All Forum Posts by: Adam Walter

@Adriese Williams.  Yes I did receive the funds which surprised me a little.  Afterwards I found out that there is an ongoing lawsuit against PreREO in Washington State.  I know this because they filed an affidavit which clouded the title on a land contract that I purchased from them.   

Hi @Carlos Scarpero,  I’m an investor in the Dayton and Cincinnati area and I’ve been both a private lender and private borrower.

As a borrower, I utilize my private lenders whom I pay between 8-12% to quickly purchase properties that are distressed or low in value. I’ll take  a year or so to refinance those into a long term loan and then use their funds for a different property. These loans are so much easier and cheaper than a hard money loan. 

As a private lender, I will sell a property with seller financing to someone who may not qualify for a loan or the property is distressed or low in value. 

My experience in Ohio (it may be different in your area) is that if the bank brings the forclosure, then they 99% certian to bid on it unless the amount owed is lower than the opening bid.  What their top dollar is depends on a lot of factors and whether or not the bank pays the back taxes before the sale or after doesn't really matter.  I feel the main reason the bank pays back taxes is to protect themselves of a tax foreclosure happening and they loose their security for the loan. 

If it's a tax foreclosure, to @Bruce Lynn point, the bank will normally pay the taxes before the sale.  Very rarely will a bank bid on a tax foreclosure, if it happens it's usually small local banks who would rather have the county do the foreclosure instead of them.  

This might be interesting:  I purchased a property subject to a bank's defaulted note and mortgage several years ago.  The previous owner filed bankruptcy and gave up the property in the bankruptcy.  The bank never filed foreclosure and the previous owner sold it to me.  I am purposely not paying the real estate taxes with the hope that the bank will not see the eventual foreclosure and I can bid on it at the sale to get the lien removed.  Fingers crossed.   

@Jorge Newbery Can you comment on this?

After multiple phone calls and emails, I delivered the following email regarding my PreREO note purchase:  

Hi Karen,

Any update on this? I am growing very frustrated. The court received the funds 5 months ago, the sheriff mailed the check to the attorney's office in October 2023. The check has been cashed and it's still not settled with me. I am being charged $225 a month in interest on my loan to AHP. I'm feeling that I am being milked and preparing to get my attorney involved if we don't settle this soon.

In Ohio tax liens are only sold to large institutional investors in million dollar bundles. The property owner can set up a payment plan with the lien holder to pay it off. 

 I purchased a PreREO deal from them about 4-5 months ago.  There were a few hiccups which were resolved quickly and communication has been good overall.  My foreclosure sale date is the end of March 2023 and I will not anticipate getting paid from the sale for another 5-6 months.  I am in Ohio and purchase properties at foreclosure sales and am familiar with the process.   Sometimes it can take a while.  

Here is a good start:  https://assets101.com/shop/

Dorsie has a good YouTube on Wraps

@Cheryl Moore  Short answer is yes.  I invest in Dayton, OH.  Feel free to reach out to me if you'd like to discuss the situation in more detail.  

I would do a little more research and reach out to an attorney if you want to make the note marketable. Since it’s your primary residence the loan would be owner occupied and fall under Dodd Frank regulations. I’m pretty sure you can’t have a balloon payment and most investors probably won’t touch it. 

Which state?  Every state does them differently.