Buying The Second Before T/S
I'm interested in buying a second that's about to go to TS. I'd like to approach the lender but I'm not sure how to go about doing that. What department would I ask for? The lender is GMAC mortgage.
The first is no longer in arears, according to the owner. With the first and the second the home is 65% LTV.
Homeowner is not wanting to sell the house to me. He says he was unaware that the 2nd was in foreclosure. Yeah Right!
I'd like to buy the second and foreclose on this guy. I'd also consider calling the note so he has more to pay off. Any helpful hints on this would be much appreciated. Any pitfalls I should be aware of or any thoughts on what needs to be carefully considered before trying this strategy? 
If the 2nd is going to foreclosure, the second will not sell you their note.
Why would they? In a few months, they will either get their money or the property.
If the 1st is going to foreclosure, GO FOR IT!
Hope This Helps!
Mrs. Meltzer
Mrs. Meltzer,
Thank you for your response. My thinking is this; the opportunity lies in the perception of the situation. The note holder has seen nothing but problems. the note is in default, payments are not being made, they may have to take the property back which they are not in this business to do, there may be (which in this case there is), a senior encumberance and the holder is facing the prospect of having to cure any default and start making payments on the senior lien. The note holder may not have done all their homework to understand the position they are stepping into; the condition of the property, possible bankruptcy on the homeowners part further delaying them getting their money, the back taxes owed and similar matters. Isn't it possible that the bank would want to sell their note for any of the above stated reasons? Am I way off here? I guess I believe that buying defaulted notes at a discount presents a substantial opportunity to an investor who is willing to take the time to investigate the situation and asses the risks. It's those very "risks" that I'm hoping the bank has all ready seen enough of.
Please keep the feedback coming because I really appreciate you taking the time to respond. -Sarah
Sorry to interrupt, but what is "T/S?"
I've not seen that abbreviation.
A T/S is a trustee's sale. The property is scheduled for auction (foreclosure).
Sarah,
I *personally* have not had any luck purchasing a note from a bank that is the first in the foreclosure line.
But don't let me stop you from trying! You have nothing to lose!
Let me know how it turns out.
Hope This Helps,
Mrs. Meltzer