12 houses 1 note I need Help!

[Richard Graham]

Got a deal Bird Dog brought me. The man owns 12 houses all on one note owes $1,000,0030. Bank is foreclosing on the note so all house are going with it. Community Bank. Man just wants out and some help. How do I approach this. Do I short sale the whole note at one time. Or each house individually. Or should I offer to buy the note from the bank. I do have a private investor that would be interested if possible. Looking for some advice thanxxx

[Scott Hubbard]

Originally posted by Richard Graham:

Got a deal Bird Dog brought me. The man owns 12 houses all on one note owes $1,000,0030. Bank is foreclosing on the note so all house are going with it. Community Bank. Man just wants out and some help. How do I approach this. Do I short sale the whole note at one time. Or each house individually. Or should I offer to buy the note from the bank. I do have a private investor that would be interested if possible. Looking for some advice thanxxx

1. Find out if it is a portfolio loan or was the loan to a business and the businesses' assets were colateralized. Chances are it is a portfolio loan where there is a single note secured by the 12 properties.

2. Get a copy of the note to and read the default terms. It should help you clarify how default is going to be handled.

3. As soon as possible, get an authorization to release and contact the community bank to make an appointment to see the underwriter immediately.

I have limited experience in pooled or portfolio transactions, but the bank will likely have the ability to unwind the properties and sell separately.

I would get each property under contract separately, then approach the bank to see about doing a bulk deal. Doing ten separate foreclosures is costly and the bank will likely be interested in listening to your proposal.

If the loan is in default, buying the note is also an option and is the preferred method since closing on 12 properties is very expensive for both you and the lender. Expensive for them equals discount for you.