All Forum Posts by: Ron S.

 excellent news to hear. Everyone gave you that advice...go to the sale and buy it. Glad you listened and benefited from it.

You approach the listing agent on a preforclosure the same way you approach an agent on an REO or open market transaction. If emailing them, i'd start with taking your caps off.

What they owe on the property is not relevant to you or your buyer. That's for the selling agent to figure out how to make work. It may involve a short sale, it may involve you looking for other properties for your buyer.

A short sale in 2023? Wow...

I'm a $10 billion dollar bank and haven't done a short sale in 8 years.

All things being equal and understanding there are huge differences between one guaranty and another guarantee, there are distinct differences between being a guarantor and a borrower. A borrower is always liable. A guarantor is only liable upon the borrower's default. The borrower is typically going to be reported to the bureaus in the event of default (assuming its a residential loan), whereas a guarantor isn't. In the event of default, lender typically pursues the borrower and in residential real estate, usually under the power of sale clause (Assuming its a non judicial state). If pursuing a guarantor, you would typically have to first prove the default of the borrower and then prove the liability of the guarantor, which would typically involve a court process. 

One big one is that some states that are single action (Non deficiency), allow the lender to pursue the guarantor for deficiency in the event of default and subsequent loss whereas they don't (can't) pursue the borrower.

I'm not giving legal advice, just exhaling my bag of wind two cents.

 if the mortgagee and the llc owner are the same, i don't see a lender having an issue with a title transfer. I wouldn't have an issue with it. In fact, i may not have a say so as a lender if the transfer is purely for estate planning purposes.

 Absolutely agreed!

Maybe I'm just not smart but a foreclosure is a foreclosure. An agency foreclosure is the same as a non agency foreclosure. A commercial foreclosure is the same as a residential foreclosure (Absent the hoops you have to jump through extra on a residential foreclosure). The foreclosing entity doesn't care if its a municipal building or a log cabin in the woods. The foreclosure process is the same. The responsibilities are the same. a deed in lieu is the same.

The loss mitigation process is the only difference. What will a servicer/lender do before going to foreclosure. What can the lender do in a workout on a non agency loan versus agency. All of these "differences" are pre foreclosure.

One specific answer, bids are state dependent, and not different between commercial versus residential. If the state rule says cash, its cash (it's usually cash).

lenders aren't allowed to profit from foreclosures. They can only go to total debt (The amount owed). Any surplus goes to the borrower. The only way a lender "profits" is selling the property after foreclosrue sale. That's callled an REO. Lenders can profit from REO if they sell it for more than they lent on it.

I must be missing something. it was my understanding that the lender chooses the NAICS code in a loan application or at least, they confirm whatever the code stated is.

 so then you aren't short, you just don't want to use your funds. You should have stated that in your original post. I don't see a legit hard money guy touching that without running up to the point of usury to make it worth his/her effort. and if someone would, do you really want to spend $20K to borrower $80K?

if you want to know the chain of ownership, when loans were taken out, with whom, for how much, and sometimes see the recorded documents, use titltpro247.com. This is for property data, not people data but, it gives you all the people involved with the property at one time or another. its not free but, its what lenders use when they are looking for people and property information. You could also use LexisNexis but good luck getting the approval to use their data as they are mostly for institutional/law enforcement use.

There isn't any way you are going to get information for the administrator of an estate for a deceased person unless there is a court document associated with that.