All Forum Posts by: Robert Shoffner

If a first mortgage forecloses on a house and it is bought at auction, it wipes out all the liens behind it (unless the auction price is high and then they would get paid in full or partially).

Property taxes and HOA liens would still be in front of the foreclosed mortgage, and so would still be attached to the property.

Aside from these, what liens would an investor need to be concerned about  (IRS liens, personal judgments, other types of liens) when bidding on foreclosures?

Conventional wisdom is to do a title search before bidding.  

Sorry if this is a double post, I don't think the one on my phone posted though.....

So normally when buying a pre-foreclosure (or any house), one gets a payoff (which includes pro-rated interest, any fees, etc.) from the lender and it is paid in full at closing.  

I have heard of investors getting the deed and paying off the 'principal balance' as opposed to the payoff.  What risks, if any, are there to the investor-buyer?  Why would one do this?   Would the bank still have a lien worth $0?  Would they or would they not cancel the deed of trust/mortgage?

Any feedback is appreciated.

I know a payoff includes all fees, interest, etc when you buy a pre-foreclosure )or any other house). I have heard of investors paying off the principal balance only and getting the deed. What risks are there, if any, the investor that buys it? Any tips or suggestions on this? Thanks

Michael Quarles thanks so much. Hopefully I won't get a refund:) Does anyone know of a company to use to distribute door hangers? My flyer guy does not deliver door hangers.

I am looking to launch a door hanger campaign in several target neighborhoods to pick up a few deals (hopefully). Has anyone ever run door hanger campaigns before and if so how did they go? I am looking at starting with maybe 5000 door hangers which will let me hit several neighborhoods.

I didn't really see any forum posts on this topic.

Suppose you have a private lender that wants to keep their money working and getting interest.  If you have a private mortgage/deed of trust with a transfer of collateral or collateral transfer clause, do you have to cancel the mortgage/deed of trust first, then sell and have the closing?  

I have had a private note with this feature and the last time (or two) I tried this, the closing attorney insisted on sending the money back to the private lender.  I can only guess that the deed of trust/mortgage must be cancelled prior to closing, so when the attorney is disbursing, they don't see the lien there anymore.

Anyone with lots of experience on this, what do you suggest?

Does anyone have any experience with these?  I'm sure you know of or have heard of them.  I didn't if anyone had a positive (or negative) experience with them.  I won't mention any names, but one guru is sending out emails regularly about private money gold mine, where it tells you about someone local who wants to lend at x% (sometimes 5 or 6%, or 10%) and how many dollars they want to lend.  Has anyone any used this?

I tried a different one for about 3-6 months because I had free access for a limited time.  I searched for local lenders mailed out to them a few times, and got almost 0% response or results.  Has anyone had a different experience or recommend anything helpful?

Has anyone used the REACT system (reverse engineered assignment of contract for terms).  Its getting sold by gurus now.  Didn't know if anyone knew what it referred to.  How does one do a REACT deal?

I've been invesing in SFH for about 7 years and would like to get into my first large MF property have about 12 properties with 14 doors total). I've also been wholesaling a few years and doing a SFH rehab here and there.

I've been listening to many of the BP podcasts and what did and din't work for others. I always enjoy listening to them on my flashdrive while driving around. Loaded with good tips and information. I can relate to a lot of it.

I have from $100k+ of my own funds (maybe more) but I want to get into 40-50 units so I can have an onsite property manager and maintenance person.

Any tips of what I can be doing now to prepare for a MF property over the next 6-12 months?

I know the area is obviously a huge big deal, like with SFH. Any tips would be greatly appreciated. I'm patient so if I have to take several steps now to be ready in 12 months I'll do it.

Its important to prepare one's mind first, and then the reality will follow (assuming one is willing to take action). So that's where I'm at now.

And assuming they do not exercise that option of redemption, then it gets wiped off the property?