I Have Never Done This... Preforeclosure
I just talked to a lady whose mother's house is about to be forclosed on. I know they owe about 105k against it and the value is about 150k. I would like to see what my options are as far as helping them and making some money here. Like my topic states, I have never done this and really don't know where to start. Should I contact the lender? Should I try and buy the house let the lady do a lease option with me? What are some ways to handle this?
Thanks,
neutral
So if you haven't done a pre-foreclosure before, what have you done? What I mean to say is, what is your experiance in Real Estate?
I have only been involved with REI for about 3 months... The only deal I have done is a rehab deal. I'm just trying to get some ideas of how to approach this. What are the general steps to go through.
Thanks,
neutral
neutral, if you have access to buy the home, then that's one avenue. keeping her in it is the hard part. you could do that, but you'd risk her still not paying and then having the whole situation reappear.
with that, the idea of making money on it, is helped by spending less of yours to do it. so ask her if she's willing to sign it over to you. if she is, then you can take the house subject to her financing and take the deed - when you get it, call the bank and ask what it'd take to have the loan reinstated for her before they foreclose. pay that amount off and you'll have a loan back in place in good standing. you can then do what you must with it - lease it back to her or get new tenant/buyers in there.
hey neutral,
well you have to really see what is it that they want out of it... do they want to stay there? how much do they want if you bought the house? what the least they'll take? Okay, do they need that money now or can they take some now or some later, or it all later??? what are they going to do with that money??? do they have any other consumer debt?? if they do then heres my bankruptcy attny's number... you really have to ask questions about everything and really find out what is it that they want? if all they want is cash out... offer them 5k for their house, if they say no offer more, just dont leave yourself without an out. get a ROA signed and you can even do an Option to Purchase contract with her which gives you some time to market the house for more and get a good deal on it... 135-145 sounds pretty good to me... and let the new buyer know that you can be flexible on price and terms so that they can get financed. it all really boils down to what she wants and what you want... sounds like a good deal but you just have to really know how to structure and what the actual payoff is... Oh, and if they aint makin payments now, chances are they aint gunna make payments after you save em either, so sorry, gotta run em out!!
jus my .02 on every $1.
[addsig]