All Forum Posts by: Walter Holmes

First things first...get more time so you can assess the situation correctly. 

Get on the phone with the lender ask to be transfer to the loss mitigation department and ask for a loss mitigation packet fill out the application and send 8t in, call lender back and confirm the application was received if posible request an email acknowledging your request for assistance was received.  

Now, go to the clerk of courts and file a motion to cancel sale you explain in the motion that you are attempting to do a short sale and the lender is aware and acknowledged your request for assistance attach the package and the Acknowledgement email as an exhibit and file the motion. Monitor the case daily and wait for the judge to rule on the motion by either denying,  granting or setting a hearing.(in this climate i doubt a denial will happen without a hearing) 

* I'm not an attorney,  this is just for informational purposes,  many factors should be considered I highly recommend you get legal counsel.

What county was this in?

This why I tell people, buying at auction is not as simple as pulling title. 

Doing due diligence is more complex than that, I look for redflags or conflicts between the "case" and what's on paper.

For example,  in this case the fact that the 1st position (the only listed mortgage in this foreclosure case) is 183k on a property that is believed to be worth $300k is a HUGE redflag

why?1.Because theres only a few explanations as to why the borrower didn't just sell the property, paidoff the 1st and put the surplus in his pocket. The main one being....yep! Additional mortgages. 

and yes! There can be exceptions but when i come across something like this you better believe title should be ran extra carefully and by another set of eyes to compare notes.

Most experienced people would've seen  something was not right just by seen the judgment amount and a bpo. The data does not support the investment strategy,  simple as that...this bothers me about this market, and i wish people would understand that been ethical not only is right but makes deals go smoother....a distressed property with equity should NEVER be sold at auction instead an investor should attempt to buy the property through the borrower it is safer and ethical. 

in this case im willing to bet that there's something you didn't mentioned that explains why at least 2 people missed the second mortgage..the foreclosing attorney,  and whoever up-bit the Lender to 300k.

Redflags all over this case!

Please know that we are NOT a listing site, title solution or a substitution to a manual due diligence done by a professional. 

some context..

This platform was designed specifically to minimize the time I spent gathering and organizing  the relevant data for all the potential investment properties scheduled for auction and be able to quickly identify high risk, or "fatal" title issues that disqualified a property from investing.

This brought change to an already complex process. Nevertheless it works! 

Im looking for beta user who are interested in testing it out. 

Anyone who is interested just let me know and I will get you access. I will be available for any user to answer any questions and schedule zoom calls where I explain how to use the tool, answer any questions and provide assistance with anything they need.

At the same time if anyone finds a property the like I will provide them with support through the process by running manual due diligence, property drive by and pictures,  unrecorded Lien search, bidding strategy and anything needed to increase success.

usually second mortgages foreclosure if they believe there's enough equity in the property to pay the first (they hold collateral) the second position gets whatever is left over. Some 2nd position loans might also hold a  have a subordination which will allow them to collect and THEN the surplus goes to the first.

HOA liens are different than "regular " jr liens since their Governing documents actually allows the bid winner to get a certificate of title and move right in (until 1st position forecloses).

Tax as well as HOA liens survive the fcl . Tax certs fcl will intact wiped off the 1st position , hoa liens must be paid in full by whoever buys the fcl in order to obtain clean title (safe harbor allows lenders to pay only a % of whatever is owed).

Verifying you are buying a 1st position loan might be the most important thing before buying at auction.

There's more to it, so make sure you get help with title related issues before pulling the trigger....

ohhh yeak inorder for a lien to be wiped from the title , the lean holder should be named in the fcl auction.

Thats a little rough!.... VERY true but a little rough nonetheless. 

Look I agree with their sentiment,  the reality is that there are many scumbags out there taking advantage of people who are already in a bad situation.

This market is full of intricacies and variables. there is in fact money to be made by investors and others  as well as many strategies to close a deal BUT believe it or not 99% of the time only 1-2 of those strategies will close a deal ethically. 

The difference between a scumbags and experts? Scumbags find a strategy and try to fit deals into it, like a baby with a lego it tries and tries until they force it in or get tired of trying.

Experts see a deal and its corresponding strategy.

 if you don't understand the analogy stay away from distressed properties. 

If you have your sights set on this market...at least start  by learning lending and loss mitigation, become an expert in borrower options to avoid foreclosure and qualifications  for modifications,  forbearance,  payment plans , short-sales etc. 

Once you have that down you will have a foundation to move into this space...get an experienced mentor and start doing the leg work of prospecting deals based on the borrower options you now are an expert on.

I don't know the reasoning behind your decision to enter this particular market but word to the wise .if you need to ask where or how to begin? this is not the market for you ... the majority of successful or knowledgeable people in this market "graduated" into it almost in an "evolutionary" way they just got here ... its just too high stakes for many involved and it takes years of experience to one day decide to learn it. There are many other easier ways to make money.

There's no such a thing as "the bank doesn't know they own it".  Lenders structures are very compartmentalized, the departments that you and all other consumers have access to are completely oblivious to operations and more internal structures but i can assure you they know they own it, of course when i say "they know" i mean its within their "book, system  reports" 

Depending on who the lender is you might have a chance to contact the right person or department to buy the reo but the bigger the lender the less chance of that happening.  

I have everything i need to provide it as a saas (software as a service) bp will be the first place i come to market it if i do!

I've been working on applying automation to real estate processes,  specifically buying properties at county auctions. I started this project hoping i could efficiently review the most amount of properties in order to maximize the potential investment options to bid at auction....this is what I have so far.

First thing i did was to create the listings, I matched the properties been auctioned with their corresponding pics and the property specs (rooms, size, floors etc.).

Second, for each property I automated the data collection process from public records and created a report with: Foreclosure info, owner info, taxes data, liens including mortgages , satisfaction of mortgages,  assigments, violations and permits and court dockets.This data is updated daily to capture new filings (specially the dockets to capture bk and motions to cancel sales)

Now that i have the data i can apply my personal "preferences" to go through the report and in a few minutes discard  properties that have certain attributes I "dislike". 

I.e judgment amount is considerably higher than the estimated value on a homestead property where the borrower is represented by an attorney, this sale will most likely be canceled. 

A second position mortgage or hoa lien, i toss since it doesn't fit my 1st position rule. My goal when doing my first review is to catch mayor deficiencie to discard properties as fast as possible and spend as much as posible on my "good" candidates. 

Let me know if you agree or disagree with my method any feed back is appreciated.

here the sample report:

Tax and HOA liens survive florida foreclosures.