All Forum Posts by: Barry Clay
Barry Clay has started 1 posts and replied 7 times.
Post: Advice for a begging note investor, What am I Missing?
- Posts 7
- Votes 1
Quote from @Chad U.:
Quote from @Barry Clay:
Quote from @Chad U.:
Quote from @Barry Clay:
Relative beginner here, I put an offer on a 2nd lien for 14K non performing note in Florida. The home is in foreclosure and the judge just granted the note holder a default judgment . The back taxes are 2k as the first lien. The note has a UPB of 32K and the property is worth 200k Seller is wiling to finance the note purchase. Im confused why note seller would be selling the note at this point before auction at such a deep discount. Am I missing something? shouldn't the foreclosure allow the note holder to recover cost and profit at auction or by ownership of the property?
I think you're spot on here. I ordered a title report, but the back-to-back hurricanes have caused delays. However, I discovered on my own that the city ordered the property to be demolished in 2022, which I’m okay with. I haven’t found any fines yet, but once the city is back on its feet, I'll follow up on that. Hopefully, the fines will be included in the title report.
Ouch, I love rebuilding property but I definitely don't want to get hit with a condemnation order.
How bad was it ?
Post: Advice for a begging note investor, What am I Missing?
- Posts 7
- Votes 1
Quote from @Barry Clay:
Quote from @Wesley I.:
@Barry Clay
You mentioned 2nd lien, is the first lien performing? Why is it in foreclosure? Did the owners pass away? This can drag on for years..
It doesn't appear that the owner has passed away based on what I’ve been able to uncover. He owns another nearby property that is up to date on taxes and well maintained.
This particular property, however, is in a dilapidated state and has a city order for demolition. I’m expecting the city has likely applied a wonderful assortment of fees, which I anticipate discovering soon.
Post: Advice for a begging note investor, What am I Missing?
- Posts 7
- Votes 1
Quote from @Wesley I.:
@Barry Clay
You mentioned 2nd lien, is the first lien performing? Why is it in foreclosure? Did the owners pass away? This can drag on for years..
"It doesn't appear that the owner has passed away based on what I’ve been able to uncover. He owns another nearby property that is up to date on taxes and well maintained.
This particular property, however, is in a dilapidated state and has a city order for demolition. I’m expecting the city has likely applied a wonderful assortment of fees, which I anticipate discovering soon."
Post: Advice for a begging note investor, What am I Missing?
- Posts 7
- Votes 1
Quote from @Chad U.:
Quote from @Barry Clay:
Relative beginner here, I put an offer on a 2nd lien for 14K non performing note in Florida. The home is in foreclosure and the judge just granted the note holder a default judgment . The back taxes are 2k as the first lien. The note has a UPB of 32K and the property is worth 200k Seller is wiling to finance the note purchase. Im confused why note seller would be selling the note at this point before auction at such a deep discount. Am I missing something? shouldn't the foreclosure allow the note holder to recover cost and profit at auction or by ownership of the property?
I think you're spot on here. I ordered a title report, but the back-to-back hurricanes have caused delays. However, I discovered on my own that the city ordered the property to be demolished in 2022, which I’m okay with. I haven’t found any fines yet, but once the city is back on its feet, I'll follow up on that. Hopefully, the fines will be included in the title report.
Post: Advice for a begging note investor, What am I Missing?
- Posts 7
- Votes 1
Quote from @Chris Seveney:
Quote from @Barry Clay:
Relative beginner here, I put an offer on a 2nd lien for 14K non performing note in Florida. The home is in foreclosure and the judge just granted the note holder a default judgment . The back taxes are 2k as the first lien. The note has a UPB of 32K and the property is worth 200k Seller is wiling to finance the note purchase. Im confused why note seller would be selling the note at this point before auction at such a deep discount. Am I missing something? shouldn't the foreclosure allow the note holder to recover cost and profit at auction or by ownership of the property?
I have a few questions:
1. Who is foreclosing the first or second?
2. Is this in Florida?
Note, if its the 2nd that is foreclosing, then you will need to begin paying on the first. If the first is foreclosing, are you prepared to pay off the first and bid at auction to protect your interest?
There are many reasons why someone sells a note, and it could be for good or bad reasons. As a buyer this is something you should be able to identify based on your due diligence.
- The judge granted the current second note holder a default judgment because the defendant failed to appear in court and respond to the summons.
- Yes, this is in Florida.
This property is located in a desirable area in Florida. I’m willing to pay off the first lien, which, to my knowledge, is only around $2,000. However, the title report I requested has been delayed due to the hurricane.!
Post: Advice for a begging note investor, What am I Missing?
- Posts 7
- Votes 1
Quote from @Barry Clay:
Relative beginner here, I put an offer on a 2nd lien for 14K non performing note in Florida. The home is in foreclosure and the judge just granted the note holder a default judgment . The back taxes are 2k as the first lien. The note has a UPB of 32K and the property is worth 200k Seller is wiling to finance the note purchase. Im confused why note seller would be selling the note at this point before auction at such a deep discount. Am I missing something? shouldn't the foreclosure allow the note holder to recover cost and profit at auction or by ownership of the property?
I ordered a title report, but it's been delayed due to the hurricane. However, I discovered an order from the city to demolish the property dating back to June 2022, so I'm expecting to uncover a number of fines. This would already be in violation of the conditional purchase agreement, as it wasn’t disclosed upfront.
Post: Advice for a begging note investor, What am I Missing?
- Posts 7
- Votes 1
Relative beginner here, I put an offer on a 2nd lien for 14K non performing note in Florida. The home is in foreclosure and the judge just granted the note holder a default judgment . The back taxes are 2k as the first lien. The note has a UPB of 32K and the property is worth 200k Seller is wiling to finance the note purchase. Im confused why note seller would be selling the note at this point before auction at such a deep discount. Am I missing something? shouldn't the foreclosure allow the note holder to recover cost and profit at auction or by ownership of the property?