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Avoid Foreclosure!
Undocumented Foreclosure secret
Home | Loans we do | Chapter 13 Loans

This is how foreclosure investors make money by taking advantage of the situation.

Bob owns a property worth $100,000.

Bank holds a 1st mortgage $60,000

Bob is ten months behind in payments @ 500/ month P&I = $5,000.

Sam holds a second mortgage $10,000.

This is one way an investor can take advantage of this situation.

The investor would contact Sam (the second mortgage holder) to negotiate to purchase the $10,000 dollar 2nd mortgage from Sam for a discounted price of $1,000 dollars. This discount will happen by knowing this rule.(Endangered collateral)

An ASSIGNMENT OF MORTGAGE will be prepared by a title company or an attorney.

The investor is now the second mortgage holder.

Now that the investor has some control in the property this can be done.

Negotiate with and buy the home from Bob (the owner).

1. Reinstate the 1st mortgage ($5,000 plus all expenses).

2. Satisfy the 2nd mortgage (satisfaction of mortgage) is prepared by a title company, or an Attorney.

3. The investor has full control of the home.

The investor could use this technique.

Reinstate the 1st mortgage, and foreclosure on the second mortgage.

Possibility #1. Bob (the owner) reinstates the second mortgage he pays $5,000 plus the foreclosure expenses.

The investor is holding a $10,000 dollar second mortgage for witch he, or she paid $1,000 dollars for.

The investor will collect a monthly payment as income, or discount the mortgage, and sell it for a profit.

Possibility #2. Bob (the owner) gives the investor a deed in lieu of foreclosure, the investor owns the home.

Possibility #3. The property goes to auction.

If no one else bids the investor will own the home.

If anyone else bids the investor will receive cash.

This is inside information that foreclosure investors pray that all homeowners, and private mortgage holders do not find out.

If Bob the owner had this knowledge he could have saved his home from this kind of action, also if Sam the second mortgage holder had this knowledge he cloud have saved his investment.

I am dedicated in teaching homeowners how not to become a victim and loose their home investment just because of the lack of knowledge about foreclosure.

Avoid Foreclosure!

The equity thief