Preforeclosure - Did I do wrong?? - Posted by mark

Posted by JohnBoy on April 08, 2002 at 23:51:11:

She signed an authorization to allow the lenders to talk to YOU. You ended up buying the second from the LENDER. I don’t see where you did anything wrong. The house is in foreclosure which is public information. The mortgages are recorded which is public information. ANYONE could freely get any of that information from the courthouse. ANYONE could call up a lender and negotiate to buy any mortgages they have. You don’t need anything from the borrower to buy a mortgage they have with a lender. So you could have purchased that second without ever having talked to the seller. You could have noticed the foreclosure notice, checked title, got any information about any mortgages against the property and called the lenders offering to buy their notes. You don’t need anything from the seller to do this.

You purchased the second, you now own that note and the investor buying the property will have to pay you the $27k balance owed to get clear title! Plain and simple!

Besides, what’s the problem anyway? She said the investor agreed to pay what she owed! So tell him to just pay you what she owes! $27k!!!

This has nothing to do with the other investors deal. How would you be messing up HIS deal??? You done nothing wrong. You just purchased an existing mortgage and you got a good discount on it! Nothing wrong with that. It’s done everyday. Lenders are always selling off their mortgages. They sell it, notify the borrower that it’s been transferred, they are instructed to send future payments to the new note holder. End of story!

So you have nothing to do with the investor’s deal! Although, depending on the note you have if it has a DOSC in it, then the investor may be the one messing up your deal as the note holder if tries to buy this property subject to or something without paying you off! LOL You could foreclose for violating the DOSC in your note! LOL

Has this investor contacted you about the second yet? If he hasn’t even contacted you then how could you even be accused of messing up his deal??? Unless he pays you the full balance owed, then it sounds to me that HE will be the one messing up his own deal if he promised the seller to pay off what she owed! Well she OWES $27k on her second! So tell him to honor HIS agreement and just pay you off! What difference does it make if he paid you the $27k or the other lender the $27k??? It’s $27k that is owed no matter who he has to pay! So pay it!

But you see where this is going. What he’s really saying is, HE was hoping to buy the notes for a discount himself. But you beat him to it! So now he has to deal with YOU instead of the lender. He knows that, now that you own the note its going to cost him more! He knows he moved in on your deal you were trying to make with the seller and since the seller hadn’t signed a contract yet, HE jumped in and got her to sign with him! Oh well, such is life! He got his contract with the seller. You purchased the second on the property. Now he just has to pay you off!

Me, I’d make him pay the whole thing!!! LOL

Well, maybe not. How much would you have made if you would have done the deal with the seller? I would certainly want more than just my $5k back though!

If he was to end up backing out of the deal, would you show up at the sale and pay off the first to protect your second? If you weren’t willing to do that then I would try to work something out with the investor and offer to sell the second to him. Maybe for $15k and I’ll settle for a faast $10k profit! :slight_smile:

But as far as the seller going to an attorney…yeah? And? Go ahead! You done nothing wrong. SHE is the one who authorized the lender to talk to you. You ended up buying the note from them. So I don’t see a problem here! So unless this investor pays you off as the second lien holder, as he promised the seller he would do, then he’s the only one messing up his own deal here!

Since you asked for input,

This is my input and just my opinion!

Preforeclosure - Did I do wrong?? - Posted by mark

Posted by mark on April 08, 2002 at 16:34:16:

I need some input on this one…

House is in preforeclosure worth probably 112k. First is foreclosing with FJ about 82k…I took assignment to the second mtg of 27k…I got it for 5k. Third is not negotiable so far and sale is three weeks out…they want all 6k. Here is the story.

Lady gave me written authorization to talk to the lenders and get payoffs and such, but did not want to sign a contract or deed if I couldn’t promise to purchase the property and clear her name from mortgages. I decided to work the deal anyway and got all my figures…in the meantime she said she was going to contact a person who promised to buy her house flat out and pay off everything. I had already placed open house ads but when house and when I arrived she said she’d just signed a contract with the other investor/buyer. So I left. I had 14 potential buyers lined up.

The next day I sent a 5k cashiers check to 2nd lender and took assignment to their mortgage and planned to negotiate with the investor or even recoup our money at the courthouse. I then sent her certified letter letting her know I owned the 2nd and asked if she could give me the phone number of the investor who she signed with. Now three weeks later I get a call from the owner who says I went behind her back using information she supplied to get her mortgage at a discount. The owner of the contract told the owner she can go to an attorney because I’m messing up his deal…

Does anyone know if I did anything wrong … thanks…