All Forum Posts by: Neil Sinha

Hmmm.  No objective data, but have been through there over the years.  I think since they've converted Brooks, that area has started to clean up and get more commercial.  Could be a growth area, but I'm just speculating.

What will the property rent at?  If you take out the 50K in equity at 30yr fixed rates, will the property still cashflow?

@Ron S. Thanks for the info.  So, it seems the gamble here is what other bidders will drive the price up to.  I'm planning on going to monitor how the various properties I've been analyzing bid out, but knowing what to expect before I arrive will help.

@Account Closed, Awesome advice, just what I needed, thank you. The first mortgage was a $95K note executed in 2005 on a property now with a FMV ~$165+ in an area that will likely continue to appreciate well (good side of town). Don't know how the auction will go, but wanted to understand and learn.

@Gail Greenberg is it possible they have reserve prices where if no one reaches that prices they buy it back?  I thought I'd seen that where they will buy back properties that don't have sufficiently high bids.  I'm sure it's the first mortgage based on which instrument is cited in the foreclosure notice.

@Brian Ploszay: Thanks. I wasn't looking to invest in the note.  I was trying to find a way to buy the property, either at the auction or pre-foreclosure.  I know if I try and go pre-foreclosure, the second lien would still be in play, but wanted to understand what would occur at the foreclosure sale in this situation.  I hadn't seen many situations with a second lien written concurrently to the first to the same lender, so needed some insight.

Hello. Newbie here. I'm looking at the foreclosure list in San Antonio for next month to scout for deals. I found a property where the owner bought by signing two notes at closing: a $95K first lien mortgage and a $23K second lien purchase money agreement with the same lender. The first lien is going to foreclosure. If the sale was to go through, it would extinguish the second, correct? But since it's the same lender, they'll likely set their reserve bid high enough to account for the 2nd lien balance, correct? It appears it was a VA loan (serviced by Ocwen) and is currently held by Deutsche Bank. Could the 2nd note have been resold elsewhere and therefore the trustee may not have it in their reserve price? The deal would be good if the 2nd lien is extinguished, but not if the balance on both has to be paid. Thanks for any help explaining this situation as I get better at deal analysis.

Got the REI itch over 10 years ago after reading Rich Dad, Poor Dad, and signed up for the $8K Rich Dad Coaching program that boiled down to a bunch of Kiyosaki branded books and tapes and a weekly call telling me to find a local RE investor that is doing a bunch of deals and learn from them (wait, I thought that's what I paid the $8K for, was to learn from you). Then, while I was building my professional team like the coaching program instucted and was hungry to find a deal, any deal, the mortgage broker I had met said he had an off market deal. Seemed one of those beat up houses with a motivated seller like I saw on TV, so I executed a sales contract with him and paid an earnest money deposit directly to the seller. Turns out he had signed an earlier sales contract with his next door neighbor with a specific performance clause in it, and she filed a lis pendens to enforce the sale. I was out of luck. Soured me on trying again for a long time, and I've only recently started my education back up and tried to get into the game.

@Bret Blackburn: Texas only has a right of redemption for tax and HOA foreclosures. Mortgage foreclosures have no right of redemption.

Hello. I'm a new investor trying to shift from prep and analysis to finding my first deal. I'm trying to focus on the BRRRR strategy. I've lined up enough capital to engage in cash offers and so I'm looking now at foreclosure notices. I see one in my target market area that I think might be a good prospect for me:

FMV: ~$132,000 (Property is in the same subdivision as my primary residence where I just got a HELOC and I've adjusted my appraisal value for square footage and a garage conversion. Unsure of condition until I get inside).

Property was sold to current owner and her deceased spouse in 2004 with an original $72K mortgage that is now in foreclosure.  Spouse passed in 2011.  There are no second liens or deeds of trust recorded with the county.

Rent comps in the area would conservatively suggest $1100 for 3/2 with this sq. ft, possibly up to $1200.

Auction is on Sep 5th.

Does anyone have suggestions on how to approach this deal?  It's less than a mile from my home, so I can go knock, but I want the right tact considering she's likely in this position due to loss of her husband.  She's 53 from what public info I can find, so has a lot of life ahead of her.  I want to be sensitive but not miss a deal and this is my first attempt.  Thanks for any advice.