OfflineI am so excited, I can't sleep. REI makes me so passionate! 
I have a seller. I have the buyer FOR the particular property the seller has. Seller is giving up on the home; wants NOTHING to do with it. Doesn't even want to short sale it!
So, I thought of something Dean told us about at the EDGE. I'm going to pursue the NPN (non performing note). She's in default. The loan is about $200K. I'm going to offer $20-50K and try to negotiate with the noteholder. But, I have so many questions because I haven't done this before!!! The ARV is 160K, it needs about 25K in work. I plan to sell it for $100-120K if all goes well.
1. My seller is willing to do a deed in lieu of foreclosure if I hold the note. 
(but not for the bank because they've been so bad to her. ) Taxes are current; no other liens.
2. The buyer is ready to purchase it now. 
3. I'm doing cash for keys to have the property quit claimed deeded to me once I get the note. (that way the seller will also get something out of the deal) 
4. I'm going to make it so the foreclosure doesn't record on her credit. 
5. I can now get the actual NOTEHOLDER, (not the loan servicer or bank it Sis with because I got the authorization)
6. What am I missing here? There has to be SOMETHING!
Tomorrow's Sunday (actually today is, its 2:30 in the morning LOL), so I can't make any calls. Its going to kill me not being able to take action right away. The SA isn't there and the banks are closed. Any preliminary advice anyone out there who buys notes?
Updated to change the deal #. Looks like this deal will take longer than yet another deal (and possibly another) I'm working on!
Ok, I know its been SO long! Almost a MONTH! I ran into a problem because the bankruptcy attorney, without the owner's permission, locked me out and overrode my permission to talk to the bank from the owner! The owner had to talk with the lawyer for over 2 weeks to get them to remove the hold against me! SO, in the meantime I was working on 3 other deals and am just getting around to calling them now.
Now, there has been a foreclosure date set and as I said that the owners had been locked out of their home without any notification whatsoever mid move. I FINALLY was able to speak to a nice gentleman on the phone who was SO helpful! It is literally like pulling teeth, and to find someone competent there is no easy task! (did I really just say that?
Litton Loan servicing is horrible, to say the least and be nice about it at the same time. 
He gave me the code so they can at least get their stuff out; I told them to make sure to lock it up good before they leave.
My end buyer still wants the property, but the owner is still going back on forth as to whether they want to modify the loan once I own the note instead, its very emotional for them understandably; I told them I'll work with them either way, but if they don't want it, I need something in writing and notarized that they will indeed do the QCD keys for cash if that't the route they want to take.
Right now, I have to put in writing that I want to find out who the lender is and go directly to the lender (as of course Litton is just the servicer) to buy the non performing note. Instead of doing that,the owner works at the county, I'm having her pull the trust deed to see who is listed on it. Hopefully that will expedite things a little. Litton NEVER calls back, that is about the only thing I can count on from them! That I will need to chase after them because of all the times I've (and the owners') left messages they do NOT call back, and you have to start over again EACH and EVERY time!
Its a lot of work to say the least! But, this is a learning experience and I intend to do everything I can to make this work because what I learn will be invaluable, and you will all be learning right along with me!
Yeah, I haven't been too good lat updating as of late because of the snafu and other deals, but that's all taken care of now. I intend to work this one until I can no longer.
Thanks for following the thread. Please come by my journal sometime and say hi. 
Happy Investing!
It is CERTAIN we will SUCCEED!
I don't know how you manage to hang in there. I probably would've gone postal by now.
They should give you a cape badge for super-human effort.
Stay the course, you'll get this one done.
Thanks for keeping us updated!
Mark K.
Life Disclaimer: Past Failures are NOT indicative of Future Results.
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You didn't see me on the phone when they said the property isn't in the city that it is actually in and I'd have to call back!
I desperately told them this is the city its in, and then opened a map in google and started naming all the surrounding cities. Got it on the first try luckily! But they were going to make me hang up and call back, after being transferred all over the place. How can people run businesses that way?
How's it going out there in California? Hope all is well. Just read through this post and I have a question. How can a bank or lender deny access to a homeowner on a property that the lender does not have title to? They have not had the sheriffs sale yet so the property has not been taken from the homeowner. Could it have something to do with the property being attached to the bankruptcy. I know here in Colorado people in some cases have to be removed by the sheriff after the auction and they CAN stay in their property right up to the auction date.
Banks can be stupid, but to lock someone out of their house with no legal reason seems beyond even the dumbest lender! Will be interested to find out why!
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
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I'm trying to convince my seller to go after the bank fro unjustly locking them out of the property. They did not come to me until after they decided to move because 'foreclosure was imminent so we moved to a rental'. I know, it sounds crazy , and is crazy, but their mentality was they didn't want to be kicked out with no place to go when it happened; but there wasn't even a sherrif's sale ordered when they moved out. They were moving very slowly and picking stuff up daily when they went one day and were padlocked out of the house!
They went in today, and someone had broken in and stolen a lot of their stuff while they didn't have access to their own house with their own belongings in it, so the bank REALLY did them wrong on all levels!
But they are too scared to take it to court because they couldn't pay their 8.95% loan from 2006 that the bank wouldn't modify that was way to expensive with some changes in their income that they shouldn't have gotten in the first place. I wish I could afford a forensic loan audit for them on the loan to find them in violation of TILA laws. Its no wonder they gave up though. Dealing with Litton is a headache and a half and a total waste of time and head banging!