So I am back in Texas and looking around at homes. I attended an auction today on the steps of the Ft. Worth court house because a home I am interested in (listed with a Realtor) was supposed to be auctioned. It was quite an interesting experience with the auction happening right on the steps of the County Clerks office in a very informal way.
Unfortunately the house I was interested in bidding on was never put on auction. I called the trustee of the note after the sale to ask why it was pulled and she said the owner of the home filed bankruptcy last week. That prevented the sale of the home at auction today.
So I have a new idea on how to try and leverage the current situation but not sure it's worth my time. I was thinking about contacting the owner of the mortgage note for the house and seeing if they wanted to sell the note to me. The idea would be that I could probably get a big discount from the current owner of the note and then I could attend the bankruptcy trial to make a claim on the house.
It appears the owner just got divorced and his kids recently left for college (now an empty nester). He has the house on the market and it appears he is not planning to stay in the house as he is packing things up and slowly moving out. That signals to me that he is either going to default on the note or hopes to sell it in the next few months. If I can buy the note for $.50 on the dollar and he sells the house and can pay back the note I will double my investment. If he does not find a buyer I will be first in line to take ownership of the house.
This idea is pretty aggressive and probably full of potential risk I am not thinking of. I was hoping the wise members of E-R.org can help me understand if this is a totally stupid idea or if I should spend some time to look deeper into this option? Any advice or past experience regarding similar issues is much appreciated!
Unfortunately the house I was interested in bidding on was never put on auction. I called the trustee of the note after the sale to ask why it was pulled and she said the owner of the home filed bankruptcy last week. That prevented the sale of the home at auction today.
So I have a new idea on how to try and leverage the current situation but not sure it's worth my time. I was thinking about contacting the owner of the mortgage note for the house and seeing if they wanted to sell the note to me. The idea would be that I could probably get a big discount from the current owner of the note and then I could attend the bankruptcy trial to make a claim on the house.
It appears the owner just got divorced and his kids recently left for college (now an empty nester). He has the house on the market and it appears he is not planning to stay in the house as he is packing things up and slowly moving out. That signals to me that he is either going to default on the note or hopes to sell it in the next few months. If I can buy the note for $.50 on the dollar and he sells the house and can pay back the note I will double my investment. If he does not find a buyer I will be first in line to take ownership of the house.
This idea is pretty aggressive and probably full of potential risk I am not thinking of. I was hoping the wise members of E-R.org can help me understand if this is a totally stupid idea or if I should spend some time to look deeper into this option? Any advice or past experience regarding similar issues is much appreciated!