Buy The Note, Not The House, Then Foreclose

Buy the Note, not the house Then Foreclose



Thanks in advance to anybody who can shed some light on this Idea:

SSPro, Mr. Locke, Bargain



My point is this:

Can you buy the mortgage at a discount and then continue the foreclosure that is in progress and

Foreclose for the full amount of the original note:

Essentially you get an assigns and keep on trucking



Example:

Note: 100k

ARV: 100k

Buy the note at 60k and continue to foreclose at 100k

Nobody will bid, except me $100, and I will end up with the house anyway



I called the mortgage Lender and they want an offer on the note.

If this works the owner is gone and it doesn’t matter, pretty house



David

Comments(4)

  • LeaseOptionKing8th February, 2007

    Why not try to get a Deed in lieu of foreclosure? Is this a first mortgage?
    [addsig]

  • JohnLocke8th February, 2007

    dsREI,

    Moving this over to the Short Sale forum, this sounds like one for SSP.

    John $Cash$ Locke
    [addsig]

  • LeaseOptionKing9th February, 2007

    tbird, if he owns the discounted Note, he makes the same profit as before...except that he no longer has the expense and time of a foreclosure to deal with if he gets the Deed...thus he has made more profit.
    [addsig]

  • kimd229th February, 2007

    toobizee,
    Two witnesses are required for any interest in real property for a term of one year or more or an indeterminate term. A notary seal is not required, but if you do have the document notarized, the notary may also serve as one of the two witnesses. F.S. 689.01
    As for the option being a cloud on the title, I do think that most title companies would want it cleared up before allowing the closing to go through, probably just an affadavit by you. If the option imposes no duties on you, then I would give a affidavit or release to the owner and let him/decide when and if to record it. I would have the release signed in the presence of two witnesses. This is not legal advice, but general info.
    Kim
    [ Edited by kimd22 on Date 02/09/2007 ]

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