Buying NOTES

[hardtoremember]

I am looking for someone who can point me the right direction on buying NOTES from lenders.

I am somewhat familiar with the well known process similar to what Donna Bauer teaches/sells... What I am looking for is an alternative (not very well known) way of getting into properties at just a few pennies to the dollar. I am certain this can be done as I have met two people who do this for a living. Of course they were not very forth coming of thier process.

I will give an example of what one of them did (I would like to repeat this process if I can for trying buy up and get into a more comfortable home for my family).

There is a home across the street from me that was going into foreclosure, this person contacted the lender and was able to buy the two notes on the home (first note was 80k and second note 30k) He purchased the first NOTE for 7k, and the second for 3k. He then resold the home two days later for 75k (nice profit huh?) This was the second time in 6 months I had heard of this being done and described by the person who did it (they did not know each other and were in different area's of the country) I have approached old school realtors who have said it can be done... but it is a very specific process, and you need to know your stuff... I can only get a LITTLE information about it. I am looking for complete information about this. If anyone can point me the right direction in this PLEASE email me or pm me as soon as possible. My email is jp1@hushmail.com. I would be extremely greatful to anyone who can help me get this information as I am self employed and my business had taken a dump and I am trying to create a new income for my family. I am willing to offer whoever teaches me this method a certain percentage of all my profits for one year in payment... I know that may not seem too much incentive, so maybe out of the kindness in your heart you will take my offer and offer to teach as well.... thanks for your time.

HTR

[AlabamaRealtor]

There is a home across the street from me that was going into foreclosure, this person contacted the lender and was able to buy the two notes on the home (first note was 80k and second note 30k) He purchased the first NOTE for 7k, and the second for 3k. He then resold the home two days later for 75k (nice profit huh?) HTR

This did not happen - I don't care what you were told. Quit dreaming. The lender could have easily forclosed and then sold the home themselves for the 75K. Sorry.

[Thesa]

I believe this would be agains the truth and lending laws. Even if you are foreclosed on the lender must at the least auction the property - they can not sell the lote worth $110k without at least trying to get a reasonable dollar amount.

I have clients that buy a lot of foreclosed properties... typically we can get a property cheap only if the party that lost the property purchased 5 years ago or more. Otherwise the borrower had too high of a loan amount to make it worth our time.

The properties that do not sell are usually bought back by the lender then put on the market at a low end price but not a give away.

[hardtoremember]

This did not happen - I don't care what you were told. Quit dreaming. The lender could have easily forclosed and then sold the home themselves for the 75K. Sorry.

The lender can EASILY tell the ENTIRE truth 'full disclosure' about what it is 'lending' (nothing) as the NOTE that the BUYER signs is the actual item of value... NOT what the so called 'lender' allegedly 'qualified' you for (BUT THEY DON'T). I woke up from the dream years ago, most Americans are completely unaware of what they are signing on a daily basis... so your remark, and tone of it, only confirm the ignorance of the 'average American' in their own 'system'. I have seen this with my own eyes, I did not ask you to believe me, I am asking if the few that know this method (hoping one looked on this forum) could point me in the right direction.

One last thought.... if I remember right.... the 'average' person in the time of the Wright brothers... considered them 'dreamers' and those who are afraid of those who did not CONFORM would only throw negative ignorance at them.... next time your flying across an ocean... dont dream.... you may actually come up with something useful to say/do.

HTR

[hardtoremember]

I believe this would be agains the truth and lending laws. Even if you are foreclosed on the lender must at the least auction the property - they can not sell the lote worth $110k without at least trying to get a reasonable dollar amount.

I have clients that buy a lot of foreclosed properties... typically we can get a property cheap only if the party that lost the property purchased 5 years ago or more. Otherwise the borrower had too high of a loan amount to make it worth our time.

The properties that do not sell are usually bought back by the lender then put on the market at a low end price but not a give away.

Thank you for your reply. However, truth in lending laws are broke each and every day by lenders... most people do not know what the truth in lending laws are. Lenders are fined each and every day for breaking these laws, but the fines are pretty minimal compared to what they are making. There is no loss to the lender if the buyer has gone into foreclosure as many people think, the lender has already got their money by way of turning the note into money (9 times the amount), which in turn they gave right back to the buyer, then charged him/her interest on top of it. The lender never lost any money at all, this is why I know this is possible, they also get many so called tax right offs and loss right offs by showing that they were unable to get more money out of the buyer.

Again, I am sure this is there... as pointed out in my first post and maybe not worded right... it is not on the surface... it is not easy to see... this does not mean it does not happen... it certainly does... I think those placed in the right area of that business are fully aware of how it works, I just hope that I can find it someday. When I do... I will certainly post here about it... AND how to do it... I wont create some bogus overcharging seminar...I promise.

HTR

[lobabz2]

I am trying to find out these things to i have some literature on the way maybe it will help when i get it cause people are doing things that not just every body knows whether its legal or not ???? only if you dont get caught probably. I would imagine you have to know some one willing to work with you on the sly.

[Ryan Ward]

If I correctly understand you - First you must find people who have owned their home for a long time. Let's say 10 years ago they paid 100k for a house. Now they owe 75k and the house is worth 200k. (large group of people in this category) Next you have to find people in this category who for whatever reason have fallen behind in their payments and are facing potential foreclosure. (about 1-3% of the people in the last category) From this dwindling group of folks you now have to find them. (not as easy as you might think). These people can then sell you their house for the payoff PLUS whatever they owe in arrears. In this scenario of the 100k house, you would pay about 80k for a 200k house. In other terms you could say that you bought a house at forty cents on the dollar. The trick is being able to find these people. You can subscribe to foreclosure listings and find them on the internet. Your best bet is to find a Realtor in your area who specifically caters to this niche.

Hope that helps.

If this is not what you mean, then what these people are telling you may be the purchase of tax liens on properties. This is a whole other animal and the little guy has very little shot of making a living by doing this. At least in Georgia as large investor groups with lots of capital scoop them up quickly.