How do you find out which mortgage company owns the note on a house?

Question

I found a house that is trashed and vacant.  I've met with the owner of the house and he told me he is several months behind on his mortgage but has decided to let the bank have it back even though he admitted he's had no contact with them. I asked him to let me know who the mortgage company is so I can try to make a deal with them before it goes to foreclosure and he hasn't gotten back with me and is ignoring my phone calls and texts and it's been over a month. The county is telling me they don't know who the mortgage company is.

Account Closed · Answer

What information did you get?  No one at the bank/lender/servicer will speak to you about the loan unless you have a signed authorization to release information. You fax that to the lender and once it's in the system the lender will work with you. If your plan is to try to buy the note, it is highly unlikely that the lender will sell an individual note.

I'm all for deal making and I like working with bad loans.  But save yourself days/months of frustration and get that signed authorization if you need to speak to the lender.

Melisa Gingrich · Answer

Kristine Marie Poe , I'm getting the hang of this. Okay, the deal isn't going to work. I did get an authorization signed by the owner and K. Marie, it was exactly as you said. They won't just let me make an offer. She told me the owner has to list the house with an agent for the short sale and then it's open for bids. He's not willing to do that and would rather it just complete the foreclosure process that has started. If I stepped up to the plate and bought it straight out from the mortgage company, it would cost me about 40K more than it's worth. Thank you all for trying to help this newby.

Tom Mole · Answer

Congrats, @Melisa Gingrich! I suppose I'm a bit skiddish about "owners" who turn out to be squatters. I'm glad this is going to work out well. It renews my faith in humanity a little. :)

If you plan to do more deals like this, I'd still recommend you get friendly with a title rep. If you build a relationship, they can help you with your preliminary title work for free or very cheaply. Often you can get them to do title searches for certain types of property and provide lead lists, such as non-owner occupied, multiple finance liens, higher than average or lower than average purchase price, etc. They'll do this for you expecting you to use them for your paid title work, which is totally fair. Nothing like having a title rep vested in your success.

The same sort of thing can be said about having a good relationship with a realtor who understands what you need as an investor and is vested in your success. They can often get you direct or indirect access to the MLS in your area giving you an advantage over the competition.

A divorce, probate or bankrupcy attorney who's vested in you success can fill your lead pipeline.

Keep in mind that real estate investing is a team sport, so build your power team as you go. As the saying goes, "keep your friends and your power team closer." (OK, maybe that's not the original quote, but it should be.)

Sorry to cast aspersions of doubt on your deal. That was not my intent. I just didn't want to see you get tricked.

Again, congratulations on your new deal. I'd love to hear how it goes.

All the best.

Account Closed · Answer

The "mention function" can be a bit touchy.  You start by typing @ followed by the first few letters of the person's name.  Names should appear at the bottom of the reply box and you can select the correct one.  You can only mention those already in the thread and/or someone with whom you are colleagues.

Regarding the short sale idea:  Normally, if the property is upside down, the lender won't just start negotiating with you for an acceptable payoff amount. Most lenders will require that the property be listed on the open market as part of the short sale process.  They will typically require additional documentation and hardship evidence from the borrower.  So short sales are often not the best way to buy a property for your desired price directly from the seller.  Maybe you'll get lucky and this lender will accept a direct payoff offer from you.  But I doubt it.

There are other ways though.  What is the value of the property, as-is?  What's the amount of the unpaid balance?

Melisa Gingrich · Answer

I am brand new to Bigger pockets so I don't know how to respond highlighting your names when I respond to you. Do I click on the "Connect" button under your names? Anyway, K. Marie Poe and Tom Mole, I got the information for the person I need to speak with and the owner is currently faxing in his authorization to allow me to speak to her about his loan. I am learning as I am going. If they will authorize a short-sale at a price I feel is equitable given the estimate of repairs I have received from my husband's friend that owns a construction company, we will be in business! I am trying not to get my hopes up but at the same time am excited about my first real estate transaction!

Melisa Gingrich · Answer

I know I met with the owner Tom Mole because I found him through the county records. Good news since I posted that this morning, I met again with the owner! After five or six texts back and forth with him, he finally responded and we met for coffee and he game me the information I needed. I'm on my way home to try and make a deal!

Sam McPeek · Answer

@Melisa Gingrich You could also do a property search with the County Assesor. Our county has a online search function that allows me to look up the address and see the owner of record, last purchase price, tax assessed value, plot info, and property tax history. That's all free, and I would try that before paying for a title search.

Tom Mole · Answer

@Melisa Gingrich, are you sure that you met with the actual owner? How can you be sure? Anyone can say he's the owner. You may be looking at a property that's already bank owner with a squatter.

Do you know a friendly title agent? A title company can run a preliminary title report that would show the owner of record, a list of outstanding liens and the holders of those liens. Do that first. Don't waste time or aggravation on an "owner" that doesn't even know who the mortgage holder is.

Get the title report, find out who really holds an interest in this property and get back to us. If this is really a great deal, let's get it into your portfolio!

All the best

Darrell Wild · Answer

Check with a local title company as any debt on the property will be recorded.

How do you find out which mortgage company owns the note on a house?

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