All Forum Posts by: Johnny Duke

@Philip Traynor & @Wayne Brooks I see. I don't think I realized how many fees play into the price to really bring the number up. Seems that the best case scenario for the bank is that the Owner catches up with payments, but going through foreclosure nearly guarantees the bank will be losing money. 

Thank you both for the response. 

I imagine anyone that reads the title will think "no such thing", but what I'm looking for is just a very boiled down summary of the numbers involved in a typical foreclosure process.

For simplicity, assume a home is purchased for $100,000. Owner puts down $20,000. Bank Loans $80,000. Five years go by: Owner has $30,000 in home equity, but lost job, missed the last 3 months of payment and is now in pre-forclosure with no hope to get back on track. 

What is the bank looking to recover in foreclosure? 

1. Are they going after the $70,000 left on the loan + any missed payments and fees? 

2. Or are they going after interest that SHOULD have been generated on the loan? 

3. If the property value has increased, are they after the $70,000 loan + fees + market value ?

And what about Owner? If she/he sells the property they can avoid foreclosure and avoid the credit hit (and maybe turn a profit), but what if they try to (or have to) ride it out, and the home is foreclosed on them: 

1. Do they get the equity that they put in, minus fees? 

2. Besides the initial missed P&I payments , do they tack on even more fees because they went all the way through the foreclosure process?

3. As investors, how much are we helping them in the end if we can work a deal to prevent foreclosure?

I know there are a lot of moving parts in the foreclosure process so it's difficult to speak on such general terms, but I appreciate any feedback!

- Johnny

@Chris Martin Thanks for the link there. I ended up reading through the laws late last night and didn't see anything that would suggest you can't contact a homeowner about the foreclosure process, as long as you're representing yourself, i.e. you can't be a real estate agent contacting the home owner for an investor. That's what I understood at least. Thanks again!

Wake up thread! @Jay Hinrichs so in Oregon you can't reach out to people in pre-foreclosure/foreclosure at all (e.g. through mail), or is that just in regards to cold calling? 

Hello! We are also new to the community, so welcome!

@Karen Margrave Thank you! It would probably be a lot less fun drinking beer and talking real estate by yourself in an empty room.

@Grayson Graham Awesome! We've actually been here in Bend since 2013, but we are new to the real estate game! And yes - we would love to climb with you anytime. Have you gotten out to Smith yet? It's really a beautiful place to climb. 

We are certainly interested in talking about hard money with you. We are going to try to lock down some private funding if possible, but always open to other options and opportunities. And thank you for the bank recommendation. We will be looking into that and if we end up talking with Alan we will make sure to mention that you recommend him.

And yes! I'm interested in the BP meetup! @Karen Margrave mentioned it to us a couple days ago. I won't make the next few because I've got this home project in Colorado that I'm doing, but don't forget about us! We will plan to be there either late fall, winter, or early spring (whenever we make it back to Bend)!  

- Johnny

@Dmitriy Fomichenko Thank you! We started the podcasts at the beginning and are plowing through them. Both the podcast and the UBG seem to be great resources especially for new to real estate people like us. Thanks for the recommendations and guidance.

- Johnny

@Josh Garner that's too many coincidences not to hang out! That's wild. What's your wife's name if you don't mind my asking? Also I know/knew a few Garner's in Memphis - do you still have family there? What kind of contracting do you do and what company are you a broker for? It's like 21 questions over here, I know.