Trying to buy a foreclosure......... - Posted by TedB(OK)

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.

FMV $38,000

  • repair $5,000
  • mortgae $12,000

profit $21,000
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.

Trying to buy a foreclosure… - Posted by TedB(OK)

Posted by TedB(OK) on February 23, 2000 at 12:26:53:

I have a relative that carried the note for some people that bought their house. The purchaser of the house has now quit paying and refuses to leave. My relative just wants out of this deal, so I was thinking of purchasing the note from them. The balance on the note is $20,000 and the house is worth about 38,000. My problem is once I purchase this note from them how do I go about getting the folks out of the house, do I have to file foreclosure or is there some other way to do this. If I have to file foreclosure to get the house can anybody give me and idea what it cost to go thru the foreclosure process in Oklahaoma???

Thanks for the help!!

Procedure for Oklahoma… - Posted by BR

Posted by BR on February 23, 2000 at 19:34:01:

Better to get deed in Lieu of FC because if you FC the property MUST go to sale. The plaintiff opens the bidding. Minimum bid is 2/3 of the appraised value and if you want the property you must be the high bidder. You will get the procedes up to the amount of the judgment only, and anything over that goes to the defendant, regardless if you are high bidder or not. Now …get this, after the sale your attorney must file a motion to confirm sale and it usually takes a couple of weeks at least for the confirmation date to roll around. Theoretically the defendant can redeem at any time up to the confirmation but it rarely happens.

A sobering dose of reality… - Posted by Michael Morrongiello

Posted by Michael Morrongiello on February 23, 2000 at 16:56:32:

JoeB & Phil’s advice is sound. Either get them to deed to you in lieu of a foreclosure (remember do that title search first!) by offering them $$$ to move and deed out or foreclose on them. If they refuse to do anything there is always the possiblity of them filing that dreaded Bankruptcy. Worse case that will prolong and stall the foreclosure.

That is why you need to buy this non perfoming note CHEAP.

Best of luck

Michael Morrongiello

Re: Trying to buy a foreclosure… - Posted by JoeB(Atlanta)

Posted by JoeB(Atlanta) on February 23, 2000 at 14:19:18:

Ted, don’t forget to run title exam (even though their your relatives) to insure you’re buying what you think.

In terms of getting occupants out–I always offer them a moving allowance of anywhere from $250 to $1000 to simply move-out by a certain date. The amount varies based on whatever the deal allows and whatever it’s worth to you to avoid the time, grief and effort of a foreclosure and eviction.

Hope this helps,
Joe Brillante