All Forum Posts by: Tim Czarkowski

Usually they just put "Tenants" or "Unknown Occupants", so they would not actually be served. Also I don't believe they have any grounds to answer in the foreclosure case. As long as the tenant has a long term lease when the property is repossessed they can stay for the duration of that lease. They would then pay rent to the bank. If the bank sold it they would then pay to the new owner.

Since I am not the one who defaulted on the loan they cannot enforce their assignment of rent clause on me.

Just type average foreclosure time in Florida and you will get a ton of articles confirming it. I know it's hard to believe but it's actually longer in New York and New Jersey.

Ned Carey Yes that is exactly what I mean. So I am the owner of the property at that point.

P.S. I just learn how to do the @ thing but it wouldn't do it for you Maire

Yes it's seems to me that they would have to notify me. I have recently switched to a new attorney because my previous one gave me incorrect information more than once. So I'll have to ask the new guy about it.

I am talking about future purchases. I have been planning on getting started for a couple months now but I have had my money tied up elsewhere for a while now and am very conservative with what I keep in reserves. I also have been hoping to get more information from people who are active in it.

Yes the reason it takes three years is because the courts are so backed up. I believe it used to average more like six months from start to finish before the crash. It also seems like the banks don't want to dump a bunch of properties at the same time and depress prices even further. Yes three years is the average that people can get away with out paying their mortgage and I have heard of people that have been in their home for 5+ years without paying. It is absolutely insane. It's like giving a underwater homeowner a huge incentive to stop paying, 3 years with no mortgage or rent. For most people that could allow them to save a large chunk of money. Even worse though my wife has a coworker,who is capable of paying, but has been bragging about not paying her mortgage for the past three years and then later talking about her new car and 60+ inch TV. The lack of pride some people have is truly disgusting.

Here in Florida foreclosures are averaging about 3 years from start to finish. 4 months sounds like too short of a time period for the strategy to be effective to me. My plan is to check for a Lis Pendens if there is not one great. If there is, as long as it had been no longer than 6 months I should still be in a good position. How do you go about getting them to give you notice when they start action? My attorney told me specifically that they had absolutely no requirement to do so but that they may. Thanks for the input.

I plan to explain the situation to them. That the bank will repossess the property, most likely in a two years or longer, and that they will be able to stay for the duration of their lease even if it is sooner. That is why I have them sign a minimum of a year lease so they are protected. I believe in disclosure.

I really appreciate your help. How do you estimate how long you have till repossession? I am not currently doing anything to postpone foreclosure. Although my contractor apparently has some experience with it and is prepared to help me. He is a fairly knowledgeable guy but I wouldn't have enough faith in him to do it without understanding the process myself. Can you recommend any resources to research it? Do you handle it yourself or have someone who handles for you?

It seemed to me also that houses would be better because of lower HOA fees compared to condo's for the amount of rent generated. The only thing would be the extra maintenance. Do you usually pay the taxes and HOA dues.

Have you had any other problems specific to this strategy?

Sorry for all the questions but your the first person I have come across who is actively pursuing this strategy. Thanks for the help.

I usually aim for $10,000 to $15,000 in profit but my purchase price is low at between $25,000 to $60,000. In addition to the low price range I also try to do as little work as possible to have it ready for sale. It's see it as a mix between wholesaling and flipping because I do take title to them and do a little work but I do mean a little. I also usually sell for cash to other investors, generally landlords.

Down here in Florida I would say the majority of investment properties are selling for cash. Being a landlord myself I also purchase with cash and then refinance out. Landlords are going to be much more likely to pay retail or close to retail then a wholesaler and/or auction bidder. A wholesaler has to have their margin to resell the property again where a landlord is going to be focused on their cash on cash return in most cases.

I haven't purchased anything yet but I spoke with my title agent and some other investors and they all seem to it is a practical strategy. The main risk that everyone has told me is that the bank will foreclose sooner rather than later. I wish I was able to find someone who is actually doing it so I could get more detail on possible risks. In any case I expect to start with two or three purchases over the next few months and see how it goes before i plow too much into it. There is some information on one I did not intend buy here.

http://www.biggerpockets.com/forums/41/topics/71946-bought-hoa-lein-not-on-purpose

I have this one rented out and should have my investment back within a year from now. I haven't had any problems and the bank doesn't appear to be moving ahead with the foreclosure. I would never have paid that much for one on purpose. If I had got this condo in the $3,000 to $5,000 range I would have made a very nice return. Another thing to consider is buying HOA liens on houses because the fees will be much less and the rent higher and so earn a better return. You would be much more likely to have expensive repairs to make to get it rented out however.

I would love to hear anyone's experience with these, intentional or not.

Did you just knock on the door and ask or how did you go about that? Also I spoke to an REO agent a couple days ago that said he gets in to almost all the unoccupied ones because he has they keys that the banks use. He also said he meets with other REO agents and trades keys. I wouldn't exactly call it legal but it sure would be useful.

If you have decent credit use an FHA loan. They only require 3.5% down and you can finance the closing costs.