All Forum Posts by: Peter Pierzchala

 Thanks Tom!

The property record shows the current owner as the bank, so it is REO. The sale price recorded with that change of ownership is the total of all the liens probably?

Is there a way to understand which liens I would assume responsibility for if I buy a bank owned property at auction?

The Preliminary Title Report states under requirements of Schedule B-I:

10. The matters set forth in the following exceptions must be paid and released of record at or prior to Date of Policy: (I removed peoples names)

11. Open-end Mortgage in favor of MERS, INC., AS NOMINEE FOR BCI FINANCIAL CORPORATION from XXXXXXX in the original principal amount of $ 138,400.00, dated 05/13/2004 and recorded
05/13/2004 in Volume 338 at Page 179 of the Winchester Land Records.

Mortgage was further assigned from MERS, INC., AS NOMINEE FOR BCI FINANCIAL CORPORATION to
FEDERAL NATIONAL MORTGAGE ASSOCIATION, dated 04/11/2018 and recorded 04/25/2018 in Volume 438 at
Page 933 of the Winchester Land Records.

Mortgage was further assigned from FEDERAL NATIONAL MORTGAGE ASSOCIATION to NATIONSTAR
MORTGAGE LLC D/B/A MR. COOPER, dated 07/19/2019 and recorded 07/29/2019 in Volume 447 at Page 372 of
the Winchester Land Records.

Mortgage was further assigned from NATIONSTAR MORTGAGE LLC D/B/A MR. COOPER to US BANK
TRUST NATIONAL ASSOCIATION, NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY AS OWNER TRUSTEE
FOR VRMTG ASSET TRUST, dated 10/29/2021 and recorded 11/22/2021 in Volume 466 at Page 109 of the
Winchester Land Records.

12. Open-end Mortgage in favor of BANK OF AMERICA, NA from XXXXXX in the
original principal amount of $ 82,000.00, dated 03/23/2007 and recorded 04/10/2007 in Volume 374 at Page 71 of the
Winchester Land Records.

Mortgage was further assigned from BANK OF AMERICA, N.A. to ABS LOAN TRUST V, dated 12/19/2018
and recorded 12/26/2018 in Volume 443 at Page 315 of the Winchester Land Records.

13. Judgment Lien in favor of SUPERIOR PLUS ENERGY SERVICES INC. D/B/A SCASCO ENERGY from XXXXX in the original principal amount of $ 2,447.43, dated 11/11/2015 and recorded
11/16/2015 in Volume 425 at Page 1082 of the Winchester Land Records.

14. Lis Pendens in favor of NATIONSTAR MORTGAGE LLC D/B/A MR. COOPER from XXXXXX, ET AL,
dated 08/15/2019 and recorded 08/20/2019 in Volume 447 at Page 956 of the Winchester Land Records.

15. Judgment Lien in favor of CAVALRY SPV I, LLC from XXXXXXXX in the original principal amount of $ 4,037.51,
dated 11/02/2020 and recorded 11/05/2020 in Volume 455 at Page 1165 of the Winchester Land Records


Does Line 14 indicate the Mortgage from Line 11 is the one being foreclosed and that would be the First Position Lien?

What happens to the second mortgage on line 12?

Am I correct to assume that the lien on line 15 carries over to whoever buys the property since it is dated after the Lis Pendens on line 14? But line 13 does not?

I'd appreciate any clarity you seasoned experts can bring.

I'm looking into a house to live in flip that comes with an additional second lot that is buildable. Both properties are listed on the same deed as parcel one and parcel two. To sell off the second lot, from what i understand, I'll need to pay off the mortgage used to buy both at the time of sale to make a clean title. Is there any issue with that strategy, like being in the middle of a flip and not knowing when the sale might happen? Is there a better way to separate out the two properties for a cleaner sale of the lot without messing with the mortgage?

Thanks for any help!

There are older(1940's) ranches in my area that have steeper pitch roofs than typical and even some have existing stairs to a walk up attic. They are small 800sqft 2bd/1ba and I would think the potential to add a dormer with 2 new beds and a bath would be a no brainer. I'm having trouble getting a quote or even opinion of the feasibility to do so since I don't actually own one yet. Are there any general rules of thumb in determining if this is possible while you are only "shopping" for them? What is a reasonable budget to plan for if I would just want a contractor to frame out the dormer and make it weathertight while i took on the labor to finish the rest? I'm located in Connecticut. 

Thanks for any insight!

Hey there BP friends!

I own a SFH in Simsbury, CT which locally is a very desirable town to live in with great schools. Its a 4 br 2 ½ ba colonial on a quiet street with a great yard. I've been hoping to get into RE investing and as it happens, I am likely going to be moving soon. I would like to keep this house as a rental but im not sure if it makes the most sense, so I'm reaching out for advice.

In talking to some realtors and property managers in the area, Rent could be 2800 – 3000 monthly

My PITI is 2000/mo and with 5% set aside each for vacancy, maintenance and Cap Ex come to 420 – 450 monthly

Property management, best and most expensive at 10% would be 280 – 300 monthly

Cash flow at 2800 rent is 100 monthly, and at 3000 rent it’s 250 monthly.

I could self manage for better cash flow (380 to 550), I’d be an hour away once I moved and I do have contacts in town. Is that a better option?

I bought the house at 370k five years ago, owe around 280k. So with 90k "invested" the ROI and Cap rate are low. But, I finally get my foot in the door and have the chance to Heloc on it for other opportunities (thanks appreciation!). Talking to my mortgage broker, the rent on this would be counted as income, credited at 75% and cancel out the existing mortgage, allowing me to finance a new place. I have plenty of reserves to make it work as well.

What would you do and what am I not thinking of?

I'm seeing on some auction sites that a lot of the houses up for auction, either foreclosure or REO, the majority are listed as occupied. Do you just have to plan on evicting? What if there are tenants in place with a lease. Do you have to take over the property and wait for them to not pay you before you can start the process or are you able to start immediately?

David Greene sort of addressed this in his podcast #595. Seems like the advice is that an LLC isn't as critical when you're starting out and you probably wouldn't be able to get financing as an LLC. I still like the idea because I don't want to put my personal residence and other assets at risk. If you only hold a property or two can you just protect them with a better insurance policy? I'm still in disbelief that the average person can buy a property as an LLC with a conventional mortgage. My broker said no and there is the risk of the mortgage company calling the loan if you transfer the deed to your LLC down the road.

Thanks for the input, i'm having trouble finding something in a nicer area that makes sense numbers-wise. I'm trying not to buy because of impatience and get stuck with a turd. What is the best way to confirm current market rents in an area where most homes are owned?

How important are the immediate surroundings when choosing a property for Rental potential? Im currently looking for my first to BRRRR, in CT. While looking through those on the mls, I sometimes come across one that looks promising but as I look at the area, I see why its maybe priced a little better than others. For example, there was one in Windsor Locks listed at 100k (with water and freeze damage), but it was also sandwiched between a church and a town parking lot - I wouldn't want to live there but that's my personal preference. Another was right across from a rundown warehouse. How do situations like that affect the potential rent? Is targeting properties like that helping you avoid competition from other buyers looking for a primary home?

For those of you that self manage and have your tenants setup and cover their own utilities on a SFH, do you put the electric/gas in your name during a vacancy period? What is the preferred method, especially in colder climates?