Quote from Bill on September 4, 2024, 5:10 pmI'm curious what everyone else likes better when purchasing Non-Performing Loans, Non-Judicial or Judicial Foreclosure States?
I like a little bit of both in my note portfolio. It comes down to purchase price, and my cost basis on the deal. In my opinion there are good deals in both Non-Judicial & Judicial Foreclosure States. Some of my best deals have come in long drawn out Judicial Foreclosure States.
I'm curious what everyone else likes better when purchasing Non-Performing Loans, Non-Judicial or Judicial Foreclosure States?
I like a little bit of both in my note portfolio. It comes down to purchase price, and my cost basis on the deal. In my opinion there are good deals in both Non-Judicial & Judicial Foreclosure States. Some of my best deals have come in long drawn out Judicial Foreclosure States.
Quote from Jordan Maffuccio on February 18, 2025, 11:53 pmI'll probably start off focusing on Non-Judicial FC states to avoid lengthy and expensive court foreclosures. I'm curious Bill, what did you like about your judicial state experiences?
I'll probably start off focusing on Non-Judicial FC states to avoid lengthy and expensive court foreclosures. I'm curious Bill, what did you like about your judicial state experiences?
Quote from Bill on February 19, 2025, 10:53 am@jordan
I believe most note investors prefer Non-Judicial FC states, but the reality of this business is a lot of the note product that's available, are located in Judicial FC states. This business will test your patience, especially Judicial FC states. As much as we want to work things out quickly as the investor, it's more about the process for the borrower. That process takes time, and with Judicial FC states it slows that process down for the borrower. It gives the Borrower time to get the help they need to resolve their delinquent mortgage, and come up with a reinstatement or payoff. Some of my best deals have been done in the Complaint or Judgment stage of the foreclosure in Judicial FC states. Sometimes in the Non-Judicial FC states, you can foreclose quick, but so can the senior lien, if you're purchasing junior liens. I've had plenty of success with both. You just need to be prepared and understand your legal cost and foreclosure timeframes, no matter what state you decide to buy in. Thanks.
I believe most note investors prefer Non-Judicial FC states, but the reality of this business is a lot of the note product that's available, are located in Judicial FC states. This business will test your patience, especially Judicial FC states. As much as we want to work things out quickly as the investor, it's more about the process for the borrower. That process takes time, and with Judicial FC states it slows that process down for the borrower. It gives the Borrower time to get the help they need to resolve their delinquent mortgage, and come up with a reinstatement or payoff. Some of my best deals have been done in the Complaint or Judgment stage of the foreclosure in Judicial FC states. Sometimes in the Non-Judicial FC states, you can foreclose quick, but so can the senior lien, if you're purchasing junior liens. I've had plenty of success with both. You just need to be prepared and understand your legal cost and foreclosure timeframes, no matter what state you decide to buy in. Thanks.
Quote from Jordan Maffuccio on February 24, 2025, 11:08 amThanks Bill. Those are great points. NY I think stands out to me because it's a Judicial FC state where the courts are so incredibly backed up, and where borrowers there in some cases have gotten used to living in their homes without paying on 1st or 2nd liens for years. I agree that in many judicial states where borrowers may not be as reliant on milking the system, the timeline of the FC process can help the borrower figure out a game plan.
Thanks Bill. Those are great points. NY I think stands out to me because it's a Judicial FC state where the courts are so incredibly backed up, and where borrowers there in some cases have gotten used to living in their homes without paying on 1st or 2nd liens for years. I agree that in many judicial states where borrowers may not be as reliant on milking the system, the timeline of the FC process can help the borrower figure out a game plan.