Note Buying?

[Edmundo Garza]

Hey folks, rookie in South Texas here.  Found a house in my neighborhood, it is to go to foreclosure auction May 2016. I was able to make contact with the bank that is holding the note. I was told that I could buy the note and that I would have to go thru with the auction date but I would be able to set the start bid.  If it sold, I would keep the difference of my purchase note price and the auction sale price... If it did not sell, i would then become the owner of such property...  I had never heard of this, can someone give me some advice?    

[Jay Hinrichs]

@Edmundo Garza   this is not very common ... I have used this strategy many times.

So this must be a local commercial bank.. I would assume..

You just need to look at it like any other deal.

whats it worth in as is condition.

are there owners in it is it vacant.

and how much profit do you want to make.

Many times smaller commercial banks just are not set up to Handle OREO and would prefer to just cash out and walk.. does not mean there is something sinister behind their motivation to sell.

Nothing finer than to buy a note a few weeks before the Foreclosure sale.. show up at the sale and watch others bid the thing up.. knowing that you paid X for the note and they paid Y and you made the delta..