Posted by Rob FL on May 31, 2000 at 19:46:29:
That sounds like the strategy I will probably take.
Judgment buying - Posted by Rob FL
Posted by Rob FL on May 31, 2000 at 12:54:04:
I found a 2nd mortgage that for 16K that got wiped out in foreclosure a couple years ago. The promissory note is still good, but apparently the foreclosed noteholder has done nothing with it. I did some checking and the foreclosed owner (who is still personally liable) has some other property in my county with lots of equity. I plan on buying the note cheap and then telling the the debtor that he needs to start paying me or face a lawsuit.
My question, does anyone have any tips on approaching the noteholders. I know they are going to ask me why in the world I would actually pay them $100 or so to take an assignment of the note that they wrote off along time ago.
Check BK records before you buy! - Posted by Bob H
Posted by Bob H on May 31, 2000 at 18:19:37:
If the maker on the note filed bankruptcy (before or after the F/C), the note is uncollectable.
You can sign up to check BK records online. Sign up is free & the cost per page is around $.07. the site is at http://pacer.cob.uscourts.gov/
Re: Judgment buying - Posted by JPiper
Posted by JPiper on May 31, 2000 at 15:31:19:
Why don’t you tell him that if $100 seems too high…what lower amount would he prefer?
JPiper
Re: Judgment buying - Posted by phil fernandez
Posted by phil fernandez on May 31, 2000 at 13:26:49:
Hi Rob,
This is an idea right out of Joe Kaiser’s Totally Dominate Your Foreclosure Marketplace course. And I bet that’s where you got this idea. And a good one I might add.
Most people don’t realize that while a 2nd mortgage might have been wiped out at the foreclosure sale, it still is collectable. The 2nd is no longer secured, but the payer is still personally liable. I never realized this until I read it in Joe’s course.
This presents a nice money making idea. Especially Rob with the guy owning other property with equity.
The question than becomes how do I explain to the note holder why I want to even give him $100 for the note. I guess I would be up front and just tell him that there are companies out there that buy these old notes for pennies on the dollar with the remote chance of ever collecting the debt. I imagine that in the noteholders mind, he is thinking that this is water over the dam and uncollectable.
Let us know how you make out and I’d like to hear the response from your note holder.
Re: Judgment buying - Posted by Ben (NJ)
Posted by Ben (NJ) on May 31, 2000 at 13:24:35:
Why not tell them the truth (to a degree) that you
purchase charged off unsecured “deficiency” judgments because at some point (which could be decades) the debtor attempts to clean up his credit report and although it is a long shot, he may have to deal with that judgment. It may wind up being nothing but aggravation (which is true) which is why you need to discount it so heavily. The fact that you have found assets is none of their business.
Re: Check BK records before you buy! - Posted by Rob FL
Posted by Rob FL on May 31, 2000 at 19:21:58:
Thanks for the info. I had already planned on doing a quick check. I doubt he had a bankruptcy though because of some other info I found in the public records.
As for the BK’s on the internet. I already looked at the site a while back. Unfortunately the Middle District of Florida, where I am it, is unavailable. But the good news is that the Federal Courthouse is only 10 miles from my home.
Re: Check BK records before you buy+JOE KAISER HELP - Posted by dewCO
Posted by dewCO on May 31, 2000 at 19:03:26:
I would assume the BK would have had to listed the defaulted notes in order for them to be uncollectable?
Because if the BK didn’t list them in the BK then they would still be collectible? So how many people remember to add them to the BK if they think they were wiped out by forecl.? Bob, how much experience have you had with this kind of stuff and have you bought and collected any? What is the best line to explain why you want to buy “worthless” DOTs??
Maybe Joe K would help on this one too!!!???
Thanks, dewCO
Re: Judgment buying - Posted by Rob FL
Posted by Rob FL on May 31, 2000 at 19:42:54:
The main thing for me is to avoid tipping the noteholder off that there might be some $$$ to collect besides the $100 I will offer.
Re: Judgment buying - Posted by Rob FL
Posted by Rob FL on May 31, 2000 at 19:45:46:
Thanks for the info. Actually, I was reading through Joe’s course again the other day and that is what reminded me of this bad paper. And sure enough the foreclosed owner has assets in the public records. (I guess he didn’t read any of Bronchick’s material about getting things out of your personal name.)