BUying The Note In Preforelosure??
OK,
Assuming that most notes are for sale why not:
1. Buy the note of a property in foreclosure for a discount from the bank and then continue foreclosure yourself on the property?
It would seem that the competition would be a little thinner. If the owner refi's then you got your note paid at full value along with the penalties etc.
I would be interested in hearing from anyone that has done one of these.
Randall
[addsig]
This is a good question. I wonder why there are no responses yet? Probably because you are onto something! I have some of Joe Kaiser's material and he sometimes uses this approach. He says that any entity can foreclose (as in actually do the paperwork) Of couse you are better off using a lawyer. From my limited experience, it seems banks would rather short sale than sell notes. I think they are shown differently on the books. At my last closing I asked my banker about the idea of buying some of his banks defaulting paper. He had a puzzled look and responded " I'm not sure we do that but it sounds like a good idea" This was a small bank that I work with but hopefully this may lead to something. I hope you get a response from someone who does this regularly.
It's easier said than done. I have made a half dozen attempts without success. The fact is almost alll lenders will do short sales. Some lenders witl discount the mortgage. There are lenders who sell non-performing loans , generally in packages. at a discount. They're there you just have to beat the bushes and talk to the right people in the lender's chain. I'd sure like to push the right button(s).