All Forum Posts by: Joshua B.

@Scott Matthew C. - interested to see how flip in Ypsi turns out. I may post some pictures of the one I'm doing in Ann Arbor once that's complete. Hope life is good and the deals are plentious!

@Marcin Kuczynski - that's great. Sounds like it's closer to a 1% risk than a 50% risk. Just read the statute on taking possession during the redemption period due to abandonment, follow the procedures, and you should be able to get the house within three weeks from the date you close.

@Marcin Kuczynski - it doesn't matter who bought the loan. If the house is in the redemption period, the former owner can sell the house in order to pay off the redemption amount. If the old lady was the former owner, was foreclosed, and is currently in her redemption period, she can still sell the house and use the sale proceeds to redeem. 

A sheriff's deed doesn't vest as legal title until after the redemption period expires because the former mortgagor (the old lady) retains legal title until then. During the redemption period, the holder of a sheriff's deed (the mortgagee or the successor to the mortgagee) only has equitable title. 

@Marcin Kuczynski - why would you buy the house and pay more for the sheriff's deed than what the redemption amount is? If there's equity in the house (let's say you're paying $40k for the sheriff's and the house is worth $75k), the homeowner can just sell the house during the redemption period, pay you out the redemption amount stated in the sheriff's deed, and you'll lose money. 

The only way this makes sense to do is if (1) you're certain the homeowner won't sell the house during the redemption period and (2) you're certain there's a healthy amount of equity in the home. S

@Jake Thomas - thanks for the info. I'm gonna do a bit more looking into this, but I may be in touch. Are you an independent agent or are you with a larger brokerage?

Hey BP - I'm a metro Detroiter looking at buying an off-market deal near the DeltaPlex in Grand Rapids / Walker. I realize that's the best area of Grand Rapids, but can anyone offer any more insight on the area? Up and coming? Old and busted? Gentrifying?

@George P. @Keith Jourdan - I heard through the grapevine that the developer of those big, modern apartments on Main/Plymouth Road near Old Town is having a very difficult time filling that place up.

Curious to see what the Bigger Pockets take on property in Old Town Plymouth, MI is. Personally, I'm torn.

With the other part of Plymouth booming, I could see buyers shifting their focus that way. It's less expensive, has plenty of cute houses, and it's still walkable to downtown. On the other hand, it's a bit grittier at this point, is close to the trains, and is less accessible in terms of getting to/from the major roads.

@Jordan P. - meant to delete that part...typed that before I fully read his questions...woops!

Not giving legal advice here, but I've never heard of any servicer requirement in Michigan and I don't see why there would be one. A servicer is simply a party that handles the administrative portion of the loan (collecting payments, sending notices, etc). The holder of the note is always the default servicer and they have incentive to do a good job - they want to get paid! Now, the note holder can separate the right to receive payment from the servicing rights (which happens to many loans sold on the secondary market) but I don't see why it'd be a legal requirement. 

Think of it this way. I own my house outright and provide owner financing to sell it to my cousin. I get a note from him and take a mortgage on the house. Why would the state of Michigan require me to hire a servicing company to handle this? Hint: it wouldn't.

I assume the note you're buying is from a person (not a bank) since any bank note/mortgage would have a due-on-sale clause preventing you from engaging in this arrangement.