I Need Help Fast!
I have found a property that is in pre-foreclosure. The seller owes 120k and it appraises at 155k. The sellers are very motivated and want to move out of the property once we acquire it. We are the only investors/realtors, etc. in on the deal and are ready to move quickly.
However, we are very inexperienced and are not sure of the next steps. Do we make an offer to the seller? Call the lender? The attorney? or what? What would be the steps after that?
Any help is greatly appreciated!
Did the Sellers indicate what they feel would be a reasonable offer? Did you make an offer?
The first step would be for you to make an offer. In writing. Place an Offer to Purchase in front of them. If the agree, terrific. If they are not willing to accept what you have offered, they'll tell you what they want. If their counter-offer is OK with you... you are on your way.
Yes, the seller is just looking to get out. A little cash would be nice. We are offering 125k which includes the payoff and a little bit of cash. We want to make a subject 2 offer.
Can we refinance the subject 2 or is it still considered to be under the sellers name?
Once you own the property you can refiance the mortgage on the property (in essence paying off the existing mortgage and getting one of your own). Of course you can possibly get cash out depending on what it appraises at and you can use that money for a down payment or such on another property.
Thanks myfrogger. That is our intention for sure.
Do you have a specific "subject 2" contract you use?
As a general rule, it's usually a bad idea to ask for contracts, forms, etc. Successful investors have worked hard to perfect their contracts and are usually not inclined to give them away. Also, they may not be legal in your state or specific to your deal.
It's best to speak with an attorney to get you a contract that is made for you and your type of transactions.
I'm not sure about GA, but NC is an attorney state, meaning that attornies normally close real estate transactions. If that is the case in GA, you'll be needing one anyway. It shouldn't cost too much more to have them write the purchase offer as well.
Roger
Thanks Roger. That seems like real good advice.
Roger is absolutely right.
A lawyer prides him/herself on his/her forms, and continues to collect and accumulate them so long as he/she's breathing.
And another layman's forms might or might not fit your needs.
Go pay for your own custom contract and you'll be much better armed than if you just find one, or take out a "store model" and try to defend yourself with it.