All Forum Posts by: Account Closed

@Tom Gimer Got it. I noticed you’re an attorney in the DMV area. Can you reference the specific section of Virginia code referencing definitions of Conflict of Interest for foreclosures?

Also, would love to chat with you about an odd foreclosure I witnessed in Fairfax recently if you ever have 10mins.

And learn about your title services!

@Tom Gimer, don't the lender and borrower carry mutual interests (i.e., having the debt paid)? If so, wouldn't the substitute trustee be doing both of them a service? 

@Sam Wilson thanks for the input, that's helpful. I may ask a local real estate attorney I've started to establish a relationship with and see if he'll offer some insight. I suppose you have a point on the conflict of interest re: the opening bid. If I get some input from the attorney I know, I'll post back.

On another note, safe to presume you're familiar with the foreclosure process given the number of auctions you've participated in? I'd love to connect and even grab a coffee/beer if you're ever in VA.

Hi BP Community—

In Virginia, when a Substitute Trustee is assigned and that firm brings a property to auction, I'm wondering if that firm - or their affiliates - can bid on the property at the courthouse steps. Or, possibly an employee of that entity acting in their own interests (or, bidding as a personal investment). I realize laws are different per state with foreclosures, so I welcome feedback from people in or out of Virginia. 

I can't imagine there would be conflict of interest, right? The lender just wants their money back - who cares if the buyer is Joe Schmo on the courthouse steps or the firm assigned as the Substitute Trustee.

In summary, my questions:

• Are there any laws/code that prohibits a Substitute Trustee from purchasing the property themselves before or during the auction? 
• Why wouldn't these firms want to purchase a property that has promise to be a good investment (i.e., long-term rental, flip, etc.)?

Thanks in advance!

@Mike Dymski you mean I can theorize, and possibly falsify, market predictions and get free Crest whitening strips? Oh, the opportunities!

@Paul Merriwether thanks for your suggestion. There's several hard money lenders in the D.C Metro that also offer bridge loans. I'm not familiar with that type of financial arrangement, so will have to look into it. I appreciate the recommendation, will keep them in mind — although, I do like the idea of a local institution (more of a personal preference).

@Wayne Brooks, thanks for your response. I'll need to research the different hard money lenders in the area and discuss available options. As for the deposits, in the 8-9 counties of Northern Virginia I'm researching, most require a deposit of 10% of the original loan amount that's been defaulted on. I haven't seen a deposit exceed 20K for the type of properties I'm researching, so that would be doable. 

Roger that on the title checks. I had good luck RE Titles & Deeds with a few practice properties (retitlesanddeeds(dot)com). It was a two owner search that ran $160/search. I did my own title abstraction, then paid for their service. All checked out — granted, the two properties I chose didn't have a complex title history. 

Thanks again for the useful insight!

I also realize it takes money, specifically  cash. I’m asking about means of obtaining cash through unconventional financing arrangements. Again, other than personal finances and investors.

Also, nothing in my post implied I thought it was easy. I’m asking about forms of financing or means of obtaining cash other than personal finances or investors.

To be honest, I didn’t see anyone at the auction I’d want to network with. Half of the bidders were obviously bidders for hire, with the actual investor on the other side of the phone call. The substitute trustee (auctioneer) was less than helpful, likely because of legal reasons.

Will hard money lenders make [some of] their financing available in the form of cashier checks, with some type of financing arrangement on the back-end between you and the lender?