All Forum Posts by: Maurice George

I think I would take a different take on it.  I was looking at a church tax lien in AL.  Imagine if a church did go through a tax sale and you bought the lien/deed.   That would wipe out the mortgage.   If the church is still meeting there, you could offer them a better rate/monthly payment than their mortgage company.   That would be a win win.   If it didn't work out, you could still offer value to a new congregation or not for profit.  

Food for thought
Joe

Hey @Mike H.  great points , as always .

Seller doesnt seem to be in the mode of " I got to avoid this foreclosure and get off this property " . She is still in " I want to pay off the Mortgage and make money "  :-)

House doesnt seem to need anything - pretty good condition , new roof , recent systems .

I will offer 210k and see ...

@John Lai If the bank has already filed the necessary legal foreclosure paperwork on the homeowner(s), then finding the amount of equity the homeowner has in the home is as simple as pulling up the case file (via your local country court records website) and reading the original "PETITION" filed by the bank.  In the petition will be a detailed record from the bank to the court explaining who the homeowner is, when he/she became delinquent on their mortgage payments, and how much money they are in-debted to the bank currently.

I find the owner of a pre-foreclosed or foreclosed home via the County Assessor's website.  I then find the case record via the County Court Network website.  I then find the title/deed records via the Court Clerk's website.

Hope all of this helped.

Letters = 2-5% response rate

Door knock = 100% response rate (providing they're home). May not be the response you're looking for but at least you know right away.

are you sure it's not the judgement amount but the starting sheriff sale listing price? sometimes the bank will start a price at a lowball offer in order to attract interest. I saw one at $100.

also, be aware that the bank will sometimes attend these lowball offers and bid on it until they get their price. doesn't happen often but it does happen.

@James...sorry.

So, doing "subject to" is illegal per the terms of the note. As you are a developer and lender, I'm rehashing what you already know. It's not illegal in a "legal" sense, it's illegal in the sense that it triggers the "Due on Sale" clause of 99.9999% of all notes written nationwide for the last ions of years. It is a violation of the covenants of the note. Cancelling insurance could trigger the due on sale. Selling Meth, converting it to a bed and breakfast, failing to pay taxes, having a fire and not using insurance proceeds to fix it back to the way it was, and a whole bunch of other rules specified in the note, that if violated, can trigger the due on sale clause. Selling a property subject to is not allowed. How is the lender going to find out? Well, if you are smart (and I think you are) you are going to put insurance in your name as the new owner to protect yourself. How are you going to list me as the loss payee? You aren't on the loan so you sure aren't going to call me for information and even if you did, I'm sure not going to give you any information as you aren't on the loan. That's the first way and usual way we find out you transferred property to someone else, subject to, and we send a nasty little letter to the borrower that we are going to foreclose if he/she doesn't transfer it back into their name immediately. You can get a borrower's authorization for you to call and speak to us about the loan and the minute you call us (Lenders in general) and tell us you need the loss payee clause, and we ask why, and you tell us because you are changing insurance, we accelerate the note. Or maybe you are hip to that and you just cut and paste the information from the previous owner's policy if by chance they give you a copy of the policy that they for sure are going to cancel (That's another way we find out) and then use the same language for your new policy. Well, that cancelled policy gets a notification to us from the old policy and we send a letter. Or maybe you and the borrower know that danger so you leave the insurance in place as is and think everything is fine but when you go to pay the taxes so you can take the deduction, we get notified at that time and send a letter.

My point is, if you are buying subject to, be prepared to have a quick exit strategy. The chances of a lender calling the note due are greater and greater. It's an risk in my experience doing subject to.

If you believe your Realtor does not deserve the full commission then you are working with the wrong realtor.

@Will Barnard. So True. While Wholesaling can be the fastest way to earn an income in REI, there are Wholesalers who give it a bad name. In the last few days I was back-and-forth on a deal, where we even increased our offer to get the property. When it was revealed to us the Wholesaler was asking for a $32k AF on a $212k pp, I was disgusted. 15% AF Fee? That's crazy.

I bought the lot flipper program for $1000 about 4 months ago and still have not had a deal accepted.  If anyone has had a deal accepted by the program please let me know.

@Lisa Fondant, it looks like this program has inspired several threads right here on BP. Jerry Norton started out right in my backyard. He used to be a regular presenter at one of the local REIAs. I have spoken with him several times. There is no doubt that Jerry has made a lot of money. I would not invest with him nor buy his program.