All Forum Posts by: KC Morgan

Hi, I'm a newbie investor with one property that I lived in for 2 years and now I'm cash flowing $600/month on it. The deal literally fell into my lap a few years ago and I'm dying to do more. I found a distressed and vacant property that my wife and I would love to house hack and live in for a couple of years. I found it last year and after a lot of work, tracked down the owner. She was extremely difficult and essentially said that if I wasn't willing to get her loan current, pay all the liens/judgements ($30k+), pay attorney fees, etc, which shockingly nobody she'd talked to yet was willing to do, then she'd just let it get foreclosed on. It is now in pre-foreclosure and I'm trying to understand my options. Option A) Buy at the foreclosure options. My understanding is that banks will usually start the minimum bid somewhere around whatever is still owed on the property. Is that an accurate statement? Obviously they want to recapture the greatest amount they can. Which in this case the property is worth less than what I believe to be outstanding on the loan Hi, I'm a newbie investor with one property that I lived in for 2 years and now I'm cash flowing $600/month on it. The deal literally fell into my lap a few years ago and I'm dying to do more. I found a distressed and vacant property that my wife and I would love to house hack and live in for a couple of years. I found it last year and after a lot of work, tracked down the owner. She was extremely difficult and essentially said that if I wasn't willing to get her loan current, pay all the liens/judgements ($30k+), pay attorney fees, etc, which shockingly nobody she'd talked to yet was willing to do, then she'd just let it get foreclosed on. It is now in pre-foreclosure and I'm trying to understand my options. Option A) Buy at the foreclosure options. My understanding is that banks will usually start the minimum bid somewhere around whatever is still owed on the property. Is that an accurate statement? Obviously they want to recapture the greatest amount they can. Which in this case the property is worth less than what I believe to be outstanding on the loan which would mean if the min bid was high enough it probably won't be sold at the auction. Will a title search show how much is outstanding on the loan? Also can I order a title search on my own or does it have to be through a title company? The property ARV is about $500k and the balance on the loan is probably somewhere around $525k. The property needs about $50k worth of work. Option B) Buy as an REO property after nobody buys at the auction and the foreclosure process is completed. The thing I don't like about this option is that it's likely I won't get as good of a deal. Who knows the bank may decide to become the flipper and do the renovation themselves. Are there any other options I am not considering? The Breach and Election to sell has been filed with the county so the foreclosure process has begun. Is there anything I can do to try and get the property prior to the auction (which here in Vegas is pretty competitive)? If I can't get it at the auction is there anything I can do to try and get it before it's offered on the MLS? This property is located in Las Vegas. Thanks for any thoughts! KC Morgan

Hi, I'm a newbie investor with one property that I lived in for 2 years and now I'm cash flowing $600/month on it. The deal literally fell into my lap a few years ago and I'm dying to do more. I found a distressed and vacant property that my wife and I would love to house hack and live in for a couple of years. I found it last year and after a lot of work, tracked down the owner. She was extremely difficult and essentially said that if I wasn't willing to get her loan current, pay all the liens/judgements ($30k+), pay attorney fees, etc, which shockingly nobody she'd talked to yet was willing to do, then she'd just let it get foreclosed on. It is now in pre-foreclosure and I'm trying to understand my options. Option A) Buy at the foreclosure options. My understanding is that banks will usually start the minimum bid somewhere around whatever is still owed on the property. Is that an accurate statement? Obviously they want to recapture the greatest amount they can. Which in this case the property is worth less than what I believe to be outstanding on the loan which would mean if the min bid was high enough it probably won't be sold at the auction. Will a title search show how much is outstanding on the loan? Also can I order a title search on my own or does it have to be through a title company? The property ARV is about $500k and the balance on the loan is probably somewhere around $525k. The property needs about $50k worth of work. Option B) Buy as an REO property after nobody buys at the auction and the foreclosure process is completed. The thing I don't like about this option is that it's likely I won't get as good of a deal. Who knows the bank may decide to become the flipper and do the renovation themselves. Are there any other options I am not considering? The Breach and Election to sell has been filed with the county so the foreclosure process has begun. Is there anything I can do to try and get the property prior to the auction (which here in Vegas is pretty competitive)? If I can't get it at the auction is there anything I can do to try and get it before it's offered on the MLS? This property is located in Las Vegas. Thanks for any thoughts! KC Morgan

Hi, I'm a newbie investor with one property that I'm cash flowing $600/month on. It literally fell into my lap a few years ago and I'm dying to do more. I found a distressed property that my wife and I would love to house hack and live in for a couple of years. I found it last year and after a lot of work tracked down the owner. She was extremely difficult and essentially said that if I wasn't willing to pay the mortgage off and

Hi Rafael, I know this is a fairly old post but I am trying to connect with someone who is well versed in the foreclosure auction process in Las Vegas. Did you have any luck connecting with anyone or perhaps you've learned the process on your own? Hope all is well.

KC

Hi Guys,

I am looking at a property that I hope to be able to house hack and live in for a couple of years. The owner wants me to spend a few thousand dollars to pay her attorney to negotiate a short sale with the bank that may or may not work out. The home has been vacant for about 5 years and the bank has still not foreclosed on the owner. I am considering signing a 5 year long term lease with her to rent the property for about $1,000/month which is less than comps, but the house is in dire disrepair. Presumably when the company currently securing the property sees someone living in it, they will inform the bank who will hopefully then foreclose on her (which she is 100% okay with and would like to happen so she can get the home off her books). Based on the Protecting Tenants at Foreclosure Act of 2009 which as I understand it is now permanent law (Congress - Protecting Tenants at Foreclosure Act), the bank would have to honor my long term 5 year lease. Essentially it allows me to have a leveraged position with the bank to either (a) purchase the property, or (b) get cash for keys. My question is simply whether or not anybody has any experience doing something like this? As far as I know, it's legal, but is it ethical to try and strong arm the bank like this? Any thoughts are appreciated.

Thanks,

KC

Anybody have any recent experience with this? I believe the law is now permanent...Congress - Protecting Tenants at Foreclosure Act

Funny you should ask Ryan...I'm actually going to be following up with her this week to try another approach. To my knowledge, the property is still sitting there vacant.

Thanks guys. Appreciate the responses and guidance very much. I'll respond nicely to her and give her the line in the sand that I'm not willing to bend on! Thanks!

lol!! :):):)

lol! That's kind of my thoughts as well Charlie! She says, "I don't want to spend any more money on this house"...so I'm left to ponder how I can help her see that spending more money to get this to happen is actually to her benefit!