All Forum Posts by: Walter Holmes

 Winning bidder not performing and BK comes with the territory  but missing to publish? 

not sure what the backstory for failing to publish is but unless the excuse is out of this world I can almost assure you there more to the long delay...

I've managed thousands of thousands of notes on a micro level, I mean due diligence of acquisitions to foreclosure, loss mitigation , auction sales and everything in between. 

I have not made millions as an investor, I just spent more time that I like to admit in "the trenches" (10+ years).
First of all the initial due diligence is extremely important needless to say to confirm the collateral is foreclosable but to identify the potential exit strategies for that loan and have a plan in place. Some notes are better suited to pursue a short sale or deed in lieu, some are destined to be sold at auction some are more profitable as a performing note but an exit strategy should be put in place from the beginning.

Unfortunately a good due diligence and strategy means nothing if you don't hire the right firm to handle your cases. 

Most avoidable delays in a foreclosure case come from the attorneys and/or the servicing company not doing what they are supposed to do or taking an unbelievable amount of time on simple processes time and time again.

Hi Jeremy, Florida county auctions  are all held online.

Here's a good post I started on how to do the due diligence with great additional tips from other posters.

https://www.biggerpockets.com/...

I thing intelligent automation is the most promising. I've been working/consulting on automating the due diligence process for sometime, its tricky because data integrity is everything and some counties are better than others handling and storing their data so we had to adjust and keep adjusting to ALL THE MANY different variables but i believe we were able to build a "foundation" to where at least the platform cuts the time it takes to do due diligence to about 30 min, some I was able to discard in under 5 min (Hoa foreclosure) .

I like the idea of starting with "small" processes, fully automating them (or making them as efficient as possible) then putting them together to address a niche market need i.e due diligence for properties sold at auction, prospecting short sales, lien search workflows,  etc. 

This HOA scenario is one of the most common mistakes I see people do every week.

There is a market and scenarios where buying an HOA lien is profitable but let me answer your question first.

"Liable" is not the correct term I would use since you did not sign the mortgage but you will not be able to sell the property until you have a clean title.

If anyone makes this horrible mistake, I recommend you MOVE FAST; with luck, not all is lost.

First, you need to know the following:

• Property value.
• · Debt on the property = All mortgages, other liens, violations, etc attached to the property.
• Is there any other open foreclosure case attached to the property?

Second, use the above to plan your exit strategy:

Sell the property: If the property Value is > debt on the property (enough to cover your investment and hopefully some ROI)

Rent the property: Debt is > property value (fight the foreclosure and Airbnb it to savage your investment)

Of course, there are more factors to take in consideration as each case has its own nuances this is just representative, I do not by any means promote the rental of properties under foreclosure and you would have to check with the HOA if it is even allowed.

Short answer: If you buy an HOA lien most likely the outstanding mortgage will foreclose on the property and you will lose title once the foreclosure process is complete.

I'm interested in getting an idea of how many people would be interested in a due diligence "how-to" workshop, q&A, exchange of ideas, etc. 

investors or anyone who just wants to get their feet wet.
Would this be something anyone would be interested in attending?

 Hi Bob, 

Regarding this particular case from Harris Bank if I'm not mistaken I read that the 1st position was current, wouldn't this affect the ability for the 1st position to claim surplus even if they are part of the foreclosure proceedings? Also, in the worse  case scenario for Pete where NOBODY in the atty's firm or Harris bank Noticed they were foreclosing on their selves and failed to file the appearance,  I'm I wrong or Pete (3rd party buyer) can file a claim of surplus to be paid to the first position (ofcourse before the deadline)

Now another question/guess regarding this trend and files not being merged, the 1 file i saw and the file on this post both involved properties where the equity is enough to cover both mortgages ....are you seen the same on your end?

Because, if that's the case and there's enough equity to cover liens and some left for the borrower, wouldn't it be illegal or at least questionable for a 3rd party buyer to be able to just payoff the 1st and walk away with the equity that truly belonged to the borrower? 

I'm glad Bob is here because my ADHD  kicked in high gear thinking about ALL the potential new case law this will create. 

I'm a "Florida guy" and I'm very rusty on Illinois maybe its just that!

Thank In advance.

Give me a sec, to go through the docket.

To add....a second position will only foreclose when the property has enough equity to cover both mortgages such as in this case, and again...SAME LENDER! 

Check the court docket, usually a first position can stop a junior lien (or just paying it off) in this case having equity and being the same lender they will allow it to proceed but by not contesting the case but requesting the consideration for surplus.

Most likely Surplus will go to the 1st position.

Ok, so there are some things everyone might be overlooking (or i might be missing something here)

Notice how the the lender is the same Harris Bank....I would bet $1 that the reason for the subordination is because the 200k loan recorded in 2009 is either a refinance or some type of heloc. 

Banks do this so the mortgage with the highest amount not only gets priority butt conserve "value" in case the loan is sold. Now, i will bet $2 more dollars that Harris bank covered their but with the surplus by filing a special consideration in receiving a portion of any proceedings from a foreclosure auction by the second.

Now, there are some states where if the second mortgage forecloses the first will still be able to collect surplus depending on the time the lis pend was filed 

Funny gray area i my self have used to claim surplus (and got it) , the second foreclosed, before my first , which put my mortgage in a bad position BUT I COLLECTED THROUGH THE JUDGMENT which came next in line!

in this case FOR SURE do not let the first foreclose. I would get in contact with the first make sure you find the special consideration ( i can almost assure you they filed) and get a payoff. 

Hope I'm not misunderstanding what i read and are not being a contrarian to what everyone's thoughts for this case are.

Best of luck!

So, lets use miami dade auctions happen Mon, Tuesday and Wednesdays. Must or "a lot" of investors begin their research on Thrusday for the upcoming week (this to minimize the risk of doing Due diligence on a sale that will cancel). 

The above makes sense but 4 days its just NOT enough time to analyze all possible deals (big net i spike about) This is why you see over and over the same investors attempting to buy on just a couple of zip codes or area (usually the markets they know the best)

I'm POSITIVE that a "big net" is one of the "must haves" to win bids a constant base. 

Just off the top of my head i say you should have A MINIMUM OF 10 potential investments a week to win 1-2 a month.

I say start a month out at least, How do you do this without spending endless hours or money prospecting? 

Learn to recognize obvious cancellations, a create a good due diligence plan (i made a post with how i prospect and the order i do my due diligence, let me know if you need a link)

Hope this helps!