Has anyone out there ever bought a non performing mortgage note from a bank and then had to foreclose?

I would like to speak to someone with experience buying non performing notes. Once the note is bought, how do you go about foreclosing, how long does it take and how expensive is it?
In Buying Property - Asked by Gregory C. - Jul 23, 2011
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Answer(s)

craig m.
Property/Asset Manager
Memphis, TN

I have, and it worked out well for me... Last one I did.. was a shopping center... which I wanted to own anyway... I purchased the note... then foreclosed.... I then purchased the property on the courthouse steps... from myself as the note holder... I then had clear title to the property and the former owner by law still owned the difference between what it brought on the courthouse steps and what was owed on the original note... not a lot of chance collecting it... but you can show that as an asset on your books... It could hold value... maybe not... Most of the time leases become void at the time of foreclosure if there are in in place... alot depends on how well the original loan documents were done and secured... recourse is /should be spelled out in those documents... as well as local laws...
good luck

Jul 24, 2011
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Eric V.
Broker/Agent
Corona Del Mar, CA

The process is mostly spelled out by Craig M. Depending on the size of the property as well. We've broker note sales with the intention to foreclose on properties, thereby purchasing the asset at a below market value with the "upside/value add" metality. Keep in mind there are foreclosure fees/costs for attorneys etc. Most foreclosures we've found to cost us around $200k for most of our shopping centers $5MM and up to $25MM.

Jul 28, 2011
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Debbie H.
Broker/Agent
Loma Linda, CA

I had a listing in which the first was bought by a private investor. We were short selling (on the second lien) and the new note holder literally owned the note for a month+ when we closed the deal. The private investor walked away with a nice amount of money...

Sep 3, 2011
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