All Forum Posts by: Ray Trounday

@Peter Halliday  When I originally mentioned market value, I was referring to market value of the home but it could equally be applicable to unpaid balance.

I generally use a 35-50% of market value as my rule of thumb for NPN. With that said, having a Lis Pendens filed may cause me to relax the range a bit but generally would frown on greater than 50% of market value.

Pavel, 

I would focus my attention on states that have non-judicial foreclosures.  Georgia a good one. 

Here is a link from Nolo with the list

https://www.nolo.com/legal-encyclopedia/chart-judicial-v-nonjudicial-foreclosures.html

No not at all.. Having a BPO from a licensed broker who is active in the market that you are looking to invest in is important element of any due diligence checklist. I would also encourage that the BPO include an As-Is quick sale price as well as an ARV (After Repair Value) retail price. Realtors who are active in the marketplace have a good sense on what it will take to move properties.

Best,

Ray

Should you decide to pursue the non-performing note it is my understanding that you cannot contact the borrower directly since he is in bankruptcy.   You would need to contact the bankruptcy trustee to understand the borrower's intentions for the home.  I am working on the assumption that the note is in 1st lien position.  If it is not, you need to be wary of lien strip if it is not the borrower's primary residence.  If you are serious about pursuing the note, I would highly recommend consulting an attorney who understands bankruptcy law.

Thanks! @Chris K.

I also sent you a PM.

Thanks again!

Thanks! @Dave Van Horn

I am looking for a foreclosure attorney in Pennsylvania.  I have a non-performing note in Uniontown, Pennsylvania and I am looking to move forward with a foreclosure.

Thanks in advance,

Ray

Bryan,

I would say that notes are similar to purchasing real estate out of state without the property management overhead. As you know you are assuming the position of the lender when purchasing notes.  There are number of ways that a note investor could get involved (performing, non-performing).  If you are interested in cash flow, you may be interested in purchasing a partial (part of the payment stream from the note).  There are not drawbacks per say.  There is certainly due diligence that needs to be done but it is not any worse out of state.  You still need to evaluate property value, borrower etc.

IMHO, I would say you should.  You don't want a borrower to challenge a note and hire a lawyer to find out that you did not use RMLO and find that your loan did not meet a litmus test and have a judge award the borrower.  Google searches are a good source.  I think there are areas in BiggerPockets on vendors who are RMLO vendors