36k Non-performing Note For 6k

Comments(6)

• 
  cpifer19th February, 2004

  Chuck,
  
  Follow your instincts on this one or get it on paper and to an attorney.
  
  C-

• 
  chuck193319th February, 2004

  Thanx Cpfer..
  
  Additionally, he just sent me this email which helps to clarifiy...
  
  Charles The address is 705 Hallvale . I`m not charging you a flip fee. You need a break on your first deal. Yes you legally become the bank But the assignment will be in my name since I was the orignal buyer of the note from the bank. I`ll have to assign the note to you. and secure it with a promissory note with the note as collateral. I`ll will keep posession of the house so I can begin to clean it up. Remember the note has to be foreclosed on and the back taxes paid so you don`t want any part of that end . I intend to put that house in my rental stock.But this deal is a good way you make extra $$ while your learning without putting lot a risk. Remember you will $2000. interest. You can take that in many ways 1. You can take cash and put in the bank. 2. You can also let the $2,000. ride in the next house as a flipfee and make a even larger spread on your investment. Its your choise this is investing. And you know I get a lot of Great deals.

• 
  Ruman19th February, 2004

  Sounds like a deal. Make sure you get it on paper though. Sounds like you know/trust him but still, you don't want someone running with your money.

• 
  WheelerDealer19th February, 2004

  Ask Hibby76 or Davehays they are in the note brokering business

• 
  active_re_investor20th February, 2004

  Chuck,
  
  This one is a little messy.
  
  For you to be protected you should (need) to be the one who buys the note from the bank. Or you need a way to lien the other guy (either on this property or on something else he owns).
  
  It sounds a little like you are financing the other guy. If he has rental property you could make him a loan and secure it on one of them (or a blanket mortgage with multiple properties securing the loan).
  
  It just sounds messy and I can not quite understand why he wants to help. Even if he is just doing you a favor, he could structure things a bit cleaner.
  
  BTW - If the lady comes back and someone tells her that by filing bankruptcy she can tie things up you will get stuck for a while longer. Is there the ability to homestead a property so that she can not lose it in a bankruptcy?
  
  Quote:
  On 2004-02-19 11:33, chuck1933 wrote:
  short story.....
  
  lady gets house from dead mom free and clear. Gets refinance for 36k to add-on. Gets part way throught the addition, and boyfriend shoots all the money up his arm. They split up, and disappear. Bank is in line to foreclose, but courts are backed up.
  
  Now, a guy I met says he negotiated with the bank to buy that 36k paper from the bank for 6k. (the ARV on the house is 40k) He says he will let me cut my teeth on it to get started in the business. He says for me to give him the 6k, then he will arrange to fix the house up and then resell the bad paper for 16k in two months to another investor, and I will get my 6k back plus 2k. He says the only risk is if the lady comes back (and she won't), and even if she does, she will have to satisfy my lien before she can take back possession.
  
  This sounds too good to be true. does first lien and possession (with someone elses name on title) allow an investor to rent the house? (or do anything but wait for foreclosure?)
  
  I am afraid (being a newbie) that this guy is full of crap. He says I have until tomorrow to decide to give him the 6k (the bank stipped for him to close by monday) otherwise , he has plenty of investors he works with that will snap this up instantly...
  
  
  Any thoughts???
  
  
  Thanx!!!!
  Chuck

• 
  Stockpro9920th February, 2004

  I believe that in ORegon you have to be living there for the homestead exemption to have effect.