Beating Up The Banks
Hey guys I’m not sure where to post this so if this does not belong here I apologize.
Heres my question last week I met a gentleman that told he was calling lenders of and offering to buy mortgages at a discount by, ( as he put it beating up the banks) he also said that he was doing this without the owners even being aware of this happening. After he negotiates with the banks and buys the loans he then notifies the owner of the property and either makes new terms or starts the foreclosure process, If he sells at the auction for more than what he paid the bank he keeps the profit, and if he doesn’t sell at auction he does what ever he wants. Sells, rents, L O
This seems kind of unethical to me, the fact that he does this without the owner’s knowledge, even though banks buy and sell notes all the time with out anybody aware.
Is this common? And how many of you are doing this type of business? Its seems very profitable im just not sure of the ethics. By the way this gentleman is mainly working the California Nevada and Arizona area.with much success
Buying the note from the lender is legal and ethical. Contacting the homeowners and unilaterally changing the terms of their note is at the very least a breach of contract, and could even be illegal. Foreclosing on a property owner who does not agree to the new terms is probably also illegal.
[ Edited by NewKidInTown3 on Date 11/23/2008 ]
King,
I should have assumed that the notes might be in default and responded accordingly.
My bad. Thank you for clarifying the issue.
hello everyone.
how much savings can one expect when purchasing a home at an auction. for example if the list price of the home is 650k on the mls and it states that the home is in auction status, how much of a savings can I expect?
thanks!
j
realjoyestate-
you might wanna create a new threat and ask that question. Would get a better response that way.
Quote:
On 2009-01-30 12:08, realjoyestate wrote:
hello everyone.
how much savings can one expect when purchasing a home at an auction. for example if the list price of the home is 650k on the mls and it states that the home is in auction status, how much of a savings can I expect?
thanks!
j
good, perhaps some portfolios to cherry pick.
Good point and good wisdom, thanks.