All Forum Posts by: Bradley Bissett

Thank you all for the advice. Heres how it turned out. After much research and leaning on my professional network i was able to attain both properties at the phenomenal price. This circumstance is extremely rare for two reasons. First, most mortgage holders, banks in particular appraise the properties they are foreclosing on prior to Sherrif sale so that they understand the market value and dont underbid. Second, most homeowners also only sell for current market value. In this case i had a low sherrif sale price, far under market value and an owner who was willing to sell for the bid amount and deal with the shortfall/deficiency on her own just to be out of the stressful mess that she was in. 

What i was unaware of is that after a sherrif sale takes place the mtg. transforms into a "sherrifs deed" no "mortgage" technically exists any longer. This was a newsflash to me as a banker. You learn something new every day. So basically the mortgage company had 2 loans after sherrifs sale, a sherrifs deed on the properties for $xx and an unsecured loan for the deficiency balance.

It was a great learning experience for me as a real estate investor and as a banker. So thankful for all that i have learned 

The difference between the sherif sale price and loan balance should have been charged off by the bank. The bank cannot pursue any $ above the sherif sale from the borrower.

Hello everyone. I am a commercial loan officer at a small community bank. I've been a lender for 10 yrs and seen so much in this short timeframe. Safe to say we operate in a totally different way than a big bank does. With that being said, this question stems from unfamiliarity w large banks. Particularly their dealings w foreclosed ppty. I have stumbled upon a great opportunity to purchase 2 houses that were tied up in the same mortgage for whatever reason and at an incredible price. The 1st house fits my families needs for more sq ft as we have one child 2yrs old, w twins on the way :) the ARV on this one is out of this world. The 2nd home is a perfect hold property as I consider it the worst house in the best neighborhood and it only needs a roof. Already rented to a great local guy. The big bank bid at sherif sale...the redemption period will be up in a few months. I wish the owners would have told me before the sherif sale but here we are. ugh. Since learning of this opportunity I viewed the houses and I signed a PA w the current owner, cash offer for slightly more than the bid price. Now we will see if the sellers financial advisor can get the PA in the hands of a knowledgeable person who can make a decision to sell. I recommended they contact the atty named on the redemption certificate but I'm sitting tight for now and letting the advisor take a crack at it bc I don't want to overstep too soon. I figure the bank should take the offer bc that's what a small bank would do. Cash offer, first offer usually the best etc...sheriff sale already happened so they can't go after the seller for the deficiency of the loan. This stops the bleadkng for the big bank for this relationship....BP- in your experience will a big bank move on a sale like this(after sherif sale but before the end of redemption period)since I have the owners signature on the PA and the cash price for what they hold? if it all works out it would be a huge blessing to not only me but to the seller as well. I plan to help them in as many ways as possible. Pay it forward. Super Nice ppl from our community w crazy circumstances. They just want their houses to go to a member of the community who will treat them well and I'm wondering If it can happen given the bureaucracy of a big bank. I greatly appreciate your help and thk u for taking the time to read such a long post. :) -Brad

Thank u for all of the good pointers. I really appreciate it.

I have renovated my house and flipped another successfully. I've got some experience but pretty green still. The money made on the flip paid off my wife's student loans which is awesome but now I don't have capital for improvements on this new opportunity. The new opportunity is to buy a house in my hometown for $58,500. The asking price is $63,500. I think this deal is a no brainer at $50,000 but the seller is a very experienced aging real estate investor so $58,500 was as low as he'd go. That was months ago and the house still had not sold. After renovations I think the house is worth $79,000 given my hometown market. 3 bedroom 1 bathroom 1500 sq ft. I can put money down but then I would have to borrow for the improvements. Which goes against the debt freedom I'm currently experiencing. Or I could borrow the whole purchase and Reno cost but then I'm left w a home that breaks even as a rental or flip. Is this a walk away situation? The house could be so nice and I feel like i can add some value but again it won't pay dividends for a long time. Should I buy and rent immediately and fix it up as I go bc it is on slightly above average condition. Should I buy and ask the bank of mom and dad to invest $5k w me. My wife supports me and has helped me think this through but I'm wondering if we're missing something. I'm drawn to the bones of this house. It's solid and on a dead end street which I love, and a baseball toss to the huge city park. Any ideas would be greatly appreciated. Thank bp nation! -Brad

Thank u so much :)

Does anyone recall what #podcast discussed the potential profitability in mobile home parks? Any help would be greatly appreciated. Thx -brad