Tactics to get borrower to come to the table 2 NPN

5 Replies

I have a NPN 2nd note in GA which has no equity. I went through the FC process and now have the deed but the borrower still isn't responding. Based on the communication my workout specialist had with the wife(who is no longer responding and apparently is separated from husband and doesn't live in house) the house may be rented out. I'm sort of at a standstill. Being a fast state, I don't want to spend anymore money to evict only to then have 1st foreclose and I get nothing. I am not sure if 1st is current or not as it seems monitoring the 1st from a second standpoint is not as simple as I thought. What are some of my options or is waiting it out rather than spend any more money on legal the best bet ? As a Broker, I have seen many homes on Auction.com that were listed and of course a warning not to disturb occupiers. Some were even from 2nd position. I would think possibly seeing their house listed on Zillow via Auction.com and/or hungry flippers driving past might get their attention that we are serious. Any ideas? Thanks

If it is truly rented I would seek an assignment of rents and pocket the money.  

Then work out the situation with the first.  If the payment on the first is less then the rent you might just want to start paying the mortgage if the arrears aren't prohibitive and you have a financed rental.  

Originally posted by @Bob E. :

If it is truly rented I would seek an assignment of rents and pocket the money.  

Then work out the situation with the first.  If the payment on the first is less then the rent you might just want to start paying the mortgage if the arrears aren't prohibitive and you have a financed rental.  

Thank you! This has been one of the avenues I have/am considering. Being that I am a novice, I wanted to ask a few questions on here to process some of my ideas to even see if they were a viable train of thought before spending more money on legal and starting the eviction process(assuming that is what will need to be done)

Bob he is the property owner already.  There is no AOR to work with.  The OP completed foreclosure and has an unknown tenant believed to be one of the borrowers who is divorced. 

Bret it doesn't help you to run two threads on the same topic as answers in one thread may not be up to date on the information from the other.  

Good luck.

Point taken Dion, but he is not currently receiving the rent payment so will want to correct that.  

From the way I read the thread it was not clear if it was the owner in the property or someone else.

@Bret N. you need to find out who is in the house. Here in AZ an eviction is $300-500. Call a local attorney and see what they charge or check with the local REIA to see if they have a referral. That should confirm who is in the house and allow you to set a clear path forward. Make sure to coordinate with your attorney and make sure you stay compliant with local laws.

Originally posted by @Dion DePaoli :

Bob he is the property owner already.  There is no AOR to work with.  The OP completed foreclosure and has an unknown tenant believed to be one of the borrowers who is divorced. 

Bret it doesn't help you to run two threads on the same topic as answers in one thread may not be up to date on the information from the other.  

Good luck.

 Geez, I was wondering what was going on. The iPad app is very buggy so perhaps that's the issue.  Well, at least I kept ya on your toes!