All Forum Posts by: Joe Liu

Simon Campbell Thanks Simon for the detailed response. Lynn is on the right track. From what I understand in Oregon is that you have the right of redemption only at the original loan amount, because if the loan is worth $200k, and the ARV is $100k and the bank starts the min bid at $50k and someone acutally wins the property at min bid for $50k, then the original owner can just redeem at $50k which wouldn't make sense. I heard they must redeem it at the original loan amount which is why they never do.

On the flip side, have you ever heard of a 2nd lien having a 2 month right of redemption and if so, how does that work in the worse case scenario meaning, if the 2nd lien holder redeems there right of redemption, does that cancel out the owners right of redemption or can the owner then come in and redeem it back now from the 2nd lien holder? Or vice versa - the home owner redeems his right of redemption and then the 2nd lien holder comes in and buys it back from the owner.

I know that is an unlikely scenario, but what is happening in Oregon is that groups will buy the rights of redemption from the owner before foreclosure and then buy the property at the auction. Another investor might want to come in and buy the rights of redemption from the 2nd lien holder who doesn't want it and is letting there 2nd lien go away, so an investor might give the 2nd lien hold a few hundred for there rights of redemption and now you have sort of a rights of redemption situation.

Thanks guys!

Hi guys, does anyone have experience with the "right of redemption" law? So what I am wondering is if a Judicial foreclosure happens and lets say the house is worth $200k. They for whatever reason let it go to something stupid like $30k in property taxes, could I go out, seek out these x-owners with the "right of redemption" and buy the right of redemption from them and then pay off there $30k + fees and then take over the property?

Also, that 2nd part of this law - "by submitting notice to the Sheriff not more than 30 and not less than 2 days in advance of the redemption". Does this mean, redeem the right of redemption within 6 months. Once I pay off the outstanding loan, after 2 days, I have to let the sheriff know?

Also, I heard that if there is a 2nd loan on the house, that the 2nd loan has 2 months right of redemption. If anyone is from Oregon, have you heard of this?

------------- pulled this off the Oregon website ------------
Is there a right of redemption in Oregon?

Oregon has a post-salestatutory right of redemption for judicial foreclosures, which would allow a party whose property has been foreclosed to reclaim that property 180 days after the sale by making payment in full of the sum of the unpaid loan plus costs and by submitting notice to the Sheriff not more than 30 and not less than 2 days in advance of the redemption.

Thanks!

Joe

Thanks for the replies guys!

Will - thought about that, but the points would probably be more then the fees id have to pay just sticking to what I have right now since I can refi in 6 months after LLC title seasoning.

Steven - Do you know of any good lenders that you work with that might be able to do the refi without any LLC title seasoning (6 months under an LLC).

Thanks!

Joe

Hi guys, so about 9 months ago, I picked up a house at auction (thats a long long time ago now that I look at it). Pretty much a nite-mare since then. Original costs to rehab were guessed around $25k. Once we got in there, it ended up being way more and the house had to be gutted. Got it up for sale. Had some bad contractor work that killed a few deals upon inspection. Decided to turn it into a rental instead and refinance the hard money since i was told that would be the best plan while we got the things fixed on the house during the summer since our cash flows were depleting quick (and basically get money back from the contractors). Got a great renter in there but the refi came back with a problem after 2 months. They said they can't refinance the hard money loan since we are under a s-corp and not an llc. Checked with 2 other banks and same story. We have to now pay a bunch of hard money penalty fees, transfer the title on the house from an s-corp to an llc and then let it season for 6-12 months. I can't sell this house to a home buyer since there is a renter in it with 10 months left. Been trying to sell it as an investment property but the return on it is only 7-8%, so no bites yet. I am losing about $300 bucks a month currently which isn't to bad (rent minus hard money loans and taxes, insurance, etc.), but still hurts.

Would love to get some ideas if there are better ones then just waiting the 6-12 months out. I would acutally like to get the hard money loan off my books since half of that is a family hard money loan and they would like there money back now.

Total hard money loan is around $100k.

Any ideas?

Thanks guys!

Joe

Hi guys, I am pretty new to bigger pockets and even newer to lease options. I've listened to some pod casts on lease options and have a good general idea. I've started doing wholesaling and have come from a background of doing rehab flips. With wholesaling, I am thinking I can tie in lease options if it doesn't end up being a wholesale deal. However, I think I am in the same boat as John W. with trying to understand the whole thing to early. Can someone point me into maybe the best few first steps I should take and a place where I can get sample contracts for lease options? Thanks guys!!