Maybe you could put together a short sale. The bank sometimes takes less to off the property. then it's rehab time. and back on the market at the original price. You should be able to pocket a few bucks.
The fact that the bank already owns it (hence REO or Real Estate owned) means there is no mortgage. You can't take "subject to" something that doesn't exist. <IMG SRC="images/forum/smilies/icon_biggrin.gif">
Finding that lender who will well the property newly acquired at the trustee's sale at a substantial discount is not easy although it is possible through a careful selection of lender sources of such properties. Individuals (not lending institutions) normally present better opportunities to purchase at a discount.
Dealing with REO's normally requires upfront capital and most lenders will not due a deep discount early into the game.
A lot of factors go into convincing the lender that a discount on their loss is to their best interest.
Your question shows me that you need a little more study and research before you start dealing with REO's. I suggest start out becoming a bird dog for other investors while you learn REI.
Or if you have some cash at hand try dealing with Junior Notes - You will need to focus on what is called a "Friendly Junior Note" This type of investing is just a bit more complex but is an attractive way to acquire properties with less competition than purchasing at the trustee's sale or dealing with REO's.
If the holder of the junior loan agrees to sell their promissory note and trust deed at a substantial discount, the purchaser of the junior loan may cure the underlying senior loans and then foreclose himself on the newly acquired junior loan. The sale of the property through the junior loan can bring immediate return on the face value of the junior loan of the acquisition of the property with attractive equity
There is never a stupid question, unless you never ask!
If you buy the junior lein and then cure the first mortgage wouldn't you own both mortgages or loans at this time. Why would you forclose on the junior versus the first. Just trying to understand.
Jmapp,
What are you referring to when you say Subject To. Subject To what?
John $Cash$ Locke
Subject to existing financing.
I assume its the banks loan.
Wouldn't the bank have bought it back at this piont.
I assume I would be dealing with a bank trustee in the nonperforming asset
dept or loss mitigation dept?
Thanks,
J
Maybe you could put together a short sale. The bank sometimes takes less to off the property. then it's rehab time. and back on the market at the original price. You should be able to pocket a few bucks.
Jmapp,
REO's are bank 'owned' property in this case. There is no existing financing to go after Subject To.
The bank is interested in cash or financing the amount they want or you can negotiate for the property.
John $Cash$ Locke
John,
Wow this is good knews I think. I didnt see it that way before.
learning is fun, thanks.
J
The fact that the bank already owns it (hence REO or Real Estate owned) means there is no mortgage. You can't take "subject to" something that doesn't exist. <IMG SRC="images/forum/smilies/icon_biggrin.gif">
Finding that lender who will well the property newly acquired at the trustee's sale at a substantial discount is not easy although it is possible through a careful selection of lender sources of such properties. Individuals (not lending institutions) normally present better opportunities to purchase at a discount.
Dealing with REO's normally requires upfront capital and most lenders will not due a deep discount early into the game.
A lot of factors go into convincing the lender that a discount on their loss is to their best interest.
Your question shows me that you need a little more study and research before you start dealing with REO's. I suggest start out becoming a bird dog for other investors while you learn REI.
Or if you have some cash at hand try dealing with Junior Notes - You will need to focus on what is called a "Friendly Junior Note" This type of investing is just a bit more complex but is an attractive way to acquire properties with less competition than purchasing at the trustee's sale or dealing with REO's.
If the holder of the junior loan agrees to sell their promissory note and trust deed at a substantial discount, the purchaser of the junior loan may cure the underlying senior loans and then foreclose himself on the newly acquired junior loan. The sale of the property through the junior loan can bring immediate return on the face value of the junior loan of the acquisition of the property with attractive equity
There is never a stupid question, unless you never ask!
Good luck
[addsig]
If you buy the junior lein and then cure the first mortgage wouldn't you own both mortgages or loans at this time. Why would you forclose on the junior versus the first. Just trying to understand.