NOTES... walking a fine line

[Rondell Garcia]

I have a lot of questions regarding notes. Like in all things. I want to make sure that whatever I do, it is on the up and up. So with that said I wanted to know the following. 

In a recent discussion, the following was said about NOTES:

Originally posted by @Patrick Desjardins:

The biggest issue is obvious - north east judicial states with potentially long foreclosure times and very expensive litigation. Most investors don't want a note where the average exit is going to take longer than a year (or two in NY).

Me personally, the only thing I would look at on that tape are vacant houses that would work with reo-to-rental. Which, given NJ taxes and bad winters, would be very few if any of the notes offered.

Parking that kind of money into one or two loans in the north east is a terrible idea if you don't know what you're doing. .... .... ....

My question is... is it 'illegal' to approach the homeowner and make an offer/agreement to buy them out , or let them know that you will be purchasing their mortgage note from thier bank and that you would like to come to agreement or settlement with them, BEFORE you actually buy the note?

Is that wrong to do?

Is getting a signed contract stating that the curr homeowners will be leaving the property after a 15-30day period with a small buyout; legal before seeking/purchasing the note?

Is any of that legal, AFTER you have the note?

Isn't that what wholesaler before they approach you any way?