How to Buy Defaulted Mortgages – Case Study: Exit Strategy Foreclosure and REO
September 1, 2008 by notebuyingprofits.com
Filed under Exiting, Real-Life Case Studies, Videos
Here is a VIDEO Note Buying Case Study for you that I shared with members of the ‘Private Access Club’ (PAC) recently.
(They get see this kind of REAL-LIFE info WEEKLY, plus an ever-growing ARCHIVE of recordings (Online Videos, MP3 Audios, iPod Video Downloads, etc.) of literally anything that took place in PAC so far…)
You can check it out yourself for a buck for 30 days for right now…)
This is a 22-minute Video Case Study of a note buying deal that I am currently doing. So this is UP-TO-DATE stuff. This note buying transaction should net me over $70,000. And believe me, there is no reason why YOU, with the right training, couldn’t do the same thing, buying defaulted mortgages.
It’s September 2008… TONS of defaulted mortgages out there, that banks want to unload!
The Exit Strategy for this one turned out to be Foreclosure & REO.
Take a look. And leave me a comment and tell me what you thought.
(Sorry, the Video misses the first couple of seconds, but it’s still easy for you to follow along…)
Hope you enjoy this ‘How to buy Defaulted Mortgages’ Case Study!
Dean, thank you for the great info but on this case I do have one question I hope you can help me understand, if you buy the first at a discount and then refi at 65%ltv base on $300k fmv but the note is what happens to the second?
Should one have the note on the second first before this type of refi?
I hope you can help
Thanks
Rosa, let me see if I understand your question properly – you’ve bought a note and you’re looking to refinance and there’s a 2nd behind the first that you’re buying. Therefore, you’re trying to find out whether and how a refi might help you when you’ve got a 2nd behind you.
You have to be careful about refi’ing with 2nds behind you. Obviously they have to get paid off, or partly paid off (depending on what they’ll accept) when you’re refinancing. So be careful to do your due diligence when you’re buying a 1st, and find out what 2nds might be behind you. Does that mean that you should always buy the 2nd as well? No. But be ready to make an offer on the 2nd in case your 1st is non-performing. It’s a way to get a good discount on the 2nd. Sometimes, however, the 2nds may play hard to get, and want to retain their ability to pursue the borrower for a deficiency judgment, and won’t sell their note to you.
There’s a strategy to deal with this – I give you a detailed case study in Step 4, Part 2 – the Triple Prong Approach on a Winona, Minnesota property, if you want the insight on how to handle this type of case.