Buying Deliquent Mortgages On Vacant Property

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Was curious if anyone had experience buying mortgages on vacant properties. My partner and I are looking into this as a viable strategy for acquiring property.

The idea is to buy the note at a discount and then track down the buyer and have them deed us the property. If that can't be done, retain a lawyer and continue with the foreclosure process.

Has anyone had success doing this? What is the best way to approach the bank and make an offer on the note?

Thanks for your assistance.

Jeff

Comments(3)

  • kensinvest30th April, 2004

    You may have better luck with you post in the paper/note forum.

  • cpifer1st May, 2004

    I disagree with you somewhat kensinvest. This is a great forum for this question. To wit:

    As a part of our pre-foreclosure investment or investment through loss mitigation strategy, we bought a $162,000 note from Bank One for $90,000 yesterday.

    We didnt have to go find the deal because the deal found us and because we bought the mortgage, we will easily "flip" it to an investor/landlord type for a quick $15 or $20 grand.

    You keep on keepin' on there is ChiTown little buddy. I don't know that I would want the mortgage on a vacanct house but then it will foreclose like any other home. Gotta get it inspected and do your due dil like any other project but I salute you for thinking outside the box.

    C-

    :-o

  • Lufos1st May, 2004

    When playing the pre foreclosure game it matters not (lil buddy) if the property is full of people or vacant. You do your inspections and gather your facts. You then make an offer to buy the note.

    We have had very little success in this line of endeavor as most lending institutions have a quick appraisal or Brokers Opinion as they enter into the foreclosure procedure.

    A better line with us is given an equity we try to find a lien or mortgage, or trust deed behind the mortgage now starting into foreclosure. With this approach we have been able to gain considerable discount in purchase of the that secondary note.

    Hang in thar, lil buddy, now where did I put that spitoon.

    Cheers Lucius wanna be Texan

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