All Forum Posts by: Mark Gallagher

@Christopher Dunson

As @James Masotti has said, the paperwork is easy. I'm concerned about the scenario you describe. How are they getting funds from the other property in less than 2 weeks? 

@Mario F.

Your brother is wrong. 

@Christopher Winkler

We do have a BPO from a local broker. That being said, I was never "hot and heavy" for this one, basically paying for some more education in the note space. Appreciate the feedback. 

@Steve Hodgdon

@Jay Hinrichs

@Account Closed

Sorry gents I apologize I must not have stated my purpose clearly. I already know and have confirmed with counsel that the child support lien will go away, but only if it goes through foreclosure. I was more so trying to clarify the only logical exit strategy here has to be foreclosing. It wouldn't seem to make sense to try and get this reperforming when there is a $75K lien. The borrower would keep a $40K house but still have a $75K lien, essentially making $115K worth of debt against a $40K house. Or would the borrower not take the $75K lien into consideration because they need to pay that no matter what and getting their mortgage reperforming would keep them in their own house, and cheaper than renting. 

@Roman M.

No matter what, my exit strategy would have to be full foreclosure, do you agree?

@Account Closed

I have not purchased the note. 

Also, I realized after writing the post that doing a DIL will not wipe out the other judgements so it seems like a full foreclosure would be needed no matter what here.

Would love if some well-educated note investors could chime in on this note scenario due to a large open child support lien. I am not a well-educated note investor, but I have purchased a NPN before and run it through foreclosure, mainly for learning. I'd like to get deeper into the space, and this is one I have been watching for a bit. I've pulled a BPO and a title search, and here are the findings:

Currently occupied, presumably by owner. Value of the subject in average condition is $40,000. 

Owner purchased the property 5/1985

Husband was added to the deed 7/2013

Open Mortgage 1 (note for sale) 11/1996 for $39,600

-was assigned 5/2005 to Chase, assigned 11/2011 to current seller

Open Mortgage 2 3/1999 for $5,902

Open Judgement 1 9/2004 for $3,459 (store credit)

Open Judgement 2 2/2008 - foreclosure proceedings by Chase

Open Judgement 3 - child support against husband for $75,370

Open Taxes 2015 - $1517

Open Taxes 2016 - $2073

My concerns are as follows: First and foremost how do I know this child support lien is in fact the same person? Second, this lien would be extinguished via foreclosure but that means reperformance is not really possible because it would be reperforming with a massive lien that's double the value of the home. An exit strategy of deed in lieu of foreclosure, and then putting the home back solely in the wife's name seems like an option? Or simply do a deed in lieu of foreclosure and wholesale the property, but they've been there for a long time and likely won't give it up easily, and would need a large amount of cash for keys to get out. 

The note is for sale for $15,000. Thanks in advance for your input! 

@Julian Perez

It's all about screening tenants. All of our rentals in Allentown pay religiously on the due date, some by direct deposit.