Posted by phil fernandez on February 23, 2000 at 13:33:09:
It would appear that you have a great opportunity in front of you if the property is truely worth $38,000 and the mortgage amount is only $20,000. I’m assuming this is a properly executed and recorded first mortgage.
You say that the holders of this $20,000 mortgage just want out. Offer them $12,000 to $15,000 cash for the mortgage. Once you have purchased the mortgage you will have to foreclose on the mortgagor. No big deal.
Let’s say after you foreclose and get the property back, you have to put $5,000 worth of repairs into it.
- repair $5,000
- mortgae $12,000
And that’s the way to make money.
Before doing any of this consult a local attorney who does foreclosures and learn your state’s foreclosure law backwards and forwards.