CH 13
Just bought what I thought was a for sale home at auction. Turns out owner filed Ch. 13 days before the acution. Attorney called me to tell me the note had matured and if i was still interested to let him know.
What does "matured" mean? Should I be interested?
thx
sounds like the owner filed the BK just in time to get to keep the house, but not quite in time to have the auction stopped. Upon filing a Ch 13; any foreclosure auction is cancelled (and i would expect in your case voided).
I think his intent for "if you are interested" is that if you want to own this guy's mortgage and get the payments from him each month, you should let him know .
Hopefully with the assistance of the bankruptcy code, this homebuyer will be able to save their home and make it right - but unless you want to be a mortgage company and collect monthly payments; i would certainly pass and put your money to work elsewhere.
Adam Beal 1--(CO)---------------
Sounds like the attorney was working for the lender and was suggesting that you buy the note and security instrument. Sounds like the loan had a due date and that date is past. So, the security instrument could be use to foreclose on the note and thus the house. However, the BK stops the foreclosure from going forward.
Sounds to me as though the lender just wants out of the situation. The lender does not want to wait around for the BK to go on. Perhaps does not like paying an attorney to work on the situation.
The lender could probably request a "relief from automatic stay" of the bankruptcy court, pulling the property out of the BK, and then go forward with the foreclosure.
For a sophisticated investor, there might be the possibility of a deal here, depending upon how much of a discount the lender would take to sell the note.
For a beginner? Hmmmm. Only if that person had direct guidance from a sophisticated investor. Otherwise, there is nothing more to do than keep tabs on the foreclosure and bid again if it comes out of BK and goes to sale.
By the way, I do NOT recommend beginners buy properties at foreclosure sales. It is far too risky. In my opinion, this approach to investing should be done only by very sophisticated investors. And even many of them should not attempt it, as it requires a personality and skills that few people have. Foreclosures are very attractive because there is the chance of large profits. However, I suggest you not go this route unless you spend at least six months in intensive study of foreclosures, BK, the order of priority of encumberances, and so on. Only after that should you, in my opinion, plan to bid at foreslosure sales.
Oh. And you have posted this on a forum that specializes in delinquent property tax sales and tax liens. You might get more responses if you post it on a loan foreclosure forum.
Good Investing************Ron Starr************