All Forum Posts by: Hanna Brown

@Jay Hinrichs  You mentioned Oregon and WA made foreclosure rescue lease backs totally illegal. Is this also the case when purchasing rights of redemption post-auction? Is it legal to offer to rent the property back to the homeowner who already lost their home to foreclosure when negotiating the redemption rights purchase?

@Jay Hinrichs If the bidder at the auction pays cash for keys to get the homeowner out, does the person redeeming from the owner position (exercising rights of redemption w/in 180 days) have to reimburse them for those costs they paid to get the homeowner out?

Hello All! I am interested in acquiring pre foreclosures to buy and hold as rental properties. I am not a licensed RE agent or attorney, just an investor looking to increase my portfolio holdings. My original plan was to door-knock at potential homes that have received NODs and make cash offers to the owners.

After reviewing some previous BP threads, it seems this is rather tricky legally, since I am not a Foreclosure Consultant. Is there a way for a person like me to legally acquire property in this manner? I would plan to hold the properties longer than 24 months, so as to avoid the 80% equity share. I would avoid renting to the owners in default, since I learned that is also legally fraught. What other considerations are there in this strategy? Is it potentially feasible?  Anybody successfully pulled this off? Would love to hear about your experiences and insights.

We are considering purchasing a property at a Trustee Sale that is occupied by the owner being foreclosed on. Does the typical court eviction filing work in this case, since we have not established a landlord/tenant relationship?

What is the court process of legally removing an owner whose interests have been foreclosed on? Any advice would be helpful to us at this stage in our research. Thanks so much!

My husband and I went back and forth about that issue for years. It's a really hard call. You will almost certainly be taking a standard of living increase by doing that (tied up capital in home, increased property taxes, insurance, landscaping, the expense of moving/furnishing etc) It will slow your rate of growth for sure. The longer you can hold out, the better from a wealth point of view. Whether of not it's worth it is a personal call, though. Your kids will only be young once, so that's certainly something you'll have to weigh.

After acquiring 4 rentals, hubby and I purchased a foreclosure home and fixed it up to live in. We were in no rush to leave our duplex, but rather made lots of lowball offers, trying not become attached to any one home. We had a list of non-negotiables, but price was the most important consideration. The home we ended up buying was the was the best of both worlds. Lots of equity on the buy and exactly what we were looking for in terms of layout/space/acreage/property age. I don't regret it for a second. We have three young toddlers, and they will grow up with memories on our acreage. That being said, we are not stretched financially thin, and it wouldn't be worth it to me if we were. I'd rather live in a small home than feel stressed financially.

A lot of it has to do with what you are comfortable with financially, what your income situation looks like, and what your long term objectives are. These will look different for everyone. Good luck! :)

Thanks! Does that mean even after the 120 day IRS redemptive period, IRS liens remain with the property and must be settled at sale?

"...Would anyone be willing to sell their home and get paid in bitcoin"

No way. I'm a big fan of the future of cryptocurrency and their potential in the marketplace, but at this point, they are FAR too volatile. Bitcoin has gone up by more than double just in the last two weeks. The exchanges that deal in Bitcoin are not FDIC insuired and have a history of hacking. Many are very shady and will freeze funds/have giant data leaks. No way would I sell my home for Bitcoin, at least not at this point. Way too much risk. 

Husband and I had a similar situation recently, and decided to sell.

For us, not only did it not cash flow very well, but it had significantly appreciated since we bought it. The IRS has special laws for homeowners selling their primary residence, that allow them to keep the gain on their property without paying tax on it.  This was a huge incentive for us. If we had converted the home as a rental, we would not have been able to take the appreciation tax-free. I strongly recommend looking into the $250,000/$500,000 Home Sale Tax Exclusion to see if you qualify. You likely do. If your home has substantial appreciation, it makes a lot of sense to take all the gains free of tax. 

Thank you for insight, Jay. I recently passed up on a judicial foreclosure in part due to an outstanding  senior deferral and IRS liens. That's helpful information. 

Do you know if the senior deferral is sure to stay, or just sometimes? Any luck with negotiating deferral down after purchase? Do you have any tips in general for negotiating with lien holders (property tax/cities utilities/IRS) after purchase? 

Anyone have any advice on how to go about buying redemption rights in Oregon? If you have insight into any of the below questions, please comment!

1) What has been effective in terms of cash for keys? What do you typically offer? How do you go about approaching the residents without threatening them? Are you often successful? Have you ever felt endangered approaching residents at the door?

2) If you get the rights via a bargain and sale deed, recorded with the county after winning the auction, what is the next step, specifically? How do you go about petitioning a judge to grant you an early title? Anyone have a lawyer they recommend for that, or is it something I can file myself? I am assuming you wait two months, then petition?

3) I have read that some people buy the rights before bidding at auction. I am curious for those who do, do you record those rights right away with the county, or do you wait? What are the risks or recording before? Is it possible to inherit the junior liens by mistake if you do it this way instead of waiting until after the auction?

I am interested in any and all insights you might have into this process, and also interested in hearing about your experiences attempting to purchase/redeem redemption rights in Oregon.