All Forum Posts by: Pete Storseth

@Chad Urbshott

I agree that an attorney is gonna be needed. I'm trying to understand the difference between buying from the lender vs buying the house.

If I buy from the lender, I am still buying the house, right? The lender has all the equity. I had thought that I would buy the property same as ever. Title company would do due diligence on title search, etc. I dont understand how there's a risk of buying and have someone else somehow attached to the note besides the borrower and lender

The "note" is 226k. The borrower has no equity. If I could buy for 202 and they accepted it would be a great flip. It was completely rehabbed a year ago, with a single tenant since. A simple cleanup shouldnt cost much, and I should be able to sell for up to 290k.

@Chad Urbshott

Subject to wouldn't make sense. The loan between lender and borrower is interest only at 10% and reached its maturity date, but not paid up to date. I would be buying zero equity.

Therefore the idea of buying seller financing from the lender could have been an option, but the lender is more interested in being rid of it. Again I would have no equity.

The reason for starting this thread is because as the lender asked for an offer

@Chad Urbshott

1. Borrower buys house as investment

2. Borrower rents house

3. Borrower refinances with new private lender, 12 month interest only @10%

4. Borrower stops making payments

5. Borrower calls me

6. I pass on deal, not a deal with his debt

7. Lender calls me, new numbers look much better.

@Chad Urbshott

The lender paid about 220k for the house put it on a 10% interest only loan to the borrower when it was refinanced.

Are you saying the note could have other people attached?

@Wayne Brooks

Not sure I understand. When I do the title search during due diligence, that would show all liens on the property, right?

@Chad Urbshott

The borrower will be very cooperative. As he is the original contact. Wouldn't the title company be sufficient for checking for other liens?

@Wayne Brooks

Understood. The buyer was my original contact that I was helping. This will save him from foreclosure and forgive 7k of debt he doesn't have. I believe he would agree

@Wayne Brooks ok thanks.

That's what I'd do in this situation if the offer is accepted.

Trying to buy the note, forgive the mortgage and flip the house. Is it just too complicated?