|
Home
Discussion Board
"Hands-On" Training
Title Holding Trust
Speaking
Schedule
Store
Foreclosure
Codes
50 State Resource Data
Foreclosure Glossary
Foreclosure Statistics
60+ Yrs Interest Rates
Fillable Forms
Archived Articles
Dingbat Retirement Plan
Links
Contact / Map
Home
|
[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ]
Re: JBB mechanics in a flat market
Posted by Jorge on April 21, 2003 at 11:15 AM
In Reply to: JBB mechanics posted by SeanW on April 20, 2003 at 10:21 PM
Sean wrote:
But isn't it just trading one set of risks for another?
------
I don't think so. That is why I mentioned to talk to the
holder of the second to get an idea if they are willing
to dump the note before hand. Now remember. I also mentioned that a deal should at least
pencil out 1st+2nd+20%/equity=FMV. Therefore if the second
does not want to deal you still make a 20% Sean wrote:
If you get the deed first, you may run into the problem of a 2nd that refuses to deal.
After all, they may be tipped off that a better credit risk is now "on the hook".
-----
Who would tip them off? That is why I mentioned to buy the second and then record
the deed obtained from the owner via EPA( "grant deed" that is) Sean wrote:
Suppose you get the 2nd before the deed, and maybe the owner feels some relief-- and tries
to screw with you. You can still continue to debate with him, that his situation is going to
get worse by going through the foreclosure of the 1st, and eviction by the lender.
------
Relief from what ? if the 1st is foreclosing, his mind is there.
Who would tell him that you now own his second note. Not you I suppose.
Unless He goes to the county clerk and know how to read the assigment of trust
deed, he will never know until you start to request payments. Sean wrote:
What if the foreclosure happens? Well, you lost your investment in the 2nd. But
you probably also learned that the owner would have been such
a hassle to work with, that you will be glad you never got that deed, and
were able to scuttle the deal. I would even argue it's not worth
buying the 1st at the sale, if things have soured to this point...
-----
I don't like to lose. I try to minimize the risks. Having the
deed to the property from the start gives me the rigth to evict
him if neccesary.
Follow Ups:
Post a Followup:
|
