Abandoned Property, Disconnected Phone. Waste Of Time?
If a home owner has abandoned the property and disconnected the phone and the home is about 2 months from going into foreclosure... This sounds like someone who is ready to walk away from the property and screw up their credit. Unless I get there first.
The property has no liens and seems to have a good ARV relative to nearby recently sold properties.
If an investor can find the person, do you think it is worth the time/money? It seems to me that after finding the person it could potentially be a good deal. Your thoughts? Anything I should consider before jumping into this? Does anyone have experiences with situations like this? Are they usually a bust?
From web searches, I already have some leads on the person. Alias, possible current city & PO Box, no phone number or physical address though.
Thanks a ton for your thoughts/opinions/musings...
You said "The property has no liens..." then why would it be headed for foreclosure?
There are no other liens other than a mortgage (no evidence of tax lien or other claimants to the house than the primary mortgage).
Bummer... the owner/father just recently paid off their debts on the place. I will keep my eye on the property in case they get behind again. But generally, its off to other pastures.
Good job, part of being an investor is trial and error. You learn from your mistakes. I suggest finding a local reia and joining or just observing from there. I am in Alabama and have partners that I am working with now. You need a team in this business to get to where you want to go.
Did you attempt a zaba search to locate owner sometimes it works and it is free.
"A short-saled foreclosure is great, too."
What is that?
There are no other liens other than a mortgage (no evidence of tax lien or other claimants to the house than the primary mortgage).
Sorry, but it looks like you are screwed. I say that because you will end up letting the home go and it will affect your credit and security rating.
But you seem young, you may not be in a position that requires a secret clearance, you should really check it out.
You made a very bad call when you moved out of your own home and started renting a place. I think you should have stayed and got your property in tip top shape with the extra money. But this is America, your choice.
I dont generalize and automatically agree that a bad neighborhood is un-livable and everyone there is bad, poor maybe, but not bad.
You should have bought an iron gate for the windows and doors. Im sure you will get some ritzy folks on this board telling you were correct to pack up and run at the first sign of trouble. But even those folks would have rented the place out. It would have been easier to rent if you had stayed and made the necessary security improvements.
But now you are in a very very bad position, i dont think you will move back into the home, so i see it as you are screwed and will force yourself into forclosure for wrong and unnecessary reasons.
In any case, good luck with your decisions on this property.
Ok, surely this will require resilience and creativity.
Lets not waste our time and energy on questioning why things are the way they are.
Start with several focus points:
1. Looking for a very hardy tenant (Big, Bold, Decent)who you can create a win/win with == great rent for great security. Look for 2 Strong Military Guys or Cops or.... and put in some smart security measures. =
Save your neighborhood.
2. Start looking for military departments that are working on these kind of issues. Things are sprouting up. In Md county, I cannot file for rent judgement until I prove that my tenant is not military. (change) Do not jeapardize your career, Do Not get discouraged, DO not let anybody talk you out of looking, looking, looking.
3. Start with HUD to see what else they are doing to secure neighborhoods and keep them from deteriorating.
4. Get those mortgages modified BEFORE you turn into a rental. Get busy... lower those interest rates.
Talk to:
Realtors
Cops
Mayors
Social Service
Look for county to see if they would like to rent for special needs...they take care of security.
......Next ..... We cannot give up....
http://www.hud.gov/news/release.cfm?content=pr09-047.cfm
more help?
Thank you all for the responses. I will continue to try to get some loan modifications and get the home in a condition to rent. I think that is my only option now. Thanks for the help.
You made a very bad call when you moved out of your own home and started renting a place. I think you should have stayed and got your property in tip top shape with the extra money. But this is America, your choice.
[quote]
On 2009-05-25 14:56, myr wrote:
-What are the most useful and reliable websites for foreclosure leads?
I have found the pay sites to be the best. Realquest, westlaw, Dataquick are 3 I have used.
-What is your personal experience with such resources - how important/useful are they in finding good deals?
I have found good deals.
-Would you recommend RealtyTrac?
No.
-Any good resources for finding REOs?
The online sources I mentioned above, lender websites, etc.
Where in this announcement do you see the preclusion of investors?
cj,
Since the property has been through foreclosure, the lenders own them free and clear. There is no mortgage to take subject to.
you buy it from the Bank w/ a FHA mortage, and use subject-to or assumtion is YOUR exit strategy.
CJ,
Why would I want to SELL Subject To...I want the deed to remain in my control until I am paid off.
Sell on a CFD maybe, but not Subject To.
John (LV)
cjmazur,
Quote:
On 2009-05-18 00:18, cjmazur wrote:
you buy it from the Bank w/ a FHA mortage, and use subject-to or assumtion is YOUR exit strategy.
Just curious how many times have you used this exit strategy when selling your FHA properties?
John $Cash$ Locke
[addsig]
John:
I have never done this technique, as I am not in the residential flipping market.
I would never suggest committing mortgage fraud, it would be a NOO loan.
It would seem that this option is only available for investors who purchase a HUD owned property and FHA loan approval for non-occupant borrower is HUD region specific.
Investor FHA loan to purchase a HUD property is limited to 75% LTV for one-unit properties and 85% LTV for two to four unit properties.
Reference: Notice H 98-32, Handbook 4155.1 REV-5, Section 1-4
Quote:
On 2009-05-25 10:09, NewKidInTown3 wrote:
It would seem that this option is only available for
Reference: Notice H 98-32, Handbook 4155.1 REV-5, Section 1-4
"only"? It seem like this would open up a lot of opportunities.
Did it seem clear that it was restricted to HUD properties, as I was told it could be done on any FHA loan.
The citation I gave is specific to HUD owned property. Did not exclude other properties, just said FHA financing could be used by investors who are purchasing HUD owned properties, subject to approval by the HUD region with jurisdiction over the property.