All Forum Posts by: Bruce Lynn

Myth revisited.... unless perhaps you are Blackstone, Goldman Sachs or a big hedge fund.

I'm hearing now they're not waiting for foreclosure, but trying to beat that with buying bulk non-performing, trying to rework the loans and if that can't happen, then taking the foreclosure to a subsidiary for rental portfolio.

Tell us please what you have seen.

This question has been asked a number of different times in a number of different ways.

You might search to see what others have said.

Here is one link:

https://www.biggerpockets.com/forums/20/topics/437230-hud-owner-occupied-bid-period-does-joint-ownership-qualify

@January Johnson  I have no idea about laws in Florida, but buying "pre-foreclosure" has been a common investment strategy.  You see the ones on the list, you see how much is owed, if there is a big enough spread you make offers and do your due diligence during the option period.   You can help everyone...If the house in question is really worth $100K, then you probably need to offer more than the $38,000.  Offer $45,000 or $50,000.  That gives the owner some money to move, some money for rent, etc.   Chances are a pitch that I'll save you from foreclosure alone is NOT going to work.  These typically aren't ready home buyers....out looking for their next property....their credit already shot if they aren't paying the mortgage, etc.  So you need to give them some kind of real incentive to sell.

If it is an inherited house the original loan may not be in the name of the seller, but the deceased where credit is no longer an issue....so the incentive for the seller is some cash and maybe quick cash....chance for orderly move, chance to have money for a deposit or double deposit or triple deposit on a new place...money to pay rent for 2-3 months at the new place etc.   

You still have plenty of equity capture that would make most investors happy.

You pay off the lender, who now doesn't have to loose money on a foreclosed home and gets the bad debt off their books.

Everyone should be happy.

I personally think you have to be in the mindset of helping everyone solve issues.  Maybe your attorney can help you set up a strategy to avoid getting targeted as an equity-stripper.   I can't imagine if you play fairly most of the time you're going to get prosecuted.  If you're out to take take take from everyone, like too many investors, yes, then perhaps you get targeted....there always seems to be some bad players, that get the laws changed for everyone.

I can't imagine you present your case as....hey this guy gets nothing in 3 days.  I stepped in and paid off the loan, helping the lender out.  I kept a foreclosure off his name/family name.  I paid him $5000 cash and let him get all his stuff out, and helped him find a new place to live.   Here are pictures of the ugly house before, here are pictures of the beautiful house now.  Value then was x, value y is now contributing an additional x$ to our local taxing entities and schools.  Here is the time I spent doing this, here are the costs I incurred, Here are pictures of the new family I helped get in an affordable home.   Here's a picture of the new loan officer who made a few dollars, here is a picture of the contractor who made a few dollars, here's a picture of the landscaper who made a few dollars. Here's a picture of a local teacher who is paid by the tax dollars generated and PAID.  

Does a judge or jury prosecute you for equity stripping?....could happen....but then they have to prove you are an opportunist evil investor out to screw everyone.

Since you are an agent, you might run it all past your broker to see what they say.

You probably need more than a death certificate.   Call them and ask them what you need?

Maybe a probated will or estate showing who she left the land to.   Then you would need to be that person in most cases.   You also perhaps could get the executor of the estate to assign you ownership of the property....then it would be up to you to try to redeem.

https://www.texasobserver.org/property-tax-loans-p...

http://occc.texas.gov/industry/property-tax-lender...

The property tax loan is in 1st position.

I see alot of them out there, but not sure how you learn how to do it, other than perhaps go to work for one of them.

 BNTof Texas

They did one for me, but it was expensive and service was not what I expected.

Several others have told me they can do it as long as redemption period has passed, but I have not used any yet that indicated this.

Might try Mike Wallace at Fair Texas Title....8201 Preston Road, Suite 160

Dallas, TX 75225

@jay  I'm in Texas and looking for Texas.

@Steven Payne have you run across one.

Can anyone point me towards a good resource for a form to purchase right of redemption?

By the way in Texas I don't think use Contract for Deed any more....this was a commonly used document years ago for investors.  Now Austin has imposed rules that are tough for investors to follow, so I would think most people don't use it any more.  I would think most board certified real estate attorneys would tell you don't use it.

There are some differences as well in the instruments.....

In Texas the deed goes in the name of the buyer with Deed of Trust...so they have the Deed in their name and the Deed of Trust outlines the terms of the mortgage and how they can loose the property.

With contract for deed, the deed stays in the name of the seller and transfers when the contract is complete....ie mortgage is paid off.

I always think....of the question like this.....what would a judge or jury think?....how would they decide?

If you buy it, but don't live there and have a primary residence somewhere else...my thought would be you are not an owner occupant.  If you son is on the deed, but he did not get a loan or pay for it, then he is potentially a tenant, now a real owner occupant.

Who do the roommates pay rent to....your son or someone else?

Who's name is on the mortgage.

If you pay cash, where did the cash come from....who's account, who's income.

Some people think these deals are anonymous....maybe they are...I've never heard of anyone getting busted...but people do watch...you never know who else is bidding....losers can get pissed off, figure it out and turn you in.

To me it's not worth rolling the dice on....you're probably not getting much of a discount and you're trying to skirt the rules...you're messing with the federal government.... every now and then someone comes along and wants to prove a point, some new assistant prosecutor....maybe they are the ones that lost the deal or another similar deal....and then think....hmmm....I could solve this problem of non-owner occupants bidding during the exclusive period.....it would cost you way way way more money in legal fees defending prosecution or paying fines than to me trying to save a few bucks on rent money would be worth.  I think you just never know who's toes you are stepping on in situations like this and you don't probably want to be made an example of by the feds.