All Forum Posts by: Kathy Utiss

I did a post recently somewhere. However, I know from previously taking an investor to them that they only sell portfolios in the purchase amount of $3-6m on the lowest side. There is a qualification package. No pof but do need to disclose tax info, client info sheet, request what your wanting to purchase. Along with a co biography or summary of completed transactions and such. How you intend to service debt. Alot of info. But not hard.

While they may be cheaper than ever before your lucky if the banks are putting out notes that haven't already been foreclosed on from what my source says.

Yes one dept will tell you they don't sell notes but they do. Depends on who you talk to inside Citi. I actually worked for recovery for them in an outside agency. They didn't sell. But after I left agency I kept in touch with an old contact from there and found out they do.

It's kinda disheartening. One buyer I presented didn't happen because they wanted to be paid money on a certain $$ amount collected on deficiencies once buyer purchased these from them.

You may want to verify though that if it's now a deficiency and taken back if the deficiency will be played with. Everything I know of that I spoke about of happened in June 07. I know there was a new bill passed in dec 07 retro to 1/1/07 that if its a personal res is taken and there would be a deficiency the homeowner is not responsible for the tax they would incur on the deficiency. I don't know how its working with collecting on the deficiency now.

Best of Luck,
Kathy

Hi,
Not sure if you ever got this all figured out or not but here's an example of one I used previously. If your dealing directly with the bank request they put in writing an offer of acceptance. Then send bank wire. They should then do the goodbye/hello letter and transfer everything. Sometimes banks get lazy about actually completing the transfer and may require several phone calls for final documents but it does happen.

An assignment for ought to be expected. But I don't think any action can be taken by assignee until hello/goodbye letter is filed. Unless being filed in the foreclosure process which I believe the assignment should work as well. Clarify with attorney.

Monday, April 18, 2005

TO:
First Indiana Federal Bank
1300 Windhorst Way
Greenwood, IN

Attn: Jerry Schneider

I’m interested in making an offer on the following note.

Fleming
2138 W Thomas Rd
City, State, Zip

Account number is #

In speaking with the owner of my firm I’ve been able to get the offer amount to $5,000.00. We can provide proof that we have the funds to purchase. Please let me state that the sale on this is Friday, April 22,2005. Please let me know what we may be able to negoitiate.

Very truly yours,

I'm not an expert but I'd say this.

Cash Purchase fine.
You don't pay taxes on loans
and what his tax amount due is would depend on his expenses for the repair, and purchase. But just somewhat of a guess. I believe there's a cpa guy on here that responds quite well. Some of this real estate stuff gets technicial when you start talking about 1031 exchanges and REITS it gets above my head there.

GOOD LUCK,

KATHY

Here's a story kinda on topic to news such as this.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aaKT9Z_X9okg&refer=home

Maybe I shouldn't be surprised. But I'm curious. How do you turn in everything on a Wed then by the 1st tue of April get the foreclosure sale done? I thought regardless of everything usually a minimum time to foreclose is like 21 days in a non-judicial state.

I would think a motion to the court to sell home would take about the same amount of time and cost less. If this is even an option. Something your atty and debtor atty could work out. Usually a foreclosure person gets a fee and % of the sale on the foreclosure.

Just more to consider. It sounds like you have most of it worked out. Keep up the good work.

Best of Luck,

Kathy

I think something got left out here that makes this seem unprofessional as others have notated. However, I think what he meant here is if you purchase note and they haven't reinstated with lienholder and 1st is taking a foreclosure action that yes a second lienholder could reinstate the 1st/or take position of 1st continue with foreclosure then gain property thru this process. Unless it was bought at foreclosure sale.

Sometimes it's best to structure transaction with homeowner for a deed in lieu or something. But sometimes this can't be done.

While the real estate business is double edged there are some people who buy non-performing notes to hold. As sometimes non-performing assets can be reformed. Others not.

Then yes you do have the people who buy notes in the foreclosure stage.
This is more what is looked at in an unfavorable way. But its the note buying business. Where else could you possibly find a $50,000 debt purchase for $20k then before sale or after sale reap the full debt of $50k? Or take over the 1st position finish the foreclosure keep the property then resell at $160,000 above the value of all mortgages on the property?

These aren't exaggerated numbers. But it's part of due diligence in knowing how to structure your transaction to make it a win/win situation. And is how some real estate millionaires are created. But of course doesn't mean someone has to be ruthless just educated in the business and choosing wise investments.

Best of Luck ,

Kathy

I apologize for not describing more about PACER previously. Sometimes it's a good search mechanism if your coming up with no leads for homeowners. Especially if like a home is vacant and everyone claims to have no clue. Chances are they relocated to another property and let the abandoned home go.

Plus it may have leads for attys their dealing with or a forwarding address for info. Its only .08 per page. Most court systems are online.

Good Luck on Tue though. Hope everything goes well.

Kathy

I don't think I'd have the patience to wait til tue. Do you have a pacer account? If so you could find out things for yourself.

Best of Luck

Once again I "Thank You"; both for your responses. Have another ???What price range would make you think about purchasing. How much more cashflow? Just curious. Hoping it'll help me understand more.

Thanks,

Kathy

This new law may help homeowners who would otherwise receive a 1099.

President Bush signed into law H.R. 3648, The Mortgage Debt Relief Act of 2007, and dramatically changed the lives of homeowners across the country who are facing foreclosure, considering a short sale, negotiating a loan workout, or have done any of these since January 1, 2007. Actually it didn't pass until Dec 07 but was made retroactive to 1/1/07 and is only good on owner occupied loans.

NO more deficiency Judgments!!! Period!

I really appreciate you both attempting to answer in such a diligent way. I have to say I've read a few of both of your posts in the forum and as usual very informative!

I however, currently am in one of the worst financial straits I've ever been in. Was it totally brought on by me? NO but the only way I could of changed the circumstances would of been to relocate to where I could make the income I was making here where I live. And my hubby refuses to relocate regardless. And my four kids are my world so there u are.

So now I'm flat busted. Have the residential side down alot with alot to learn. But just trying to figure out if I was on the right track as far as commercial properties go.

I would assume the seller would take somewhat of a discount on this property as I spoke with the agent earlier. He did say it has a $1.6m assumable mortgage on it. But with my credit now I know I have no hope for at least two years after I make the hardest decision I've been trying to avoid for a few years by filing a chp 7 now.

I'm stuck in cross hairs though as well. While I know more than others about how banks work I'm not adept enough I've always felt to do my own purchases. But since I've come back here and the site has grown with the knowledge base of members it definitely helps! But I've always been scared in getting in over my head. How stupid is that? I still ended up over my head by sititing and watching everyone else make the big $$$.