Updated over 6 years ago on . Most recent reply
Note buying tenant occupied
BP Community
we have an opportunity to buy several non performing notes on tenant occupied properties where we buy and hold in New Jersey.
we have an agreement to get title in leu if deal is agreed
The notes are non performing as of June
Example
Property value 140,000
100,000 note
Tenant occupied 1300 a month
Tax lien 6000 no other liens except utilities
what more information is needed?
What would you offer a bank to purchase note?
Most Popular Reply
What is your plan for these houses? Do you want take ownership through foreclosure? Be aware that it can take years in NJ to complete a FC. You need to know how much it will cost in legal fees, Could be $5-8K.
If the people living there are tenants and not the borrower, then they don't need to pay you anything. They have a contract (presumably) with the home owner, which you are not. Owning the note gives you the right to collect mortgage payments, not rent.
Also check with the county to see if there are any fines owed. Is there an HOA involved? If so, see if they are owed anything.
You need to be very sure how much the houses are worth in the current condition. Do not trust what the bank tells you. You need to have someone go look at them and give you an estimate. The tenants may not give permission to see inside. You have no rights to see inside until after you foreclose and take ownership.