Buying A Bank's Position
Does anyone have experience buying a bank's mortgage position? I've found a vacant property that's in the foreclosure process. The date has not been sent. I've had a few conversations with the lawyer handling the case. He asked if I'm interested in buying his position.
Any advice/info on how to do this would be helpful?
Thanks and continued success.
jeff
You are talking about purchasing the mortgage via an assignment.
By buying the mortgage for cash, you would be stepping into the mortgagee's shoes.
Ask the lawyer what he would charge to continue the foreclosure process thru Sheriff's Sale/Trustee's Sale/Evision, etc.
Due to the high balance of many senior mortgages, it makes sense sometimes to try to purchase the juniors... at a discount, and try to facilitate a short sale.
[addsig]
Buying the bank's note & position would be a very smart thing to do, specially if there's a 2d note...because the foreclosure of the 1st would eliminate the 2d lien, and the 2d note holder would have to bid at the auction to protect himself...and generally the 2d note holder doesn't even show at the auction.
As to HOW to do it, nothing to it...the bank's lawyer will do the assignment doc for you...then you just continue the foreclosure and sell the property at the auction.
There isn't a second mortgage. A cursory title service we subscribe to does indicate there are some liens on the house - no specifics on how many and how much.
The judgement is for 130K. The property in good condition is worth 150K. It probably needs 25K in work. It's been abandoned. So 70% of the ARV - repairs is $87.5. Any idea on who much to factor in for legal costs.
thanks for your help.