All Forum Posts by: Michael Knaus

Thank you all for responding. It is a "claim against the estate" . Upon reading the docket, the estate was served notice but the creditor was NOT. It looks like credit card debt from Sears.

I realize every state is different so maybe this is a PA law issue or more about filing order but anyway, I will clarify.

The foreclosing lender has the first lien position. They filed for foreclosure when the owner died and obviously stopped paying the mortgage. There was a separate unrelated judgment filed against the estate BEFORE the lender filed the foreclosure. I'm not sure if date of filing has anything to do with this or not. My take is that the lien is JUNIOR to the mortgage since lien position is based on date of recording not judgment filing. As long as the lien holder was served, I believe it gets divested. Just looking for input.

What confused me was, I was told by another source that since the unrelated judgment was actually filed before the foreclosure, it survives the sale.  I am the successful third party bidder. The judgment is not big enough to hurt so I bid anyway. I just would like to know for future sales. Thoughts?

If there is an open judgment against an estate that lost the property through Sheriff Sale, does that need to be paid by the winning bidder in order to obtain clear title? The judgment was filed before the foreclosure. I was told as long as service was made to the maker it would be divested. Just concerned because of filing order. Any input would be appreciated!

Clean first with TSP or TSP substitute. Seal walls, ceilings, doors and trim with Kilz or similar primer. I have even used the water based primer. Don't buy the cheap stuff. It does work as good as oil based in my opinion and it's easier to clean up. You are not trying to "paint" the walls with this stuff. Don't expect a bright white finish. You only need one good coat. Just seal and give a good base for your top coats to stick to.

If there is carpet, I remove it, and do the sub floor too before new flooring goes back in. 

I still get a little nervous each time. I think that's healthy. KInd of like the mountain climber that still feels it. The second you have zero healthy fear or nervousness is when bad things can happen. Just keep it in check. I read the 5 Second Rule by Mel Robbins. She says to turn that fear into excitement. It works. 

You say you have read, have done the research and been running the numbers. Well if your thorough analysis says it's a deal you may have to just trust your gut and take the leap. I feel a lot of this business is about gut feel at some point. Data is great but you can get analysis paralysis. 

May I suggest, making the next few deals what I call "no calculator" deals. One of my mentors told me about this technique. Now it takes a lot of time to sort through all the mediocre deals until you stubble across a gem. It's so good, you don't even need to crunch numbers. You don't need a calculator. In 5 seconds you know it's a deal. These build confidence and allow for some error too. Knowing this puts your mind at ease when it's time to follow through. Because you bought right, it opens a whole bunch of new exit strategies which takes some pressure off of the deal. Good luck! Although luck has nothing to do with it.....

Just got my wire instructions yesterday from WF for my upcoming purchase. Will definitely be verifying that! Thanks for the post. I have heard and read about wire fraud and I know it's out there. I needed this post to remind me that it can happen to anyone. Time to pay attention to every detail and take this seriously is the point I'm getting here. Thank you!

So they left a bunch of nice things behind! I usually only get the junk. As I understand it, I have to place it in storage and notify the owner, giving them some time to recover the items. I have never had to do this. Anyone know the proper procedure? Post the property with a notice? Send them a letter? How long do I have to store? Any input would be appreciated!

Thanks for the insight!

Here's the point I'm after anyway. I plan to make several low ball offers to REO's with the hopes of landing 1 or 2. I do use private money but the funds aren't deposited until I need them (at closing). I also don't want to bother each private investor for letters considering this is a shot in the dark approach (numbers game). I use several investors and never know exactly who, what or where until I get it under contract. I plan to use my 401K purely as proof of funds to throw these offers around. I have no intention of actually using it unless for some reason I couldn't get the investor. BTW it is not self directed.

When buying from the bank, some banks ask for proof of funds. I'm wondering if a statement from a 401K showing enough funds would suffice. Anyone ever try it?