If you pursue buying the Note make sure to have iron clad contracts to purchase so you do not end up with the task of foreclosing as the Note Holder.

In Florida, as of January 1 2010 you must hold a current Mortgage Broker's license or be a licensed Atty in Florida to negotiate on behalf of someone else with a mortgage holder.

These seem to be the most hard core negotiators...and many have taken a "Pay us a lot or we will let it go to foreclosure" approach. I am assuming that based on the price they are paying for these notes, they only ne...

The 2nd lien holder Citi, is taking the homeowner to court.

Are you a buy and holder or are you a WHOLESALER?

I understand that some folks do flip condos and houses and can make a profit, but what about buy and holders - those that like to buy and rent out for some monthly cash flow?

Just running down and filing a QCD can get you sued after the fact for wrongful foreclosure.A Sub-2 with a second DOT allows the holder to use a non-jusdicial foreclosure which will be much cheaper and quicker than a judicial process.

Do you notify the note holder that you entered into a sales contract?

Based on the numbers of FMV ($530K) and the your end-buyer sales price of ($500K) plus the IRS and second lien holders, comissions, and closing costs, you will not likely be able to make enough profit if they do not accept your original offer or at least close to it

"Sold for costs" end up as REO; "sold to third party" can sometimes end up as REO too (when a junior lien holder put in a bid to cover debt owed to him, and ended up highest bidder).