All Forum Posts by: Ron S.

Why would you care who is behind your lien? You have a bigger pool of potential allies if your borrower defaults, meaning, they may want to step up and negotiate to pay you off so they don't get wiped out. If the borrower defaults on them, they can foreclose but it would be subject to your lien.

You don't "handle" the first position. You record your lien (Without committing fraud by recording a false document) and then forget about them (The lienholder). If your borrower defaults on them, the senior lien holder will notify you if you properly recorded your lien. If they don't and you did your recording properly, they may have a defective foreclosure and your lien may survive.

You don't handle subordinate lien holders either outside of noticing them if you foreclose. 

Your first question is a valid question. The type of collateral matters in a default. It's not that its harder to foreclose, you just need to make sure if/when you do foreclose that you follow the procedures for a primary. Some procedures are state specific and some are federal but in general, there are more steps foreclosing on an owner occupied first lien position than others.

 What they owe is not relevant to what to offer. There are basically two bid amounts(Tiered bidding not withstanding) that are established in a foreclosure auction. The first bid you might see is an opening/starting bid that is equal to total debt. That is the only time what is owed comes in to play. If the total debt owed is less than fair market value, the auctioneer will start with that bid and not go a dime over, and still, its not relevant to what is offered. The second bid strategy is one that is a calculation by the lender/servicer that hopes to achieve the least loss amount. Each lender has their own formular but all basically, they calculate a percentage of fair market value that they would hope to achieve, less than the amount owed and will start and stop at that amount (usually), and will hope that any 3rd party bidder raises the final bid to the total debt. 

Value is more important that anything else. What is owed should not be a factor in your strategy. What Caleb stated stands.

Don't learn from these people. You'll learn quickly that you wasted your money on a data aggregator. They'll put some numbers on a spreadsheet and tell you they have the greatest thing since sliced bread to sell you even though all the foreclosure data you could want is yours for free and all you have to do is go to whatever the local paper (in print or on line) in the public notice section and look.

Depending on the state, you would need to have cash in hand (cashier's checks) at the time of the auction. Regardless of the state, you will need cash quickly if not at the time of the auction. You can use any lender in the world you want to use but getting one to cut you a cashier's check made out to the foreclosure trustee/auctioneer, withouth having a lien on the subject collateral at the time of the check cutting, will be next to impossible.

Most actual for profit loan servicers aren't' going to deal with mom and pop investors. They service for institutional investors and/or GSE's. A simple search for "Mortgage - Loan - Servicing - Companies" will take you a long way on the start of that endeavor to find one. They are out there but will be prohibitively expensive for a onesy twosy type of investor. I'm sure there are many on this forum that can give some recommendations though. 

To your question, Dovenmuehle is a national servicer and subservicer. Specialized Loan Servicing, Mr. Cooper, Shellpoint, Carrington, and the list goes on and on and on. 

The "mortgage holder" is never going to give consent. A), you aren't going to get to them but B), assuming somehow you do get to them, is just going to give them the HeadsUp to accelerate the loan when the transaction closes. It doesn't matter how well you document your transaction. Subject to is in violation of the terms of the note and DOT.

Just do an assumption instead of trying to smoke and mirror a subject to into legitimacy or at the very least, keep the seller on the tax roll and title and insurance so you don't' trigger the Due on Sale.

You would be responsible for any line in front of the foreclosure. Any lien recorded after the lender's lien is wiped out. The exception would be IRS liens and/or tax liens. The IRS liens will sunset if not exercised but the tax liens will stay.  It's doubtful a divorce judgment would be in front of the lender's lien but not impossible.

That would be called a credit report and for your purposes, there is no such list. Anyone telling you there is, is either lying to you or, obtaining nonpublic information without the authority to do so.

On the FIRST one - Correct. No lender is going to talk to you. They'll refer you to the listing agent. Yes, there will be people that will tell you they deal directly with the lender/asset manager all the time. I would say A) they are not telling the truth or B) its such a small mom and pop one branch bank that they don't care about the negative implications of dealing direct with the buyer.

On the SECOND one - the foreclosure is already on their credit report (If the lender reports to the bureaus). That's never a selling argument. Even if the foreclosure never goes through, if you are 90+ delinquent, any future lender sees that as a foreclosure event. Sounds like its already foreclosed and in redemption which does NOT mean they can bring it back to good standing. It only means they can pay it off to redeem the property within that period and yes, it also means they can keep the home with a foreclosure on their credit report. It may update to say redeemed but the derog is still there. Again, that's not a selling point and trying to say you'll save someone's credit could put you into the world of foreclosure counseling and that could put you into legal hot water in many states if you aren't license or otherwise approved to give counseling.

 You must have been a guru...about 12 years ago. That outdated business model no longer works but good luck to you.

A cosigner isn't going to help and neither is a 603 FICO. You wouldn't be on the loan with that credit score and at that loan amount, with that score, i don't see any financial institution that would be interested.