1st Post, Odd Situation On Property

Hi everybody,

We have a property that was brought to us by a friend. She lives there as a tenant, her best friend lives upstairs. They have just discovered the NOD and wanted to see if they could buy the place. It needs tons of work, not worth at all (probably 1/2) of what is owed on it...they are thinking if they can pick it up very cheap from the bank, and just get their money back when they are ready to sell, that is fine with them. It's more a matter of convienence at this point for them.

After some research, we've found that the person who has been posing as the owner and collecting rent, is not the owner, he sold it to someone else a couple of years ago. Supposedly, this guy, had her buy it to "help repair her credit." Apparently he is an attorney adn a mortgage broker, and when she bought it, about 100k extra was taken out on it.

At the very least, it looks very fishy!

We don't even know if the REAL owner knows what is going on and if she even knows she is in pre-foreclosure. Her mail is delivered to this building.

We are wondering, is there any way to get anymore information on who this is? We're in Chicago, so I'm sure there is more than one person with her name. Her address for everywhere that we've found is this buidings address. If we can't find her to offer to negotiate a SS, get authorization, etc., can you think of any other strategies other than than letting it go to auction, then hopefully back to the bank as an REO and THEN maybe they can purchase from the bank? This would be a perfect SS deal to then wholesale to the tenants who want to buy it, since we'd already have buyers lined up...

Thank you!

TP

Have you checked to see if the property tax records with the county show a different mailing address/name?

Yes, it's just that woman's name with that buildings address.

Could be a case of identity theft.

Hum, good point...esp. since he is doing the mortgages probably! We've found other properties that are in her name that have mortgages way bigger than the value of the properties. Or, she's just someone who has no idea what is going on (it looks like most of his dealings are with hispanics, which is also is, so I'm also wondering if he's preying on those who might now understand what is really happening.)

While we'd love to nab this guy if he really is up to something, I think we'll just walk away from this one!

Don't walk away yet, the "story" isn't over!

After some research, we've found that the person who has been posing as the owner and collecting rent, is not the owner, he sold it to someone else a couple of years ago. Supposedly, this guy, had her buy it to "help repair her credit." Apparently he is an attorney adn a mortgage broker, and when she bought it, about 100k extra was taken out on it.

My gut feel is that he is acting in good faith on her behalf. Just ASK HIM what is going on... he will either tell you or he won't. Ask him for the contact information for the "owner of record" and if he balks, ask him "why are you being elusive? What do you have to hide?" This guy is licensed and has a lot to lose if he has no authority to act on the owner's behalf. BTW, in my state an attorney is empowered to perform the functions of a real estate broker, so he could be the owner's PM. Just a thought.

Thanks for the reply!

Looks like things were too late, property apparently already purchased and eviction process started. Our friend is going to start looking at other properties and has asked us to negotiate a short-sale for her like we were going to on this one. We'll juse wholesale it to her if the deal goes through.

We did find out some more...the girl on the mortgages/deed, was his best friends daughter (only in her mid-20's). She has about 5 properties, all in various stages of foreclosures, with about 2x the amount of mortgages on them as they are worth. These are $450k mortgages, and I have no doubt that she did not qualify for these...

Anyway, onto the next deal! There are too many out there to jump into one with so many red flags.

Thanks! Don't worry, I'll be around asking questions!