Also, if it's in bankruptcy is the property going to be owned by the lien holders if it's not settled.I've been tracking a property adjacent to mine which has been in bankruptcy for 2+ years and will eventually go to the county for a tax sale.

For example: The 1st lien holder if filing foreclosure and was first lien recorded.

And with an option the option holder always has the choice to let it expire unexercised.

The law says that you can not be enriched by your own criminal actions, so the insurance paid off the mortgage holder(s) but not the owner.

I have seen situations in CO where the owner did not file a notice of intent to cure at least 15 days prior to the sale, the foreclosing lien holder refused to delay the sale, and the owner had to go to the sale and bid on the property.

Then what you should sell for-minus-what your "finder's fee is" = reasonable amount to offer current owner.It's my understanding that working from the bottom up by placing a contract on something then trying to mark it up and sell it to a flipper/buy and holder will not pan out for you, the current owner, or your prospective buyers.Check out the blog post below for a good overview of the process, but I would suggest listening to the podcast too for some really great insights on how a possible wholesaling operation might work.

It may be that there's a 99% chance the seller, later as note holder (or their heirs) come back to the well and this is where you have a superior opportunity to negotiate an early payoff or different terms.

I did not see your above post before the thread slipped from my screen (and mind).You can have a Self-Directed TFSA, just like you can have a Self-Directed RRSP.You can write private notes and mortgages in your self-directed RRSP - there are rules around the percentage of your holdings and the arms-length nature of the mortgage ... then there is the trouble of getting your plan holder to play along.My initial research on Self-directed TFSAs seems to indicate you should be able to do something similar.

If paid in full before the time runs out the certificate holder gets cashed in on their lien.

You may have fun getting FHA note holder to release that new lot, but good luck, they may (after an appraisal review) to keep the loan compliant, but, they may not.But certainly, the solution is to do a minor subdivision and cut off that new unit.Don't get hung up with % rules, you need to pencil out deals in your market, the 2% rule won't fly here, the 50% may over a long term but it may not as our market has a lower tax and labor rate.