Posted by NJdave on April 06, 2000 at 18:43:02:
In the scenario that you’ve described, the first mortgagee probably won’t budge. You are more likely to strike a settlement with the second mortgage lienholder. To effectuate a short sale, you must have the cooperation of the Seller, and the lienholders.
my .02 on the value of ‘foreclosure’ lists - Posted by NJDave
Posted by NJDave on April 06, 2000 at 15:14:24:
Actually, publications that assemble and furnish notices of lis pendens, or as some call them, ‘pre-foreclosures’
I’ve read posts that say that the info is dated and ‘the good ones’ have been picked over. To some degree, that’s true. But their value should not be discounted. Some of my best deals have resulted from lists that are 6 months to a year old. (by this time, many mortgagors have defaulted on their CH 13 plans and desperate for an alternative to losing their homes at Sheriff’s Sale)
Most folks who are first served notice that their mortgage loans have been foreclosed are in denial. They’ll waste precious time exploring conventional non-foreclosure alternatives before they’ll consider ‘creative’ strategies.
So, for real estate speculators, early intervention isn’t always fruitful. Timing is everything!
If you are a BNK atty, or subprime lender seeking new business, then yes, the freshness of info is important.
I’ve been working foreclosed, but not yet REO properties for almost 20 years. I can’t tell you how many times (earlier in career) that I’ve worked the ‘foreclosure’ lists and actually contacted the homeowners BEFORE they themselves have been served with a summons and complaint in foreclosure. I’ve learned that they are much more motivated after realizing the severity of their pickle.
To what publication do I subscribe?
Foreclosure News of New Jersey. Good articles, fresh info, but they don’t offer a classified section. They’ve got a toll free number and an e-mail address. If interested, e-mail me.
Re: my .02 on the value of ‘foreclosure’ lists - Posted by JohnH
Posted by JohnH on April 06, 2000 at 15:45:16:
I have noticed you reference in a few posts now the “foreclosed but not yet REO properties”. Would you mind elaborating on the strategy that you employ in this niche. Also, why do you choose to use the word “speculator”, do you consider this area of foreclosed but not yet REO property a risky venture?
John
Re: my .02 on the value of ‘foreclosure’ lists - Posted by Sheik
Posted by Sheik on April 06, 2000 at 15:39:02:
Hello NJDave;
But by the time you wait around for these homeowners to ‘realize’ their predicament, their loan balances are close to if not already surpass the FMV of the property.
Unless you are doing a short sale ( which I know is your specialty), then I don’t see a deal.
Please elaborate.
Sheik
Re: speculator vs. investor - Posted by NJDave
Posted by NJDave on April 06, 2000 at 16:01:33:
Most of the folks who I’ve spoken with that respond to my posts are not ‘investors’ in the true sense because they have little or no money of their own to invest, but instead invest their time and expertice, and rely upon creative financing techniques or other strategies. These folks I call, ‘speculators’ or ‘entrepreneurs’ but not investors. Some may disagree, but we are all entitled to our own opinions.
Re: The Art of the Deal - Posted by NJDave
Posted by NJDave on April 06, 2000 at 16:12:53:
This week I’ve successfully negotiated reductions and/or discounts of at least 50% of debt on three separate deals. How does that translate to FMV?
If the Client chooses to sell the property, that’s a fair profit.
Negotiating debt - Posted by d.moren
Posted by d.moren on April 06, 2000 at 18:31:58:
When you negotiate reductions or discounts on debt, how do you do that?
Is it simply a matter of contacting the lender and appraising them of the situation?
I know of a property with a reasonable 1st but a large 2nd, that is on the verge of foreclosure. As it is it?s overpriced so no ones interested.
If I could negotiate down one or both of the notes there might be a deal there.
What would you say?
Thanks,
dennis