Buying Notes
i recently ran across a properrty that was empty, and i couldn't find the owner. but i found the person holding the note to this property. He eager to get rid of the note and told me that he would be willing to sell it to me for $2,000. It's a 90.000, mortgage. he explained to me that he just want out of it. Now i don't know anything about note buying. Is this something i should just walk away from? The owner have split. would i be buying a problem? How would i proceed? thanks.
A 90k mortgage for 2k?? I think I would ask some questions. Would you buy a brand new Mercedes convertable that retails for about 90k for 2k. Something sounds fishy.
There are good deals out there... but this just doesnt sound right. Maybe he already sold the loan and is now doing it again.
Start a dialogue with the lien holder and get more information.
I agree I would definately do my homework on this one. That is a large chunk of change to be letting go. I would make sure you knew what position the note was in and to see if there are any other liens (like a Federal Tax Lien) on the property.
I would also make sure my purchase contract has full recourse against the seller, if I decided to buy so I can get my $2,000 back. Something sounds very odd here.