All Forum Posts by: Chad U.

I am not an investor, well, not an investor of real estate property. My question is along the foreclosure line and seeking the right answers and/or information. So, I inherited my father's assets when he passed in March 2023. First, JP Morgan & Chase hit me with a foreclosure lawsuit and named almost anyone in this suit, State of Florida, construction company, the elections. So, the condo LLC had gotten the suit against them dropped and turn around and filed another suit against me. JPM&C is owed $71k (mortgage and interests) and the condo LLC is owed $15k. The condo LLC suit was first to auction which took place the day after my birthday in July. The surplus was $63k, that check is on it way to me now. JPM&C final judgemental was the end of August and the property has another auction set on October 16th, 4 days from now. What are the scenarios that can happen with this second auction? I have a little, tiny bit of understanding in that there could be another surplus fund involved. I actually just want the banks to get their $71k so that when I start probate on the bank accounts no one at all can claim any of the monies from the few bank accounts. From what I know that after 2 years has passed since his death no company or no one can claim money owed to them except a mortgage and monies owed to the mortgage lenders. So, what can come about from the auction on the 16th? I mean from JPM&C side, the buyer/winning bid in the first auction? Am I in anyway liable to the first buyer? I was never liable in any of these suits, I was never and will never come out of pocket and can only put into my pocket if not $0 into my pocket. What are the few possible outcomes that can play out this coming Wednesday? If anyone has any insight I appreciate it, and as I said I am not a real estate investor and can understand if no one responds. Thank you, truly.

Sounds like someone way overpaid at the HOA foreclosure auction, hence the surplus funds. The 1st lienholder, being JPM by the sounds of it, is within their right to foreclose and will knock the HOA buyer off title. If there is equity in the property then there could potentially be another surplus which you are entitled to as well. But regardless of whether the bid at auction is less then JPMs judgment, they cannot collect anything further given your father is deceased. It's what's called an IN REM foreclosure, so the estate would not be on the hook for anything else.

0 Votes

Fort Lauderdale, Florida

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?

As others have mentioned above, the first lien might have a large payoff leaving you with little to no equity. Definitely run a title report on the property. There could be significant liens against it which could take precedent over yours if they are superior. Also they could be involuntary liens such as code enforcement or other municipal fines which also are superior to the 2nd.

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.

If it's ordered to be demolished then there is likely a condemnation against the property. This could be a massive undertaking (ask me how I know)

1 Vote

Saint Petersburg, Florida

Quote from @Barry Clay:

2 Votes

Saint Petersburg, Florida

Quote from @Soumojit Sarkar:

Quote from @Chad U.:

Quote from @Soumojit Sarkar:

I own a condo in BC but live in the US. I had issues with renting out the place earlier, and the current rent doesn't cover even the mortgage interest, let alone other expenses like property tax, insurance etc. The current tenant is about to leave at the end of the month. I'm considering selling the unit instead of finding another tenant. But not sure about it since the market is at a low point right now. At the same time, I fear that a new tenant might stay there for ever and interfere with the sale at a future date. What do you suggest?

What makes you think it's at a low point right now? Have you researched the macro fundamentals in Canada currently?

I haven't done any thorough research and my comment was not about the entire Canadian market, I can notice some correction in my local market anecdotally. I think this might be a low point because the Canadian government is trying to pump the housing market before the election next year by lowering rates, relaxing mortgage insurance conditions etc.

Yes they have been putting in all these measures to prop up the housing market as they see the pending implosion writing on the wall. Probably the most important policy change made by the Office of the Superintendent of Financial Institutions was the removal of the stress test for those who are renewing their mortgages. If they hadn't removed this there would be a lot more carnage at renewal time in 2025 and 2026.

1 Vote

Quote from @Soumojit Sarkar:

What makes you think it's at a low point right now? Have you researched the macro fundamentals in Canada currently?

0 Votes

Quote from @Jasper K Juhl:

@Stevo Sun , great to see you here on Bigger Pockets! I’m based in Austin, TX, but I’ve worked with real estate investors across North America, including a few from Canada including a few from Calgary. While Canadian-specific groups aren't as prominent on Bigger Pockets, there's a thriving community of investors here who frequently collaborate across borders, especially when it comes to cross-border investing strategies and tax considerations.

If you’re interested in connecting with more Canadian investors, I’d recommend starting by joining the BP groups focused on international investing. You’ll find investors from Toronto, Vancouver, and other major Canadian cities who share their experiences about market conditions and regulations in Canada.

For formal groups or chapters, outside of BP, the Canadian Real Estate Association (CREA) and local investment clubs are great places to connect with more like-minded investors. If you're specifically into networking with other Canadians who also consider U.S. properties, check out forums that focus on cross-border tax issues or financing strategies. It’s a niche, but a valuable one for Canadian investors looking to diversify into U.S. markets. I’ve personally seen a growing interest in U.S. vacation rentals and multifamily properties from Canadian investors who are looking for growth beyond the Canadian market.

P.S. Did you know that Canadian investors who own U.S. property for over 183 days in a year may be considered a U.S. resident for tax purposes under the “Substantial Presence Test?” Make sure to check with a cross-border tax advisor on how this could impact your overall tax strategy.

Umm I'm pretty sure the US presence test only applies to non US citizens who are actually physically present in the US for over 183 days, not for owning property. Otherwise there would be a whole slew of foreigners that fall into this camp.

0 Votes

Quote from @Lawrence Croom:

If I were to purchase a property at the auction that is foreclosed for first mortgage but has code enforcement liens, will the code enforcement liens go away after I win the bid and pay off the mortgage or do the liens stay on property and I am responsible for them?

They will with most certainty likely stay. Depending on the amount, and the municipality you may be able to mitigate those down some.

0 Votes

Quote from @Walter Eggers:

Hey BP!

I'm new to the community and looking to buy a foreclosure as my primary residence and my first BRRR (of sorts)

I am a General Contractor so the repairs do not scare me at all. What does scare me are hidden fees or liens on the property I cannot currently see. Specifically I see a solar system on the house but am wary because I do not know if it is a PPA or leased system... or owned for that matter.

Are there any Auction.com gurus out there that can help me figure out this deal? I would LOVE to connect if someone is willing to help.

Sometimes Auction.com provides a title report, and not buy one yourself

0 Votes

Quote from @Dan Deppen:

If you are originating the CFPB rules are the same for a land contract or mortgage, so I don't see any benefit to creating a land contract. I buy existing land contracts all the time but I wouldn't create one in any state. If I was going to create one PA would be the very last state I would do it in.

I ended up with one of the Harbour originated land contracts. The AG wanted me to convert it to a mortgage, which I was fine with. But the borrower wouldn't cooperate, things dragged out, and the AG started making vague threats. Eventually the borrower signed the cancellation and new mortgage, with a big reduction in his loan balance, and we got through it. But it was like dealing with the mafia.

Yes the same thing happened to me as well. I was on the attorney general's speed dial list for about a year. We too were forced to convert the land contract into a note and mortgage, at a huge reduction in the loan balance I might add as well. By the time we paid the legal fees to our lawyer to do the conversion and the reduction in the balance of the loan took a major loss.

0 Votes

Quote from @Mike Farr:

Hey all,

Im looking to do a title check and instead of paying a company a few hundred;
I was wondering if anyone has a good experience with websites like "beenverified.com" or other methods to check for liens/title issues?

Any advice would be great. thanks.

Do NOT use beenverified for this as it rarely picks up everything.

0 Votes

All Forum Posts by: Chad U.

Chad U. has started 40 posts and replied 1704 times.

Post: Second auction of property in 3 months...

Post: Advice for a begging note investor, What am I Missing?

Post: Advice for a begging note investor, What am I Missing?

Post: Hold on sell

Post: Hold on sell

Post: Canadian Real Estate Investors

Post: first mortgage and code enforcement liens

Post: Looking for help valuing a property from Auction.com

Post: Using land contracts

Post: Title and Lien checks