Yes, a PI could be hired to find the owner… no matter whether he owns the Note & Mtg, or he doesn’t…
If he buys the Note & Mtg, and doesn’t find the owner, then this is a bad move, as there is no profit to be made in doing so. If he finds the owner prior to the sheriff sale, gets the deed and a POA, then all he would need to do is bring the loan current. This would be a better option than purchasing the Note & Mtg…
Too speculative, w/o knowing more about the whereabouts of the owner and what has caused him not to be reponsive to the foreclosure. Odds are good that there is much more to the story… don’t you think…?
We found a vacant home in forclosure that has a sale date set for nov. 19 and the balance on the morgage is 34,000 and some change. This homes value is in the 120k range and since we cannot get ahold of the owner we were thinking of trying the back door and buy the morgage. How ever we have never done this. We just recently completed our first short sale and come across these also and wondered if we can work them kinda the same way. Do we contact the loss mitigation dept or is there a difrent place to call for buying the morgage. The short sale we did even with getting to the right people the first time it took us 3 months to get it approved how ever it was well worth the effort. but any way, if anyone has some info on how to apprach the lender please let me know.
Not sure if buying the Note & Mtg will really help you here… When the property goes to Sheriff Sale, there will be other bidders. If you are out bid, you are out bid… Assuming you have paid face value for the mtg, (which with the LTV percentage here, I can’t imagine buying this for a discount if it is truly a 1st mtg), then you will be entitled to collect on the mtg, not take title to the proeprty.
This strategy you are asking about cand and does work well, but usually with a Mtg that is closer to FMV, which you then acquire a disount to own, and then have the ability to bid almost up to FMV at any auction… In this instance I fail to see where you gain an advantage…
Do as the other poster suggested and have a title search done to insure that the position you purchase is exactly what you think it to be, without other liens encumbering equity you THOUGHT you were buying…
My first suggestions is run a title report to see if there are other liens effecting title, federal, state and county taxes, judgements, mortgages etc.
Then after getting the ‘lien report’ call the mortgage company and yes you would have to talk with lose mit but getting to them without authorization from the owners will be hard as you have no social, account number etc. just name and address. Then without authorization to release you may have difficutlty getting information from the bank regarding the loan at all.
I’m curious. If Scott purchases the note and they are the ones that have initiated the foreclosure, could he not, then, stop the foreclosure process completely since he is the new owener of that note?
I talk to Lenders all the time w/o the borrowers permission. There is no permission required when you are attempting to purchase the note and mtg… This is a Bi-lateral transaction, whihc does NOT involve the borrower at all. Of course a Short Sale is a Tri-Lateral transaction, which does involve the borrower, and therin being the reason why an autrhorixzation to release info is required. Also a contract to purchase is requred in that instance, but not to purchase a note & mtg only.
Most lenders can identify the loan with name and address alone, without having the loan # or SSN of the borrower. Some lenders will not, as a matter of their banking charter, sell a note and mtg… while others will sell a note & Mtg and not consider a short sale. Some lenders will do both. There is really no rhyme or reason here, except that it is there corporate policy, and that is what guides them to do what they do…
I have found that the key element of success, when calling a bank/lender, is to at least act like you know what you are talking about. Most times you know way more than the person on the other end of the phone, anyway. If they sense this, they are much more accomodating, it seems.
If the Lender has now filed a foreclosure on a 34K mtg balance, of a property that has a FMV of 120K, and the Debtor still won’t pay, why would you think that Scott could get them to pay either…?
I must be missing your point here… but yes, the owner of the mtg could dismiss the foreclosure… however, one must be especially careful here because there are some caveats that a Lender MUST fullfil prior to starting and stopping a lawsuit. Doing so on a whim could void your ability to accelereate the Note again… Of course this will vary from state to state.
I would say that unless this agreement was “in place” prior to purchasing the note fromt he lender, then I would be wary of any promise from the Debtor… but that is just me…
Posted by Mike (MI) on October 21, 2003 at 11:16:53:
JT-IN,
This is a BIG IF, but IF he could hire a PI to find the owner, he may be able to get a Deed in Lieu of Foreclosure. This sounds like a case where the property was abandoned.
That is the only way I see for him to secure any profits.
Mike