Option To Buy Note
I have an opportunity where the 2nd and/or 3rd will sell their notes to me. They are high interest rate (12 and 15%) and quite well collateralized, but the key piece of the pie is what does the 1st want to do.
So, rather than "blindly" buying a 12% and 15% note, I was thinking of getting an option for them. That way if I can work a deal w/ the 1st I might not need them, but would have the option to get them.
Has anyone done anything like this. None of the boiler plate option agreements seem to fit.
Is this home in foreclosure, or in arrears? What do you mean by what does the 1st want to do? It it owned by a bank?
I have seen a bunch of private lenders lose out on 2nd mortgages. A option to buy seems interesting with a minimal cash outlay.
In essence, we need more information.