Loans are typically referred to us by those holding a note that is not performing.

sounds like not a lot of time to work with.I would suggest checking the tax records and trying to find the current owner on the tax record or any heirs, to determine whether or not there might exist any rights of redemption that can be exercised to either halt the sale or utilize to purchase after the sale.

do they perform random checks or have a systematic means in finding out?

The appraisal must be performed not less than 60 days prior to closing (not stale), but not later than the due date of your next IRS return, usually April 15 of the following year.

Alex, my Jack Russell will have to deal with walks on the sidewalk and getting exercise at the local park.

Have performance clauses in your contract that give you the power to foreclose on the property owner if the investor isn't making the payments correctly.

Forfeiting the earnest money is the usually remedy if you don't perform on the contract.

FYI There are more Non-Performing 1st TD Commercial Notes then I see REO's.

Hello,I apologize if this has been answered several times already, but I was wondering about insurance on a house - when the investor is doing a "subject to" purchase agreement to buy a house in a pre foreclosure, and does not plan to pay off the underlying financing for a period of time, what is the best way to keep the lender from getting wind of the change in ownership and potentially exercising the due on sale clause?

To alleviate your fear, use a Purchase and Sales Agreement that states that your earnest money is full liquidated damages if you the buyer do not perform.