InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Annual Reunion Speaking Schedule Store Foreclosure Fundamentals Code References 50 State Foreclosure Basics Foreclosure Glossary Foreclosure Statistics 70+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map About Us Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Foreclosing 1st being sued.... Posted by Z.H. - Nor Cal on May 06, 2009 at 3:27 PM In Reply to: Re: Foreclosing 1st being sued.... posted by JK (the other JK) on May 06, 2009 at 3:16 PM : : : JK, may be I should have explained myself better. Normally I would not pay face value for a note that isinvolved in litigation. : : : But with this one, the note amount is a very low LTV based on current value. : : : Note amount is 250k, needs 100k, worth over 900k on a very fast fire sale once work is done. : : : Over 100% ROI if I paid cash for it. I usually use a HM lender to pull cash out once bought at sale so the ROI would be based on about 175k out of pocket : : : looking at around 490k in net profit after agents commissions for basically 175k out of pocket. not a bad deal. : : : the 120 days comes from knowing my market, i can have it done fixed, sold and closed in 120 days with a 900k resales price... : : : so ROI is actually far higher than 100%, was just stating its a good deal if a deal can be made. : : : So, there is the explanantion. Nothing has been recorded regarding the litigation no les pendens etc). Cant find record of any civil suit filed either, : : : so its possible that the borrower/owner hasnt filed suit yet or may not, I said there was a lawsuit becuase that is what I was told by a mutual friend of lender and I : : : So, lets set aside the reasons why I want to proceed, if I were to what do you think the best option is? : : ----------------------------- : : To be a little more clear, my goal here is to end up with the property for as close to the 250k note amount as possible. : : That seems to be a given but just to clarify... : If you buy the note, what's to stop someone from bidding it to $700K+ -- assuming the property is truly worth $900K? ------------------------------------ JK, if I buy the 1st then someome in my pocket will be there with cash to over bid. trust me I will end up with the property for the amount of what I pay for the note... I dont want to go this route as there may be a usury issue with the note, that is what i was asking about in my original post. there are a lot of ways to skin a cat, I am looking for the best way to approach this. Again, let set aside the what if and what abouts etc, out of the options i listed which one seems the best way to go. or is there another option i am missing. If you dont have an opinion on which way to go, please say so. I of course am consulting my RE atty, but he is out for a few days and I was hoping someone like Ward etc would have an opinion. this will give me a few days head start If there are no opinions then so be it, will talk to atty in a few days Follow Ups: 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) Post a Followup: Name : E-Mail : Subject : Comments: : : : : JK, may be I should have explained myself better. Normally I would not pay face value for a note that isinvolved in litigation. : : : : But with this one, the note amount is a very low LTV based on current value. : : : : Note amount is 250k, needs 100k, worth over 900k on a very fast fire sale once work is done. : : : : Over 100% ROI if I paid cash for it. I usually use a HM lender to pull cash out once bought at sale so the ROI would be based on about 175k out of pocket : : : : looking at around 490k in net profit after agents commissions for basically 175k out of pocket. not a bad deal. : : : : the 120 days comes from knowing my market, i can have it done fixed, sold and closed in 120 days with a 900k resales price... : : : : so ROI is actually far higher than 100%, was just stating its a good deal if a deal can be made. : : : : So, there is the explanantion. Nothing has been recorded regarding the litigation no les pendens etc). Cant find record of any civil suit filed either, : : : : so its possible that the borrower/owner hasnt filed suit yet or may not, I said there was a lawsuit becuase that is what I was told by a mutual friend of lender and I : : : : So, lets set aside the reasons why I want to proceed, if I were to what do you think the best option is? : : : ----------------------------- : : : To be a little more clear, my goal here is to end up with the property for as close to the 250k note amount as possible. : : : That seems to be a given but just to clarify... : : If you buy the note, what's to stop someone from bidding it to $700K+ -- assuming the property is truly worth $900K? : ------------------------------------ : JK, if I buy the 1st then someome in my pocket will be there with cash to over bid. trust me I will end up with the property for the amount of what I pay for the note... : I dont want to go this route as there may be a usury issue with the note, that is what i was asking about in my original post. : there are a lot of ways to skin a cat, I am looking for the best way to approach this. : Again, let set aside the what if and what abouts etc, out of the options i listed which one seems the best way to go. : or is there another option i am missing. : If you dont have an opinion on which way to go, please say so. : I of course am consulting my RE atty, but he is out for a few days and I was hoping someone like Ward etc would have an opinion. this will give me a few days head start : If there are no opinions then so be it, will talk to atty in a few days [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction. Read our privacy policy.

Copyright © 1997-date("Y"), InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455