Buying The Note From Current Lender

Had a lady call me the other day to buy her house. Getting divorced, she & spouse first had a sales figure in mind, but after I saw the condition of the house and indicated that to make it marketable would be expensive, both agreed to sell it to me for what was owed. They both signed a letter of authorization for me to talk with lender.

Because I want this property quickly, would it be better to offer to buy the note out (at a discount, of course!) instead of trying to SS it, and then have owners sign over deed in lieu of foreclosure?

Comments(2)

  • myfrogger18th October, 2004

    Either route you go you will still have a to present a compelling and factual proposal to why they should accept your offer.

    If there are junior liens, this may be something you can get accomplished quickly. A first mortgage is much more difficult because they are the most secured.

  • reinatalie18th October, 2004

    It depends. Is there more then one loan on the property? The difference between doing a short sale and buying the note, is that you have to pay cash for the note.
    Also, you wouldn't have to prove hardship on the part of the owners, if you are buying a note.

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