All Forum Posts by: John Slater

If you are in a non-judicial foreclosure state, then most of the time the lender will be the one the borrower contacts to beg and plead for an extension. Whether they get it depends on a number of circumstance and the reasons. 

That said, there are many services who will instruct the borrower to communicate everything with the foreclosure trustee, that wasn't the case 3-4 years ago but it's starting to happen more and more. If the borrower has to communicate with the foreclosure trustee, ultimately the foreclosure trustee will get the final answer from the lender, they are the ones pulling the strings, and yeah its crazy to force borrowers then to the foreclosure trustee, but it is what it is... so in answer, sometimes the lender, sometimes the foreclosure trustee.

@Tosh Larsen awesome stuff... I am a strong believer in communities, great places to learn.  Just curious, while looking at sub2, do they teach one or several lead sources, and which is your personal lead choice you are focusing on?

@Madison Malek I vote for getting your license.  I started on the investing side in 2013, got my license in 2018, wasn't excited about getting my license, but from a cost perspective, you're only talking about one transaction to cover your really costs and make a profit (friend of family member).  It can also create opportunities to represent yourself in transactions thus putting any commission into your pocket.

Sure, the market isn't hot right now which makes being an agent a tougher place.  It comes down to your mindset, your work ethic etc, there are people selling, there are people buying, but this lull will weed out a lot of agents.  There's a super high percentage of agents who quit in their first year... it turns out it's not as easy as people think, but when was making good money ever easy???? 

I would sign up for a simple online course in your state to do whatever pre-requisites they require to take the final exam.  "Kaplan" will be a little more expensive than others, but a good company.  I wouldn't sign up for classes in person, too expensive and time consuming... doing online means you do it in your spare time while focusing on whatever else you do for work.  

Working with a client I came across a lender, Dyke-O'Neal, based out of Texas who seems to be buying old second loans from companies that went out of business during the 08/09 crash, but buying them during 2021-2023, then waiting 11 months and foreclosing on borrowers.

As example of one would be a $66,000 loan from 2006, bought by them, in July 2022, foreclosing notice issued for $175,000 June 2023. This by the way is not calling the whole note due, this is the NOD, with a default balance of $175,000, plus then whatever is owed on the loan.

These borrowers have no chance and no recourse from what I can see.

I've seen a couple of attorneys from Florida posting about these guys, but wondered if anyone had come across them in the foreclosure world?  

Quote from @Sarah Jordan:

I am brand new to REI and have been watching the auction properties. I found one that seems to have a very high resale value for the relatively small starting bid price. It was built in 2019, and from the looks of the pictures, shouldn't need too much rehab if any. What are my first steps to knowing if this is a good deal and finding a buyer? If it goes to auction before I can get in touch with the buyer, is it too late?

Thanks in advance!

Hi Sarah, I would start by focusing on trying to connect with the owners before auction stage.  In california you can't wholesale auction properties as funds are required immediately at the bid.  Being the winner means paying up there and then.  I'm assuming Tennessee is different ?

Quote from @Beau Alesi:

Quote from @John Slater:

Quote from @Beau Alesi:

Geez..ok. Didn’t ask for an opinion whether or not bank will accept. Nice how you gave you negative(but maybe correct) opinion and failed to even a acknowledge my question about flipping it. 

 At least @Wayne Brooks gave you some input. Giving you advice on flipping something you are super unlikely to get at that price point is like suggesting how you will spend the lottery when you don't win it... For what it's worth, with that much spread, I'd spend the time and money to evict the tenants, then flip it and sell it... but, curious as to how much is owed on the loan? you say short-sale, but is it short because of what you want to offer, or short based on a $675k sales price?

 My friend said he owes $900K+

My answer still stands, f you get it at the number you want, then for sure evict and move on. Obviously you can try, but if 900 owed. Sale value at over 600, that chances 400’s being accepted should be zero. 

Quote from @Hanna Brown:

Hello All! I am interested in acquiring pre foreclosures to buy and hold as rental properties. I am not a licensed RE agent or attorney, just an investor looking to increase my portfolio holdings. My original plan was to door-knock at potential homes that have received NODs and make cash offers to the owners.

After reviewing some previous BP threads, it seems this is rather tricky legally, since I am not a Foreclosure Consultant. Is there a way for a person like me to legally acquire property in this manner? I would plan to hold the properties longer than 24 months, so as to avoid the 80% equity share. I would avoid renting to the owners in default, since I learned that is also legally fraught. What other considerations are there in this strategy? Is it potentially feasible?  Anybody successfully pulled this off? Would love to hear about your experiences and insights.

Hi, you'll read and hear about homeowner's rights and protections, foreclosure consultants etc and equity skimming things and how you can be prosecuted etc etc.  That being said, I'm in california and have door-knocked for 10 years on pre-foreclosures.  Yes I know people who got in to trouble, but thats because the deal they put together took complete advantage of a homeowner, and an elderly one at that, so heck yeah they deserved to be prosecuted.  
That being said, I work as a realtor and investor to help people avoid foreclosure, of which selling is an option to avoid foreclosure, depending on their circumstances and their needs will depend on how to sell and at what price.  Someone who is 5 days away from losing everything at auction is different to someone who just entered the foreclosure process.

Quote from @Beau Alesi:

Geez..ok. Didn’t ask for an opinion whether or not bank will accept. Nice how you gave you negative(but maybe correct) opinion and failed to even a acknowledge my question about flipping it. 

 At least @Wayne Brooks gave you some input. Giving you advice on flipping something you are super unlikely to get at that price point is like suggesting how you will spend the lottery when you don't win it... For what it's worth, with that much spread, I'd spend the time and money to evict the tenants, then flip it and sell it... but, curious as to how much is owed on the loan? you say short-sale, but is it short because of what you want to offer, or short based on a $675k sales price?

Quote from @Philip Traynor:

Hi Chad, 

Generally speaking, you are correct that a probate court can unwind the foreclosure sale for up to four years after the date of death.  It is rare, but it does happen.  The more practical consideration is that no one will write a title insurance policy for that property until the 4 year statute of limitations runs.  

However, there are a number of caveats that may make this not an issue.  For example, if this was a reverse mortgage and the cause of the default was the death of the borrower, this is fine.  If the law firm conducting the sale has properly addressed any heirship interests, this may be fine.  Who is the firm handling it?  Feel free to message me if you don't want to share specifics here.  

Hi Phillip, curious to know, if the foreclosure trustee auctions the property without any knowledge of borrowers death, therefore not knowing if probate is or isn't required, would they still not issue title insurance?  Does the foreclosure trustee go as far as checking in to whether borrower is alive or not before or during auction?  

Quote from @Chad Coleman:

Quote from @John Slater:

assuming its a mortgage foreclosure sale (not tax or HOA) there is zero right of redemption after a foreclosure sale. so by 'moot', just means it doesn't matter. I believe it's the same as california where I am. In essence, once the foreclosure sale goes through, the borrower, homeowner, homeowners relatives (with probate) would have absolutely no right to come back for the property.

Do however get title checked for any additional liens that might show up, just in case, but if numbers make sense there's no reason not to bid and no worry about chain in title.

 Thanks John, here is what I read that concerns me:

"Texas law is clear that if a dependent administration is opened within four years after the death of the mortgagor, a foreclosure sale conducted in the interim between the mortgagor’s death and the opening of a dependent administration will be voided on the request of the dependent administrator to the probate court. See Pearce v. Stokes, 155 Tex. 564, 291 S.W.2d 309, 310–11 (1956). 

Title check is good and no additional lines, yeah I am really convinced since I am very familiar with the area and the recent sales but if what I understood from above is correct, 4 years is an awful long time to risk it! But this is out a research paper so not sure how applicable in real life especially with title companies. 

That’s an interesting mess to solve if that’s the case. You buy it, flip it, sell it, that’s another change in title, not sure how all that gets unraveled.