Posted by JT-IN on July 16, 2003 at 22:19:31:
The transaction to purchase a Note & Deed of Trust, (or Mortgage depending upon whether a Mtg or Deed of Trust State)… is a contractural arrangement between the Lender and the Investor. There is NO authorization or permission from the Debtor required.
How this differs from a Short sale, is that a Short Sale is a triangular relationship, between the Borrower, the Lender and the Purchaser of the property. In the deal for the paper, it is strictly a between the Lender and the Investor.
Have you been in contact with the Lender yet…? Who is the Lender…? (Only reason for asking is I may have dealt with them in the past, and if so, could offer some suggestions).
I just got a deal done where there were three mortgages, totaling over 1.3 mil, (way over-encumbered), which I was able to buy for 187,750. The property is worth about 450K to 500K. After purchasing the paper, the owner deeded the property to me for 2K… Now I have a 10K sq ft office bldg, free and clear, which is generating around 80K per year gross; 55K yr net… These deals can and do happen, but this one took some PERSISTENCE. About 12 weeks in total, of calling the Bankers each week, making offers, following up, and eventually moving in for the KILL.
If you want to discuss this deal in more detail, feel free to email me on or off the board. Wish you all the best on it…