Mortgage Note in Alabama. Need assistance

[Alex Harris]

Hi BP,

I'm a relatively new wholesaler (started about 1 1/2 ago) and get leads from other parts of the country sometimes. One came in the other day from Birmingham, AL and I have an idea how to handle it but want some recommendations. The situation is that he did owner financing on a commercial property with a buyer who stopped making payments in Dec 2013 but stated the buyer has the deed. He is moving forward with foreclosing on buyer but is unfamiliar with the process and is in Arizona. He also hasn't heard from the tenant since December 2013. He did find out that buyer removed everything from the commercial property (it was a plumbing business). The seller mainly wants to unload the property now without going thru all the hassle.

Property info:
2 condo's on top of a commercial building. Each condo is around 1,600 sq ft each and the total square footage for entire building including commercial side is 6,400 sq ft. The inside condition is unknown. Located in Jefferson county in Birmingham, Alabama.

I normally wouldn't waste too much time on an out of state deal where the inside condition is unknown, however he is extremely motivated and seems like a deep discount. I'm really cautious with these but don't throw leads away. If there is anyone who specializes in these type of deals, please message, respond, or call. Also if you are in the local area and knowledgeable, please respond also. Thanks!

Please note: I have never done deal like this and am not trying to necessarily become a guru, but just want to get some understanding, close this one ASAP, and/or possible partner with somebody local on it.

[Ted Schmidt]

Originally posted by @Alex Harris:

Hi BP,

I'm a relatively new wholesaler (started about 1 1/2 ago) and get leads from other parts of the country sometimes. One came in the other day from Birmingham, AL and I have an idea how to handle it but want some recommendations. The situation is that he did owner financing on a commercial property with a buyer who stopped making payments in Dec 2013 but stated the buyer has the deed. He is moving forward with foreclosing on buyer but is unfamiliar with the process and is in Arizona.

First thing the owner of the note should do is hire a local attorney or consultant familiar with the law in that area. If he has not done this then there is little chance that he has started the foreclosure process unless it is being serviced by a loan servicing company.

The next thing to do is get an assignment of rents so the owner can not pocket the rent and walk away.

Since you are dealing with a note holder, you can offer to buy the note at a steep discount and proceed with the foreclosure. I have worked as a consultant on some deals like this. This type of deal can be an alligator.