Hello all,
I am a new REI. I have been studying the subject on and off for about 5 years now. I have purchased several books and study packages. Including Calton Sheets. I also read several threads on this forum. Today, I won my first bid at a foreclosure auction. I’m one for one. And that’s scary! Read below and please offer any advice you may have.
I bidded on a property that foreclosed on the secong mortgage subject to the first. The first was estimated at about $64,000. I won it with only $22,000. Only $2000 over the starting bid. The ARV of the property is estimated at $140,000. I was able to see the property inside and out because tennants occupy it. No major repairs needed. I have a private investor/lender who has previously pledged
$120,000 balloon loan with interest only for 5 years. private investor seems flexible on terms. Tenants are paying $875.00.
Those are the facts. The Trustee said there will be a 40-50 day period
to ratify the deal then we close 10 days later.
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What should I be worried about?
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How can I find out who the first DOT is with?
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Can the current owner/landlord null and void this whole deal by paying off the second.
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The Trustee said legally I can possess the property but I shouldn’t spend money on it. I told him it’s being rented. He said I can’t start collecting rent yet. Why is he saying all of this, what can the current owner do to undo my aquisition.
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will I be responsible for any interest on either the first or the second between now and closing?
Thanks in advance.