Need Preforeclosure Info Fast
Hello Everyone,
I located a property that is in foreclosure. The bank is going to take the house on Sept 1. Is it too late to intervene?
I want to get the house under contract, then flip the contract to another investor. If it's not too late, how do I stop the foreclosure process? Get permission from the homeowners to talk to their mortgage holder?
I'm learning the wonders of wholesale, but foreclosures are new to me.
Amelia
Typically you are going to want 30 days in dealing with Banks. Remember they are slow. As far as you putting in an offer - I must warn that if you are not talking about a cash offer - Sep 1 - probably is not going to be enough time.
Good luck and hope that helps - most importantly hope you get your deal done.
Thanks for the response. I thought banks would want to avoid foreclosure even at the last minute. Should have known better, right?
Amelia
You can always have the homeowner sell the home to you before the sale and make up their back payments.
This will stop the foreclosure, give you title to the property and allow you to wholesale to an investor on your own time schedule.
Hope This Helps!
Mrs. Meltzer
That's an idea. I need to find out how far behind they are. I like the idea of wholesaling on my own time. I don't need any more gray hair!
Amelia
Get the owners to sign a Loan Authorization Form.
This will give you permission to get information about the mortgage.
Then contact the loan company/trustee/lawyer and ask for the "reinstatement figures"
You can "cure" or pay the back payments and foreclosure fees up until the morning of the sale.
Have the homeowners sign the home over to you before making any of their back payments. OR they might change their mind and there will be no way for you to recoup your money.
Hope This Helps!
Mrs. Meltzer
You haven't been specific about this deal. Is there enough equity to flip to another investor? Will you have to negotiate the lenders down to make this a deal? Does it need repairs?
Tom
Good questions. They owe $119k and the house appraised a year ago for $179.9. Haven't seen the inside, but I drove by this morning. The appraisal figure is within the realm of reality for that area, though on the high side. Couldn't get a good take on the condition of the house during the drive by.
Amelia
Thanks Mrs. Meltzer! I'm taking notes.
Amelia
Make sure there are no other liens on the property. That could make quite a mess for you. If none exist, great. Good luck!
Thanks again to everyone for the information. The more I find out about this property, the more it sounds like I need to walk away.
They are 1 year in arrears and there's a state tax lien on the house. The appraisal value ($179k) that the owners stated wasn't really an appraisal. It was a guess made by an RE agent. I'm going to check comps just to finish the due diligence, but I don't think there's any equity here and I don't think I'm going to be able to sell this one to another investor.
(A Wiser) Amelia
Amelia,
Good work on the due diligence. Be careful abotu buying blind - aka not seeing the inside of a house. We've seen houses that look great from the outside and ened 50-100K once you get behind the curtain.
And always, always, get a title search.