Q: "You do realize that you would be required to purchase the property at the foreclosure sale, right? ( after I purchase the note the only way I can get the property back is to offer it at Foreclosure Auction in state of Ohio?
A: Yes, that is correct. The security interest gives you the right to foreclose on the property ... it does not give you the property outright.
Q: And any bid higher than what is owed on the note would go to the current owner. ( you mean the current defaulted owner of the property?
A: Yes, the current defaulted owner. The property remains his until after the foreclosure sale, so any surplus from the sale goes to him.
Q: For example, if the property is worth $100,000, and the balance of the note is $60,000, then I would expect there to be other bidders at the foreclosure auction. If the property actually sells for $100,000, then you (as note holder) would get $60,000 plus expenses to foreclose. The remaining surplus (~$40,000) would go the current owner. ( you mean the current defaulted owner of the property?
Q: 1) how long it will take me to foreclose the property to get the property back once I purchase the note?
A: It'll likely take several more months ... possibly 9 months or more, though it could be faster. It would particularly be faster if the judge allows the receiver to sell the property in a private sale rather than a public auction. But a judge would only allow that if there were unusual circumstances that made it a necessity to protect the creditors' interests.
Q: 2) What processes it will entail, court or trustee sale?A: Ohio is a judicial foreclosure state (as opposed to a non-judicial foreclosure state), which means it needs to go through the court. That's why it can take so long.
Q: 3) How much I should expect to pay in legal fees/court fees including everything till I get the property back?
A: It depends on how much legal work needs to be done. If the current owner does not dispute anything, then it may just cost $1000 in legal fees. But if the current owner disputes something (e.g., the default, the right to foreclose, etc.), then it could cost several more thousand dollars.
Q: 4) Once I purchase the note, does the court appointed receiver stay in place and pay me the rents that is being collected from tenants?
A: No, it's not that simple. The receiver can continue to collect the rent, but it will first go towards various fees such a court fees, receiver fees, applicable property association
fees, etc. You may get nothing from the rent.