Buying Mortgage Notes Directly From Banks On Properties They Are Foreclosing On
I would like to buy Mortgage notes on properties being foreclosed by banks, directly from the banks.
1. Will banks deal directly with me and sell me the note on the property they are trying to foreclose?
2. Will they sell me the note at a good discount from the amout owed on the note?
3. Can I just evict the owners in default once I buy the note, or do I , by law, have to go through the eviction process and auction the property?
1. Some will, some won't. Just call and ask.
2. Yes, they may sell at a discount depending on their perception of the risk involved.
3. No, you must follow to the letter the foreclosure laws of your state. After a legal foreclosure is completed then you can seek to evict via a court order.
4. Other considerations: the homeowner could file BK after you buy the note. This could add 6 mos or more to the foreclosure process.