Posted by Bob on August 18, 2001 at 14:36:23:
Thanx for the positive reinforcement. Just when I was thinking there was too much competition out there. Just goes to show you that: “you snooze - you lose !”
Be alert to opportunities … - Posted by Merle E Woolley
Posted by Merle E Woolley on August 18, 2001 at 07:55:41:
Went to a Trustee’s sale on the courthouse steps yesterday. Almost played golf instead, but at the last minute decided to go anyway. Only one property being sold. My research showed that the opening loan balance 4 years ago was about the value of the home. Didn’t really expect the price to be attractive.
A man sitting there when I arrived turned out to be the property owner … had a letter expressing his desire to redeem the property. He was expecting a settlement on the 23rd of this month. He was injured on the job and has not worked … no workmen’s comp.
The attorney said he had to go ahead and sell the property, but could not deliver deed to the high bidder for 20 days … to allow the redemption. The settlement the man expects will not be enough to pay off the house. The most he would be able to pay is the arrearages. This is the 3rd time he has faced foreclosure on this property in 4 years. Not likely that the loan company will reinstate his loan.
I was the only prospective buyer at the sale (unusual). The opening bid shocked me! 22% less than the original loan balance. Apparently, the mortgage company wanted out of this property.
I explained to the home owner how we buy and lease option to people needing help. Possibly a way for him to keep his house.
Now, realize this … his house is gone in 20 days if he fails to pay it off. If he does our contract, he has a chance to redeem himself. I don’t know if he will pay or not. He knows that with us, he has about 16 days after the due date to pay or we begin the eviction process.
But, here’s my point … attended a sale that all indications showed to be a waste of time. Will end up making a considerable profit (unless he does redeem, then he said he would pay me interest for the 20 days our money is tied up - who cares about that?).
There are at least 10 “regular” attenders at these sales in our area. Where were they yesterday? This makes 5 similar type transactions we’ve done in the past 3 months. Opportunities just sitting there … waiting for someone to recognize them.
And, this is one we happened to see … likely to be many, many more we missed. Depends on your line of concentration … are you really watching for them?
Just food or thought.
Remember to …
Enjoy this day … TODAY!!
Merle
Re: Be alert to opportunities … - Posted by Dave T
Posted by Dave T on August 18, 2001 at 20:14:02:
“My research showed that the opening loan balance 4 years ago was about the value of the home. Didn’t really expect the price to be attractive”.
Apparently the other auction regulars did the same research you did, reached the same conclusion you did, and decided not to show up because they believed there was no deal to be had that day.