Posted by Ben (NJ) on February 09, 2001 at 20:50:26:
nt
Bittersweet day… - Posted by Ben (NJ)
Posted by Ben (NJ) on February 09, 2001 at 16:55:25:
I foreclosed on somebody’s house today. Made a fortune. Investment: $30,000. Value of home $200,000.
Nearly 700% return. I thought I’d be psyched but kind of melancholy. This is what it’s all about, isn’t it?
It is bittersweet… - Posted by David Krulac
Posted by David Krulac on February 10, 2001 at 19:11:05:
Ben,
Foreclosure is not fun, I’ve been there. I sold a house with one third down to family with 2 kids. The family pays for several years until they have 50% equity. Then they get divorced. The husband “sells” the house on a verbal agreement to another family who doesn’t speak english. He takes a nice downpayment, and monthly payments higher than his payment to me. It had the makings of a “win-win” situation. HAD! The husband stops paying me anything. I file for foreclosure, he hires an attorney to file false counterclaims. We go to court and he doesn’t show. He had the kahunas to file eviction against the “new buyer” for non-payment. They stopped paying when the sheriff hammered the foreclosure sale notice on the front door. He wins in court and sucessfully evict the “new buyer”. I hate foreclosure, but the only option that I felt I had was to walk away. Under these circumstances, I would never walk away.
Good luck
David Krulac
You make me proud to be a NJ Investor! - Posted by IB (NJ)
Posted by IB (NJ) on February 10, 2001 at 19:04:34:
Good going Ben. And welcome back.
a new twist… - Posted by Mike
Posted by Mike on February 09, 2001 at 23:14:26:
…may be to look for mortgages from banks that have merged…mmm
Re: Bittersweet day… - Posted by JD
Posted by JD on February 09, 2001 at 21:05:18:
I am currently waiting to foreclose on a Judgment which is senior to a 1st TD (90% LTV), I am waiting for the mortgage company to assign the note into oblivian like in your situation. If I succeed in foreclosing off the mortgage co. I will not fell the slightest bit melancholy. Perhaps there was less owner equity in the property than you think. He probably hasnt paid his mortgage in more than a year.
Re: Bittersweet day… - Posted by Neal
Posted by Neal on February 09, 2001 at 17:36:55:
Ben I can emphathize with you, but you did the right thing. Business is business and on some level you helped someone learn a lesson. Opportunity’s are everywhere, some people see them, others do not. Some need adversity to learn lessons. You did good to seize an opportunity, you did not cause the sitution that lead to them not making payments. Continued success !
Details Ben Details nt. - Posted by phil fernandez
Posted by phil fernandez on February 09, 2001 at 17:13:53:
nt.
Re: Bittersweet day… - Posted by John STL
Posted by John STL on February 09, 2001 at 17:12:39:
Could you explain in alittle more detail? I always love to hear a good success story? How did everything play out?
Re: a new twist… - Posted by Redline
Posted by Redline on February 10, 2001 at 16:12:20:
That would be ALL banks here!
RL
Now I see the difference… - Posted by Ben (NJ)
Posted by Ben (NJ) on February 10, 2001 at 06:49:58:
usually we feel good after stepping in and providing someone with a “win-win” situation. So even though this is one of my most profitable deals by far, it is clearly a very one-sided “big-win, big-LOSS situation”, therefore it lacks the champagne corking kind of exhiliration. (but don’t worry, I ain’t giving it back!) Thanks for the support.
Here are the Details … - Posted by Ben (NJ)
Posted by Ben (NJ) on February 09, 2001 at 19:35:55:
As many of you know, I am a large purchaser of tax liens in NJ. This particular lien had all the makings of one that would get paid off long before foreclosure. It’s a nice house, good neighborhood and had a $115,000 bank mortgage on it. Well, the key here is that with all the bank assignments of notes and mega-mortgage activity, this note got LOST! Nine times out of ten the bank will pay off the lien if the property owner can’t. Here, with no bank, the owner
was in deep sh*t. What made it worse was that the owner did NOTHING for a solid year while the foreclosure progressed. Last week, when faced with final judgment, they made some lame, eleventh-hour attempt to get a mortgage which flopped. Today, the judge signed the final judgment giving them the death knell. One day, the bank will find this mortgage and have a fit!