All Forum Posts by: Wayne Brooks

@steve babiak
"IRS would be in line to get paid behind the mortgage in that situation, the lien is effectively extinguished. But IRS ALWAYS has 120 days right of redemption."
Yes sir. But, they would have to reimburse the purchase price, carrying costs, etc. I've been told there would have to be tremendous equity, and in the Florida market (S. Fl anyway) that won't happen at the auction.

The bank will Not do a subject to, even if there had never been any deliquency. A subject to gets done, without the bank's knowledge. They are not totally stupid (not 100% of the time anyway). They will probably know there's enough equity to come out whole, or close to whole.
The "owner getting a letter from an attorney" does change any banking/mortgage laws.
Best bet, spend $200 for a half hour with a real estate attorney, and spend $80 for a title search. Mysteries will be solved.

The Final Judgement, with an amount will be filed in the county Clerk of Court's office. Search the owner's name in Official Records. No trustee/intent to cure in Florida. Best bet is at the auction, depending on the competition. With that kind of equity, the IRS will want most/all of their money to release on a straight purchase. Assuming IRS lien was after mortgage origination, it gets wiped out at foreclosure auction. Check for back taxes, open permits, code violations, HOA dues, etc. that would survive the auction sale, and make sure the foreclosing bank is the 1st mtg.

There is no predatory lending here. The "predators" in this scenario would be your partners and/or you, as a knowing "straw buyer". Maybe you got taken for a ride, but not by the bank.

There's a relationship there with your parents. It's not the only short sale in the world, find another one. Yes, in Hialeah he definitely will be able to find someone to do a lease back.

"and not be afraid to do something different". Doing something different is great, if it provides a Better service. Being different, while attempting to avoid the necessary homework, and proving to be of no value and generally being a waste of time-sounds like a hell of a biz model!

Tax records ans MLS are not related. Property appraisers and tax records can be months behind. Look at the actual foreclosure case file, in person if you need to. If the bank got it, have the realtor set up an auto search so you know when that REO hites the market.

Yep.

Chris,

Honestly no. I don't deal with a lot of REO's. I recently was tracking one down for a buyer that was FNMA. Most of my personal investments are buy/fix/flip, or buy/flip. I have bid on some lower end REO's, but haven't bought any.
But, for a fix/flip I don't see the 90 days as much of an issue. You'll usually have 90 days in rehabbing, marketing and getting to a close. And I'm not positive, but I think the 120% rule within 90 days applies only "without substantial improvements". I'm sure others here know this area better than me.

David C,
Chris is right, the restriction is for financing the property for More Than 120% of purchase price within 90 days. For the exact language, you can go to homepath.com and look at the Offer documents and addendums.