[...] Mortgage Professionals. Information and resources for Residential, Commercial and Investor Mortgages in Canada. Refinancing and renewing, mortgage backed lines of credit. Mortgages for first time home buyers, new Canadians, … Over 3000 respondents were polled last month as part of the survey, which was headed by real estate and investing training services firm Tigrent Inc. It also found that 77% of Canadians said they were willing to make short-term sacrifices … [...]

The last thing I want to do is get into a debate with a few of the people posting on this thread but I’ve seen some interviews on youtube of Trump and he is the wrong guy. Now a lot of people liked some of his staments a few weeks back, after listening to a interview of his with Laura Ingram I thought he might be the guy. I don’t watch TV or pay attention to celebrates, I did read a book of trumps on real estate investing and enjoyed it. I had no idea he was as popular as he is, never watched his show.

[...] unknown wrote an interesting post today onReal Estate Investing for Newbies « 4clicksHere’s a quick excerptI found an article that deals with some of the more basic concepts for beginning real estate investors… check it out at the following link… Real Estate Investing for Newbies For more reading on the basics, click on the following… … [...]

When a property gets foreclosed on, and it's the first lien holder that is doing the foreclosing, then the second and third and fourth (etc.) will get wiped out at the foreclosure auction. What an investor will do is to buy/tie up the property from the defaulting owner and see if he can discount the first and second. The second will most likely agree to a small amount (usually 7-10 percent) because they will lose everything once the property gets foreclosed on. The first will usually accept a 20 percent hit.

Now what you quoted is that the second note holder was stating that he will own the property by buying it from the person in default and take over the first position's loan payments and make it current. Therefore, he is not interested in selling his note to the investors. The investors in that example were idiots for not controling the property first or the owner didn't want to sell. The investors were hoping to buy the second note at a discount and bid at the auction and own the property with at least 15 k equity plus whatever the homeowner had in equity.

You can buy any note by approaching the lending institution that holds the note and making an offer to buy it. You will need cash to do so.

Also, to clear up the quoted reference, you can purchase property "subject to" existing liens/loans. Taking property "subject to" means that you will take over the payments, but the old owner is still responsible for the loan(s). So if you stop paying the mortgage/trust deed, the lending institution will go after the old owner and start foreclosing on the property. Buying property "subject to" existing loans is one way where someone with no money and/or credit can get into a home and own it. The second note holder was buying the property from the defaulting owner using the "subject to" clause.

I either confused you or helped you. Either way, I just saved you hundreds of dollars in late night real estate infomercials!

E-mail me if you have any questions.

Regards

use the "Other" category