b OWN IT SUBJECT TO PENDING FORECLOSURE Another alternative is to get the

B own it subject to pending foreclosure another

This preview shows page 46 - 49 out of 121 pages.

b) OWN IT SUBJECT TO PENDING FORECLOSURE Another alternative is to get the ownership to the property (get the deed) without paying off or reinstating the existing loans, subject to the foreclosure threat and its time line. It’s very important that the seller understands the risk and your plan, and agrees to it in writing. You will be disclosing to the seller up front that the only way the foreclosure will be avoided is if you find a buyer who can cure it prior to the foreclosure sale, or if you can get the lender(s) and other lien holders to work with you, accept the lower payoff (discount or short sale) and give you enough time to arrange the financing. Your exit strategies will vary depending on the amount of a discount you get, and the way you raise cash.
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Foreclosure Investing MASTERY - Manual – SECTION 1 . Copyright 2017 – 2018 © Marko Rubel MarkoRubel.com Page 47 of 121 VI. FORECLOSURE & SECURITY INSTRUMENTS Foreclosure Definitions Ø Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a piece of real property due to the owner's default on its promissory note . When the process is complete, it is typically said that "the lender has foreclosed its mortgage or lien." Ø Legal process by which a mortgagor of real property is deprived of his interest in that property due to failure to comply with terms and conditions of the mortgage. Ø The forced sale of property pledged as security for a debt that is in default. Security Instruments Promissory Note A promissory note is a contract detailing the terms of a promise by one party (the maker ) to pay a sum of money to the other (the payee ). The obligation may arise from the repayment of a loan or from another form of debt. For example, in the sale of a property, the purchase price might be a combination of an immediate cash payment and one or more promissory notes for the balance.
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Foreclosure Investing MASTERY - Manual – SECTION 1 . Copyright 2017 – 2018 © Marko Rubel MarkoRubel.com Page 48 of 121 The terms of a note typically include the principal amount , the interest rate if any, and the maturity date . Sometimes there will be provisions concerning the payee's rights in the event of a default, which may include foreclosure of the maker's interest. For loans between individuals, writing and signing a promissory note is often considered a good idea for tax and recordkeeping reasons. A promissory note differs from an IOU in that the latter is a simple acknowledgement of the existence of a debt owed, whereas a promissory note, as its name implies, contains an affirmative undertaking to pay the amount stated. You Can Sell a Note! A promissory note that meets certain conditions is a negotiable instrument governed by Article 3 of the Uniform Commercial Code.
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  • Spring '15
  • Mr. Gardner
  • Subprime mortgage crisis, short sale, Hard money lender, Hard money loan

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