BAMZ--follow-up With BOA
Well, it looks like BOA is willing to work with me but their investors want a steep promisary note. Today I have agree to up my purchase if they will be flexible. I have a buyer lined up and there is plenty equity but I'm not overly sophistiacted.
BTW--Have you ever dealt with National City Mortgage? I came across a conv. mort. with them. Any thoughts?
Jim 
I would be interested in knowing more about National City Mortgage as I am about two days from making a short sale offer.
C-
Jim,
Have BOA responded to your higher offer for flexability yet?
National City is a Large bank like BOA. Not quite as big as them, but with a similar experience in working with them!
BAMZ
Bamz--
Nope. Should hear something today. BOA would move forward but "MI Company (investors)" want the promissary note. We're waiting for their idea on a higher offer from me release the prom. note.
What could BOA do if we go ahead with the short and prom. note on the buyer and they end up not paying it down the road?
Jim
Jim,
If BOA will short but requires the promissory note, it would be just an unsecured note.
If the homeowner did not pay the PN, the bank could turn it over to a collection agency, or even worse, they could sell it to a collection group of attorneys or the like who would continuously come after the homeowners earned dollars or assets. I will be real careful of giving the homeowner advice as to what could or could not happen with this promissory note. If they sign, they will need to sign with the intention of paying it off!
Keep me posted with how things are working!
BAMZ
Bamz--
Great advice. Looks like the owener is going to let the house go to foreclosure. I might just go to the auction and see if I could pick it up for a fair pirce and then give the owner some $$$$ for their rights of redemption.
I'll let you know---Jim
Jim,
I always purchase homes in preforeclosure, however I went the sherrif sale the other day and was shocked at what I found.
The banks make the opening bid. There were several opening bids that were for half of the amount of the amount due.
They just openly stated that there is a deficiency judgement for $x on this property and the opening bid is $X. A lot of the banks simply didnt want to take these properties back so they opened with a ridiculous bid.
Another investor that was there was not interested in any of the properties that were on the doc sheet, but he makes it a habbit to show up anyway. He ended up buying a house for only $40,000 that had a amount due of almost $90,000.
Moral of the story, you may want to show up to some of your local sales. You just might be surprised at what the banks do at the last minute!
BAMZ
GOOD PSOT BAMZ;
I would not hurt to show up on foreclosure sales, IN NY you have to have some funds in other to even go to forclosure sales, is there any way to go in if one has limited funds
Hi bigtime18,
In my state we do not need money to simply attend the sales, however if want to buy one, they require 10% down at the time of the accepted bid, and generally the balance in one business day.
If you dont personally have the funds, one great way to buy these is with a Private Money Partner. Sherrif sales are more complicated than simply doing short sales, so before you decide to bid on one, I would suggest paying a local RE for an hour of their time to make you aware of possible road blocks!
One good decision can make you tens of thousands of dollars. One bad decision can put you out of business!
Best of Success!
BAMZ
Your lucky, Not here where I live. You have 10 minuts to pay the trustee or they take it back and offer it for sale next month. That is correct, I have to go to the sale with different denominations of cashiers checks in my pocket, the lender will sent me "change" with my deed in the mail.
[addsig]
Hi WheelerDealer,
Wow! Your area is run with an iron fist isnt it!
You are going to fall off your chair when you hear this. I stated above what is typically required in my city, however at the last sale the Sherrif spoke before opening the bids and said
"If you need run down to the bank after I have accepted your offer to get your 10% funds, that would be ok with me".
I have never heard of such a thing, but talk about flexibility. Perhpaps it was because those houses had been postponed before and he was tired of them, etc. At any rate, very investor friendly!
Best of Success!
BAMZ
I bought a propterty last month at auction and no one knew who I was supposed to pay. I brought the cashiers check the next day and they were looking at me with a blank stare. Of course this was one of those small country towns outside of a major metro area.
It is funny how various county govt's work so differently. Makes me wonder how long I could have waited to pay them. When I inquired about payment before the auction they were stern about paying within 24hrs but this sure didn't seem the case.