Originally posted by @Alex Harris:
Hi BP,
I'm a relatively new wholesaler (started about 1 1/2 ago) and get leads from other parts of the country sometimes. One came in the other day from Birmingham, AL and I have an idea how to handle it but want some recommendations. The situation is that he did owner financing on a commercial property with a buyer who stopped making payments in Dec 2013 but stated the buyer has the deed. He is moving forward with foreclosing on buyer but is unfamiliar with the process and is in Arizona.
First thing the owner of the note should do is hire a local attorney or consultant familiar with the law in that area. If he has not done this then there is little chance that he has started the foreclosure process unless it is being serviced by a loan servicing company.
The next thing to do is get an assignment of rents so the owner can not pocket the rent and walk away.
Since you are dealing with a note holder, you can offer to buy the note at a steep discount and proceed with the foreclosure. I have worked as a consultant on some deals like this. This type of deal can be an alligator.
