All Forum Posts by: Peter Hanna

Thanks @Account Closed. Very helpful. One more question: is it alright to bring those numbers here for double-checking with peers, or is this a "No No" for this forum/website?

Hi BP members. I asked this same question in general Q&A forum, but couldn't figure out how to delete it and move it here.

I've stumbled across a property in a status that I am unfamiliar with so far in my education. My neighbor has a house about to go to auction in a "Trustee Foreclosure". I found out about this Saturday, April 15, 2017 around 5:00p.m., so I have been scrambling to learn/prepare. What I've seen on BP is how to bid at one of these auctions. But, as a neighbor, I might be in a position to step in before hand and help the homeowner. I don't know much about these kinds of deals, and if I take this it will be my very first deal. What I have learned has been that it's possible to stop a foreclosure by: 1 - getting a contract where the HO retains responsibility for the loan, but signs a contract with (Me, hopefully) where I have rights to the deed, or the deed itself; 2 - I know I then catch the note up to current and maintain until rehab/sell; 3 - (in this case I will) Offer Cash for Keys to help the owner vacate the property and move on with life.

The details (what I know so far):

• Home has two mortgages, one for 80%, one for 20%, on original value of $100k
• I'm getting an agent to give me current comps tomorrow, but what I've seen in my neighborhood is homes going for $120k to $136k.
• Auction is May 2, and they have to do something by the 29th (maybe the 28th)
• Taxes are current
• Note unpaid for almost a year
• Owner's current life circumstances make her a reluctant but motivated seller (she can't afford to go anywhere, but they are going to have to move no matter what)
• (I think) the lender is called "Aukland" which, if true, has some bad press in Google, and looks like a brokerage out of New Zealand.

What I don't know:

• What is the difference between this kind of foreclosure and a "regular" bank or a Sheriff's/Tax foreclosure?
• Is it possible to negotiate price in this situation, or am I stuck? Can I offer less than the note and have a chance?
• Will the owner know of all the leans against their property, or do I need to do a title check anyway?
• Is there time for me to do this?
• What kind of contract do I put this under? Is there boilerplate, or should I get a lawyer to draft one up? (I'm not sure how long this could take, and it seems there is a need to hurry here).
• Will I need separate contracts with both owner and lender?
• Will eviction still be required, as due diligence, or will just leaving be enough?
• Is one of the calculators going to work for assessing the deal? Or are there more "gotchas" than are calculated for in the tools here? If no calculator, how do I construct a MAO number for this sort of deal?
• What else do I need to know that I don't know about?
• Are there blogs that I can ingest to catch up quickly about this kind of thing?

Thanks for helping, especially today.

Peter Hanna

Hi BP members. I've stumbled across a property in a status that I am unfamiliar with. My neighbor has a house about to go to auction in a "Trustee Foreclosure". I found out about this Saturday, April 15, 2017 around 5:00p.m., so I have been scrambling to learn/prepare. What I've seen on BP is how to bid at one of these auctions. But, as a neighbor, I might be in a position to step in before hand and help the homeowner. I don't know much about these kinds of deals, and if I take this it will be my very first deal. What I have learned has been that it's possible to stop a foreclosure by: 1 - getting a contract where the HO retains responsibility for the loan, but signs a contract with (Me, hopefully) where I have rights to the deed, or the deed itself; 2 - I know I then catch the note up to current and maintain until rehab/sell; 3 - (in this case I will) Offer Cash for Keys to help the owner vacate the property and move on with life.

The details (what I know so far):

• Home has two mortgages, one for 80%, one for 20%, on original value of $100k
• I'm getting an agent to give me current comps tomorrow, but what I've seen in my neighborhood is homes going for $120k to $136k.
• Auction is May 2, and they have to do something by the 29th (maybe the 28th)
• Taxes are current
• Note unpaid for almost a year
• Owner's current life circumstances make her a reluctant but motivated seller (she can't afford to go anywhere, but they are going to have to move no matter what)
• (I think) the lender is called "Aukland" which, if true, has some bad press in Google, and looks like a brokerage out of New Zealand. 

What I don't know:

• What is the difference between this kind of foreclosure and a "regular" bank or a Sheriff's/Tax foreclosure?
• Is it possible to negotiate price in this situation, or am I stuck? Can I offer less than the note and have a chance?
• Will the owner know of all the leans against their property, or do I need to do a title check anyway?
• Is there time for me to do this?
• What kind of contract do I put this under? Is there boilerplate, or should I get a lawyer to draft one up? (I'm not sure how long this could take, and it seems there is a need to hurry here).
• Will I need separate contracts with both owner and lender?
• Will eviction still be required, as due diligence, or will just leaving be enough?
• Is one of the calculators going to work for assessing the deal? Or are there more "gotchas" than are calculated for in the tools here? If no calculator, how do I construct a MAO number for this sort of deal?
• What else do I need to know that I don't know about?
• Are there blogs that I can ingest to catch up quickly about this kind of thing?

Thanks for helping, especially today.

Peter Hanna

I'm impressed but that might not mean much, cause BRRRR just makes me dizzy. I so want to get this, but the refinance stuff just boggles my mind. Aren't you paying two loans? Can you really catch up AND positively cashflow with two loans? I guess keeping it all straight with one property I could do, but then it repeats... next 4 loans? Then 6 or 8 (if double down) on and on. Don't the lenders get frightened??? I am and I am just learning about it. I think I don't fully get this one. I have something off, I know it, but I don't know what it is? Sounds amazing and a bit like actually riding a real dragon or some other fantasmal creature in real life, not just my dreams. You guys are my heros. What did I miss???

What article do I need to read about why having $0 in a property is a good idea (by way of a HELOC)? I'm a super noob, so I am really asking, not being snarky. I'm searching, lots of hits, and I think I have bad info in my head (from the posts here that it is VERY bad info) but didn't the crash happen because of ppl being in exactly that position? "Help a fella out" with suggestions and "reads" would be splendid.

BTW - Wow, what a find! Automatic appreciation of 100k at purchase. I started learning investing with that as my fantasy "new life," and was quickly disillusioned by what I read, but this is (almost) fanning that flame back to life. Congrats on the find!

@Adam Abdel-Hafez, I see a chance to learn here, so... I've got a lot of experience with PM in corporate life, from location, build/construction oversight all the way down to electrical and technology deployment, etc., etc. Is real estate PM substantially different? Perhaps that can't easily be answered, if no one is familiar with the side I have worked AND residential real estate projects to be able to compare and contrast. I've been looking for this information all day, actually, as I'm considering using my experience in REI. But I can't really get a feel for the differences, as such I cannot figure out where my "gaps" are to get busy researching.

Hi. I'm a new investor, still learning. I live in Texas, and have come to understand one county's version of this, but in reading all your responses, I see that I have MUCH to learn in general. I have an interest in looking around in Oregon for tax sales, but it is obvious to me that I am woefully uneducated about these distinctions you guys have made. If I may, I'd like to see if I can summarize in newbie language and get correction. If this is a waste of time, maybe someone can point me in the direction of where to go to get a better understanding of this so I can learn and make informed decisions about whether it even makes sense to pursue this line of thinking in OR.

If I am reading your comments correctly:

• Home owner Alfred defaults on his taxes (in Texas this is the only kind of sale a sheriff or constable can hold, but looks like there is more than one kind of sale in OR?) at residence 123 someplace, portland OR,
• 123 someplace goes to sale after court decision so that sheriff can recoup taxes lost, and buyer Bill purchases the property,
• Alfred has 180 days to buy it back from Bill for bid amount, and court fees, but no longer has to pay back his original loan for 123 someplace, portland OR,
• Meanwhile, contractor Clair has a second lien (not sure how she got it but she did) and she has 60 days to get her money back or gets the property, but Alfred can step in at the 90 day mark and still reclaim the property. Now, though, Al has to pay Bill for his original bid, court fees, AND has to pay Clair?
• What if: Al does not reclaim and repay? Does Clair now get the property or Bill? If Bill, does Bill now have to pay Clair?
• What if: Al doesn't reclaim, AND Clair doesn't reclaim? Bill gets the property outright on day 181? In Texas, the original owner can come back up to a year after the sale and get the property back, but has to pay bid amount, fees, interest, and any costs to make the property livable (fixed the roof leak, installed the heating/AC that was vandalized, etc.) but it looks like OR is saying get it in 180 days or else. Also in TX, the deed becomes insurable AFTER the time expires. Is that not so in OR? Once bad always bad?

OR, do I just need to go look this up someplace I have yet to figure out online so far?

P.S. - I forgot to mention that in TX, the bidder/winner is responsible for any new liens and taxes that accrued after the decision date, which in many cases seems to be at least a year or more of additional taxes, and who knows what new liens. Still working to figure out how to find that out, but that is another discussion.

Peter Hanna