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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Foreclosing 1st being sued.... Posted by Z.H. - Nor. Cal on May 06, 2009 at 11:27 AM Hi, been a while since I have posted here, been real busy with deals up here in Nor. Cal.... I am trying to find the angle on a deal I am chasing at the momemnt and am looking for some guideance... Scenario: Private money 1st is foreclosing due to note being due. Borrower is suing Lender ofr Usury as the loan was made at a high interest rate with no Licensed broker involved in the loan transaction. From what I can tell the borrower will probably win the suit, if the judge goes by the usury laws. I know the lender, he is willing to sell his note for face value at no discount. If there were no issues with usuary/law suit invloved with this note I would buy it at face value as its a very, very low LTV. So the question becomes how do I approach this deal. I have come up with several options but dont know which is better: 1. Buy at trustees sale. If borrower/owner doesnt get an injuction to stop the sale I dont think they can unravel the sale later. I would probably buy and then put money into it ASAP so that if it was unraveled I would have to be compensated for what I have into it as well. This is not the ideal option as I think it will get bid up at the sale. This property looks great from the outside but needs a lot of work on the inside, someone will over pay after doing a drive by 2. Buy the foreclosing note and bid up at the sale to make sure I take it back. I dont think this is the best option as I assume all of the usuary issues transfer to me if I buy the note, and borrower is currently suing lender 3. I am checking to see if there are any Jr notes,I dont think there are, but if there is I will approach Jr note holder for a buy out. Doesnt look like there is any JRs, will know for sure later today when i hit the recorders office. This woudl be a great option, but I dont think there are any JR notes 4. Approach buyer/owner and make a deal with him. Not a deal where the preforeclosure can be paid current, note is due. Would probably talk him into signing a Jr Note with me as Benne so that I can buy 1st on 1st right to buy at sale. I am thinking i partner with him on the house to get it complete and sold, he makes a profit that way and can still win his suit against lender on usury and collect 3x interest paid or what ever judge gives him. I have never done a Jr Benne buyout, if I go this way I understand how to create the DOT, record etc, but how do I go about buying the first out, do i go to the sale with cashiers checks and tell trustee I am the Jr note holder, if so what do i bring to prove this, and when do I talk to trustee, prior to the auction? If done some other way can someone fill me in? Ok, sorry for writing a book here, can someone with some knoweledge give their opion of the best way to approach? i have about 3 weeks to make this deal happen. if so its a good one, ROI will be well over 100% in a matter of 120 days... thanks Follow Ups: Re: Foreclosing 1st being sued.... Rick, the Probate Guy 9:39 AM, 05/10/09 (0) Re: Foreclosing 1st being sued.... Z.H. - Nor Cal 2:42 PM, 05/06/09 (7) Re: Foreclosing 1st being sued.... Z.H. - Nor Cal 2:47 PM, 05/06/09 (6) Re: Foreclosing 1st being sued.... JK (the other JK) 3:16 PM, 05/06/09 (5) Re: Foreclosing 1st being sued.... Z.H. - Nor Cal 3:27 PM, 05/06/09 (4) Re: Foreclosing 1st being sued.... Spencer 3:47 PM, 05/06/09 (1) Re: Foreclosing 1st being sued.... jc 5:36 AM, 05/08/09 (0) Re: Foreclosing 1st being sued.... Z.H. - Nor Cal 3:47 PM, 05/06/09 (1) Now we are seeing eye to eye. Yes cut a deal with the owner (nt) JK (the other JK) 4:11 PM, 05/06/09 (0) Re: Foreclosing 1st being sued.... JK (the other JK) 2:10 PM, 05/06/09 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Hi, been a while since I have posted here, been real busy with deals up here in Nor. Cal.... : I am trying to find the angle on a deal I am chasing at the momemnt and am looking for some guideance... : Scenario: : Private money 1st is foreclosing due to note being due. Borrower is suing Lender ofr Usury as the loan was made at a high interest rate with no Licensed broker involved in the loan transaction. From what I can tell the borrower will probably win the suit, if the judge goes by the usury laws. : I know the lender, he is willing to sell his note for face value at no discount. If there were no issues with usuary/law suit invloved with this note I would buy it at face value as its a very, very low LTV. : So the question becomes how do I approach this deal. I have come up with several options but dont know which is better: : 1. Buy at trustees sale. If borrower/owner doesnt get an injuction to stop the sale I dont think they can unravel the sale later. I would probably buy and then put money into it ASAP so that if it was unraveled I would have to be compensated for what I have into it as well. : This is not the ideal option as I think it will get bid up at the sale. This property looks great from the outside but needs a lot of work on the inside, someone will over pay after doing a drive by : 2. Buy the foreclosing note and bid up at the sale to make sure I take it back. I dont think this is the best option as I assume all of the usuary issues transfer to me if I buy the note, and borrower is currently suing lender : 3. I am checking to see if there are any Jr notes,I dont think there are, but if there is I will approach Jr note holder for a buy out. Doesnt look like there is any JRs, will know for sure later today when i hit the recorders office. : This woudl be a great option, but I dont think there are any JR notes : 4. Approach buyer/owner and make a deal with him. Not a deal where the preforeclosure can be paid current, note is due. Would probably talk him into signing a Jr Note with me as Benne so that I can buy 1st on 1st right to buy at sale. : I am thinking i partner with him on the house to get it complete and sold, he makes a profit that way and can still win his suit against lender on usury and collect 3x interest paid or what ever judge gives him. : I have never done a Jr Benne buyout, if I go this way I understand how to create the DOT, record etc, but how do I go about buying the first out, do i go to the sale with cashiers checks and tell trustee I am the Jr note holder, if so what do i bring to prove this, and when do I talk to trustee, prior to the auction? If done some other way can someone fill me in? : Ok, sorry for writing a book here, can someone with some knoweledge give their opion of the best way to approach? i have about 3 weeks to make this deal happen. if so its a good one, ROI will be well over 100% in a matter of 120 days... : thanks [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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