Buying a REO but I have a defaulted loan with the selling bank

2 Replies

Hello all, first time poster here. 

So I'm planning on buying a REO property which seems to be a great investment. The issue is that I have a defaulted second mortgage loan with the selling bank, so the question is; if I submit a cash offer, is there a possibility that the bank will keep my money to cover my current debt with them?

Thanks in advance.

Originally posted by @Juan Rodriguez :

Hello all, first time poster here. 

So I'm planning on buying a REO property which seems to be a great investment. The issue is that I have a defaulted second mortgage loan with the selling bank, so the question is; if I submit a cash offer, is there a possibility that the bank will keep my money to cover my current debt with them?

Thanks in advance.

If you buy as a sole proprietor its highly probable... try to secure it via a partner and have them sign off on the documents with the attorney( IL being an atty state its a must to utilize them for REOs). IL is on board with the series LLC perhaps that can assist you....or just plain out ask an attorney. My coin.

Kudos,

Mary  

The odds of the right hand telling the left foot are extremely remote.  For a traditional mortgage, without a judgment and a seizure order,  it wouldn't even be legal.

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