All Forum Posts by: Martin Kruger

Would be happy to hear about anyone buying a 2nd mortgage at Sheriff Sale or advise.

Here is what I am looking at per the Owner and Encumbrances Report I pulled-

1. 1st mortgage from 5/1999 securing the original amount of $37,000.00

2. 2nd mortgage from 12/2002 for $195,000 Foreclosure sale at Sheriff Auction with balance of $20,000

3. 3rd mortgage from 11/2005 for $70,000

4. No liens or bankruptcies

5. 12 month redemption period.

Pulling comps the AVR would be $275,000 being ultra conservative.  

Looking to by the 2nd mortgage at Sheriff Sale.  What are the implication of the existing 1st mortgage?  What would the strategy here be?  

Would love to hear your advise or similar experience. 

@dave van horn do you have any advise?

Thanks everyone!  

Buy a fixer-upper rental property, repair it, lease it out to good tenants, refinance to get your money back and then repeat the process over again and again...

• Buy the property then...
• Rehab the property then....
• Rent the property then...
• Refinance the property then...
• Repeat - Do it again...

I would recommend to start analyzing deals.  At least 2 a day if not every home that comes on the market in your area and niche.  That way on 1/13 you will know what is and what is not a good deal. Then you can make #11 happen with confidence.  

I think much of the fear in the market is due to interest rates.  The rates are far too low.  Once they go up (they have too don't they) the correction could have an adverse affect on the economy.  What that effect is, is the unknown.  I know banks are chomping on the bit for rates to go up so they can start to make some money though.  

What did you learn?  What did you do?  Did you hit your home run?

I know this is dead post however I am surprised by the reply.  Part of the foreclosure law is the right of redemption.  99 times out of 100 the bank buys the property at auction.  If it sold for 120k at auction the prior owner has the right to to sell the property for whatever he can over that amount during the redemption.  He is not stealing from anyone.  Whoever bought it at auction gets their money back plus interest.  Mortgages are redeemed after foreclosure all the time.  The buyer could have bid more at auction if they wanted to.  I found that to be a very uninformed post.  I normally see better on this site.  I would give someone 7k if there was enough equity in the property.  There are a lot of bad things that happen to good people that prevent them from paying bills.  Who knows the mortgage broker could have forged documents to get the owner into the loan in the 1st place.  I/we are trying to solve problems and make win-win situations for everyone.    Just my advise.  I would hate for you to lose a good deal just because you did not understand foreclosure and redemption.   On the other hand if you don't understand it and don't educate yourself about it you should be in that game anyway.

Square sounds like it might be an option.  You could swipe her card right on your phone.  https://squareup.com/

Hi John, I am an underwriter with yrs of experience. You are scored on your total available vs your total balance. Therefore it should not matter where the balance is. Total debt 1900/ total available 6000 = 31.6% revolving debt utilization, right where you want to be.