Sticky Situation
My husband and I found a great place we wamt to buy. The problem is the current owner has a warranty deed which he has not paid on to the private debtor for 6 years+( now he has quit claim deeded it to his relative). We are trying to motivate the mortgage holder to file for foreclosure, so he can have his property back and sell it to us. I have a contract with the mortgage holder for the purchase of the property and I gave him earnest money to secure it. What can we do to finalize this process? Can I buy the note and foreclose on the owner? The mortgage holder seems helpless and the property owner seems to think he can get it for free.
If you buy a note and start forclosure, what happens if maker of note brings it current?
Are you stuck with a long term, low interest note?
Consider: get a large discount on the note, or you might Option the note and all subsequent rights, then pay to start forclosure.
If note is able to complete forclosure - exercise option. If maker catches up payments - you decide if you want to exercise the option for the note.
But if the owner decided to "make good" and catch up... you'd also have six years worth of payments correct? That would be a fairly good lump sum then turn around and resell the note. The other possibility is you foreclose and receive that house. It would be a win/win situation for you right?