I was brought the opportunity to buy the note on 40+SFR, however, it is a blanket loan and all 40 are under one note. If the borrower isn't paying do I have the right to foreclose on all 40 at one time or will each home have to be foreclosed individually?
You have the right to foreclose but that will mean 40 separate foreclosure actions.
I ran in to a similar situation in Michigan where I bought a single note with 4 rental properties under it. It was 4 foreclosures.
@Logan Hassinger thats what I thought, that will be crazy to pay for 40 foreclosures.
Depending on the price you pay for the note, it may make sense. You also wouldn’t have to foreclose on all of them, If say only 25 of them you really want. But I would say you have to be comfortable owning these properties at the end of the day.
Having multiple homes under one note can be complex. Also check the language for how a payoff works and value of each. Say the seller sells one - typically there is language they must pay 125% of outstanding balance...
Logan so let's say I foreclose on half if them, what happens to the other half.
@Chris I am waiting to get the note so I can read it.
Keep us posted on the progress.