All Forum Posts by: Roman M.

That will be an adventure with someone you don't know but will learn more about as you are deeper into this adventure. I am not sure how sweet is the deal but I would not do it. 

If you think he could be a good partner then get to know him and maybe it could become a partnership so long that everyone has fair amount of money and work into this venture.

You need to calculate internal rate of return based on what you want to pay for the note. Even with 0 % interest rate you can make money.

Most of the note buyers want to see principal.back within 10 years. When you have a 20 yr mortgage it affects the value. Other things to consider is credit score of the borrower and loan to value. In your example above you could get close to face value of the mortgage but expect a hair cut due to 20 yr term. 

If I had to guess then you should be able to get $85,000 for the note.

Forget about pledging the note or borrowing against it. It will be very difficult to find a bank to do it and a private investor will charge you probably north of 10% if they are comfortable with lending against a note.

the clerk usually orders title and determines who needs to be notified of the tax deed sale. If all interested parties are notified then all interested are foreclosed. They usually don't set sale until they get proof of service.  It is safe to say that the current owner or owners estate will get proper notice and a lot of times they don't act on it and if that happens then their interest will be wiped out.

I suggest that you have a title co review the tax deed file and all notices just to be on a safe side. You can get a copy of the tax deed file from the clerk and sometimes even online (depending on the county).

You have to wait 2 years to apply for a deed.  2018 certificate was probably purchased in June 2019 so if you acquire this certificate you will be able to apply for a tax deed on April 1, 2021. you will have to redeem other taxes. Like 2019 and 2020.  So add two more years of taxes to your investment. Once you apply for a tax deed your interest will be 18% annual on all the money you layout until the tax sale.

It is cheaper to foreclose by tax deed then filing an HOA foreclosure . Tax deed fees are minimal and you will be under $1,000 in fees.

Once all parties are notified (including all current lien holders), the sale will be scheduled and it is the highest bidder that will get the title to the property. So for you to get it you will need to bid everyone out. The good thing is that mortgage and HOA fees will be wiped out but you will still have to deal with your family squatters and go through lawful eviction.

Now you have 3 options for the title to become marketable:

1. Wait 4 years for the title to become marketable.  You can just seat and wait, rent out the property, use, do anything but sell it since title isn't marketable yet.

2. You can file a quiet title action which normally runs around $2,500 with filing fees.  With this action all lien holders will be notified again that you acquired this property by tax deed and they will need to respond within X number of days.  After you get final judgement you title is marketable. All process should not take more then 5 months.

Options 3. File for title certification (clear to sell is one of them) usually cost about the same as quiet title. It's a 60 to 90 day process.

So there you go entire process on one page.  

With conventional there is 6 month wait. With hard money there should be no wait.

questions on where money came from is BS in my opinion.  If they ask you that then look for another lender.

I have had the same problem but I had some that were super smooth too. Caliber Home loans for a rental refi was suprisingly good and smooth. 

I think that robot underwriting will be difficult. I was able before to argue my point with underwriter and get my application approved despite that they wanted to deny it.  

Yes you can. 

Asset deplition loan programs are usually designed for this.

They can be co-lenders both in first position. Each one will own fraction of the loan. Better have attonrey set this up.