Hey guys! I was wondering if anyone in the group has experience with purchasing an investment property with judgements attached? (I am in the state of Texas btw)
Basically the owners had a rental property and went credit card crazy. Since it was not their homestead property, the creditors filed judgements and attached it to the home. Some of the collections is very old and has been resold to various collections companies and law firms.
I have called the firms to negotiate but can't seem to get past a collections rep.
Any info or ideas are greatly appreciated!
What is there to negotiate? You're trying to deal with secured creditors earning a good interest rate. I would never have reached out to them.
Negotiate the balance of the debt. In this particular case, the original debt was $4k and the collections firms are asking for $27k after interst, fees, etc.
I am willing to pay up to $10k which is still a reasonable gain for the collections firm I would think.
Unfortunately once a secured creditor becomes aware of a potential sale or refinance, they are not likely to compromise... unless the situation can be presented in such a way that this is a chance to get paid something rather than zero.
The theory behind my initial comment is never wake a sleeping giant ... judgment creditors often forget to renew liens.
Thanks for that sir.
The most recent renewal was less than a year ago. Hopefully they take the bait with the foreclosure threats from the owners and accept my offer.
Fingers crossed and I'll keep you posted.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing