Lots of Equity and in Default - Posted by CC

Posted by JT - IN on November 02, 2001 at 13:16:12:


Burn that saying into your brain, when dealing with foreclosures, because the obvious is NOT the obvious.

You may be looking at a 2nd mortgage that is foreclosing, and there may not be as much equity as you think. Or, it could be another judgement foreclosing; the possibilities are endless.

You should check to see how many liens are against the property, and who, and which order. Compare that against who is foreclosing, to determine the exact situation.

Teh approach on foreclosure is to try to emulate Columbo, on the TV series. Look for clues as to what is happening and who the guilty party is. Do not rely too heavily on what the homeowner tells you, because folks in financial difficulties have been known to tell a story or two.

What’s not shown on the Notice of Default could be plenty. All you are seeing is the direct action of that party, that is bring the action. It is not their place to tell you what other issues might exist, as they are only attempting to collect a debt for their client.

Try to contact the owner, after you have done some research at the courthouse. I like to know the answers to most of the questions, then ask the owner the same questions, to determine if they are being truthful with you. (Just like Columbo does it, on TV).

Not unusual that the property is not for sale, infact most foreclosures aren’t for sale. This sometimes puzzles me, too. But, what this would say to me is, the owner isn’t planning on selling, and if in fact there is a lot of equity here, this may look more like a Bankruptcy, that is getting ready to take place, in order ot stop the foreclosure sale.

Find out all the facts, then re-post with some more questions. Maybe we can help you make some money her, or maybe jsut help educate you on foreclosures; either way, YOU WIN…


Lots of Equity and in Default - Posted by CC

Posted by CC on November 02, 2001 at 12:37:57:

I came across one property that’s on the Notice of Default. Deatils are

FMV - $102,000
Face of the Loan Amount - $16,148
Deliq amount - $2,075
Property built in 1965
Assessed value in 1998 - $100,324

I think I have some vague ideas of what to do. For example, buy the property with cash for $70,000, bring it to current, and flip it for 85,000. But I doubt if the seller will go this low since he has high equity and he doesn’t owe a lot.

Should I do title search on this property to find out if the property is delinquent on 2rd or tax or child support or others?

What’s not shown on the notice of default?

The property is not for sale now. I haven’t talked to the owner.

Can anyone give me some suggestion on how to approach this?

Thanks to all posted on the board.


JT is absolutely… - Posted by David Krulac

Posted by David Krulac on November 02, 2001 at 20:06:23:


There was a foreclosed property once, that we researched that had very little owed, something like $2,000. It didn’t seem to make sence that a person would lose a property with a couple of acres and a small house over a couple of thousand dollars.

Well a title search revealed that the owner had no other debts except for $1.2million federal tax lein!