Posted by Fred K.B. (SoCal) on January 25, 2002 at 07:21:47:
Good points Ron.
Mark, if you do go forward you may be able to inspect the interior by requesting a showing from the Realtor who has it listed.
And since it’ listed, you might consider just making a lowball offer through the listing agent. You’ll be protected since you’ll be buying “retail”, but you might get a price closer to “wholesale” because you’re dealing with a motivated buyer.
Foreclosure question - Posted by Mark
Posted by Mark on January 24, 2002 at 20:53:13:
Questions on a foreclosure. . .
I recently found a house that?s in foreclosure at the county courthouse with a listed price of $29,875. Sale is in March. I called the lawyer who?s representing the person holding the mortgage (not a bank). He said when it comes to auction that they will bid 32k to keep the property. (Realtor has it listed for 45k) He said that I could contact the mortgage holder directly and buy their position as first on the mortgage or come ready to make an offer on the property on the sale date at the courthouse. There is also a second position listed on the mortgage. He said that it needs to go through foreclosure with 60 day redemption period to free the title from the second lien holder.
Question.
Is this to complicated for a first deal?
I?d need a hard money lender to pull this off, right?
Is there enough potential profit there to make this a go??
Is the lawer right? Will the 2nd position be cleared going through foreclosure?
Help . . .
Re: Foreclosure question - Posted by Ronald * Starr(in no CA)
Posted by Ronald * Starr(in no CA) on January 25, 2002 at 24:29:56:
Mark-------
"Is this to complicated for a first deal? "
Too complicated for a first deal? Maybe. You should know what you are buying. You should see the inside if you can. Usually in foreclosures you can not do so. You should also independently varify what you think the property is worth. If you can not be clear on the value, don’t buy at the auction.
“I?d need a hard money lender to pull this off, right?”
Sorry, I don’t have access to your financial statement or bank account balances. I can not judge this.
“Is there enough potential profit there to make this a go??”
For whom? Not me. It has not sold for $45K when exposed to the open market. It is probably worth less than $40K. The listing price was probably determined in an effort to pay off the two loans and the listing agent’s commission. This is a common occurance with over-priced listed properties heading for the auction block.
“Is the lawer right? Will the 2nd position be cleared going through foreclosure?”
Foreclosure laws vary from state to state. Since you don’t state the state, it is not possible to answer the question about the 2nd surviving the foreclosure process. Here in CA, the junior obligations are wiped off of the property. In many other states that is so also.
I would suspect that the attorney knows enough law to give you correct answers on this matter. But, I don’t know this attorney, so I could be wrong.
Mark, my opinion is that foreclosures are for investors who are already experienced with real estate, not beginners. I urge you to not spend time and effort on foreclosures at this stage of your investment career. Hold off, doing more conventional investing while you learn. Then, in a couple of years or so, take a look at foreclosure investing to see if it is something you are willing to attempt.
It is a very risky business. It requires a person who is very cautious. Also, the foreclosure investor has to be bold, putting out tens of thousands of dollars, hundreds of thousands of dollars on a single purchase, ususally without seeing the inside of the property.
Sounds like a contradiction? Yep. Foreclosure investing is NOT for everybody. Only a small percent of the population can pull it off successfully consistently, in my opinion.
Good InvestingRon Starr***
Re: Foreclosure question - Posted by MATTIE FLOWERS
Posted by MATTIE FLOWERS on March 06, 2002 at 07:39:31:
CAN A LOAN ASSOCIATION TAKE YOUR WORK AND PUT IT ON YOUR HOME LOAN?