Jailbird Skips Town
Hello!
Newbie needs some preliminary help.
While searching for houses today, I met a bail bondsman who has a deed from a bond that was defaulted on (the guy skipped town and didn't show up for court). I am on my way out to view the property, but this is what I've been given so far:
MV: $350K
Price: 285K
(1st mortgage at $192K)
(2nd mortgage at $60K)
(3rd mortgage at $33K - bail bond)
The BB foreclosed on the property 6 months ago. The property is still owner occupied and he/she is still paying the mortgage on time.
What, if anything...can I do with this? Your advice, opinions are greatly appreciated! 
[addsig]
Has the bank foreclosed, if not. I would walk away and look for another deal. unless the owner is willing to deal with you. The BB is not the priority, so it will just be there till the owner tries to sell then it will have to be paid. Hope this helps.
From doing the arithmetic it looks BB will sell you the propery subject to the 1st and 2nd if you come up with the $35K to make BB whole. This looks like a nice deal from your numbers. There are a number of possibilities on the back end depending on your preferences. I might be tempted to let the previous owner continue making payments on your newly acquired house!
According to John Locke, the senior lenders are not likely to exercise their due on sale clause. You might ask John the best way to go forward with the purchase.
You can lease it and hold on to it. Most will suggest not leasing back to former owner. You could also sell it. You will likely need to remove the former owner either with his/her cooperation (possibly with a little cash persuasion) or through eviction.
It looks like you can pick up some nice equity with relatively little cash.
assistanttoyou,
Glad to meet you.
Personally owning a Bail Bond Company myself, I am familiar with how this process works, however you say the bondsman foreclosed on the property yet there is still a 1st, 2nd & 3rd on the property, could you explain this to me.
John $Cash$ Locke
Shades of Morry Schwartz.
Ex cop, worked for Joe Kennedy riding shotgun on the liquor trucks coming from Canada during prohibition. Finaly retired from the NYPD wealthy, never got above patrolman Go figure.
Came to Calif and into the Bail Bond Business. A Diamond in the Ruff. Hard as nails one of my lenders.
Interesting story, the Owner still in property but did not appear for hearing and the bail bond was forfit. That does not make sense.
Does the Bail Bond person have a Trustees Deed ? Given by he who conducted the sale and a title policy which of course accompanies it. If not you are back to the beginning.
Check title pull a preliminary title report or a Property Preview. Be carefull this one might be up side down.
Morry asked me for a loan, seems there was a horse ready to run that was already selected by the jockeys to be a winner. He gave me as security for my $5,000 a Note and Deed of Trust given as security for a Bail Bond.
The horsey became frightened, jumped the rail to the infield and lost big time. I now owned the note. Just one problem Morry forgot to tell me the bond had been paid off in full and Morry never bothered to file a Full Reconvayance. I had it framed and let it hang in my office. Whenever I thought I was super smart I would look at it. Ask Morry for money, a ex NYPD who rode shot gun on liquor trucks, not me, I'm chicken.
Lucius
assistanttoyou,
Well Lucius, comes in again with Califorina law, which it looks like is similair to Nevada.
A Bondsmen can force a sale of the property, not foreclose. The Bondsman would only get what he is owed from the sale of the property, if there is enough left for his end.
You can pull up the California state statutes govening bail bond companys, this will tell you what a bondsman can do in California with property held as collateral.
John $Cash$ Locke