I have a customer that is going to be foreclosed on and I would like to buy the mortgage from the bank at a discount. I have her poa and authorization form. My question is do the banks usually sell there notes at a discount to investors and if so do I have to pay all cash or could I get a loan to buy it. I figure this way would be quicker than trying to do a short sale than purchasing the property at a closing. Thanks in advance for the help!
jkid
I don’t have a lot of experience with the more creative forms of RE investing, so I am curious. Why do you want to buy the mortgage from the lender at a discount rather than buy the house as a short sale?
i was thinking that the bank would work faster on approving this than going through the whole short sale process. i never did it but heard it done before.
You’re a little confused. Maybe I can help.
There are at least two doors into that bank. One for consumers such as your gal and one for investors such as yourself.
You’ve got the keys to the consumer’s door (the poa and authorization) but you’re attempting to go in through the investor’s door.
See the problem?
That’s a tip off you don’t know what you’re doing and won’t play well with the guy in charge of getting that loan situation squared away.
You don’t need POA’s or authorizations to buy bank loans, you need (1) cash, and (2) a relationship with that guy in charge. You build that relationship over time but there’s nothing stopping you from getting that process started with this being deal number one.
And you’re right . . . the back door avoids all that short sale nonsense and gets you to a decisionmaker who can get it done on the telephone instead of some month’s long processing arrangement.
Good luck!
Joe
Joe, your help is appreciated. just out of curiosity have you ever heard of a hard money lender providing funds for a purchase of a mortgage? thanks again!
jkid,
Why not do a sub2? Pay the mort up to date and take over payments. Is the home owner just looking to get out of it? That would save a foreclosure on their record.
Karla in Amarillo
the sub2 is what i am leaning to now. i was just hoping to create a little more equity in the property.
JoeKaiser,
I would love more information on buying default notes from lenders. Especially since the market here in DC is hot, hot. I see homes here going up for foreclosure all the time. Could you give a little more insight? 