not tenants, they are considered buyers since a L/C is considered a purchase and not a lease. these BUYERS now have an equitable interest in this property, and ni order to get them out, they must be foreclosed on. even if they have already left on their own, their equitable interest remains. to seize it, it must be foreclosed.
now, in order to stop foreclosure, yougot a couple options or so. FIRST, you can buy the note, pay the buyers their amount of equity (try a short sale with their half and the owners half), and get it all on paper! SECOND, buy the note, let the buyers back in their property (assuming they want in) and continue on he road the last owner went down.
but in my opinion, if the FIRST option doesnt work, let it finish foreclosure, and then try to buy it on the courthouse steps. that way you get it free and clear of any liens or equitable interest. but to do that, your gonna have to outbid the current owner, he aint gonna let his property get away cheaper than he thinks its worth. and on top of that, he can take it back for the amonut owed to him without even paying a penny out of his pocket. so itll be hard to outbid him, he bids 5K over that price, hes out 5K, your out a bunch.
the THIRD idea is probably the best one assuming the contracts between buyer and seller dont stop it specifically. since the buyers (tenants) have the first right of redemption under foreclosure lows. try to contact them directly and work up a deal with them. they can get it back withuot biddnig, so you can squeeze in front of the forecloser. offer to catch up their payments, and buy-out their end of the contract, with an assignmnt fee or whatever else it takes to make them happy. after the payments are caught up, and if the original contracts dont disapprove of assignments, then you can get the property subject to their original L/Cs. this should be a very minor amount of down money compared to a full blown purchase, and you get to buy the property at the price before appreciation while the buyers have been rooted in.
ive shot my mouth off long enough i guess, those three ideas shuold give you a good idea of better ways to get in this place than an actual purchase, assumnig you dont have too much money laying aruond and worried abuot the amonut of dust settling on it? next time ill try to wrap it up in under 50,000 words, big goals i know, but ill give it my best shot.