Pre-foreclosure Deal
has anyone structured a deal with an owner in pre-foreclosure where after the property is sold the owner and investor split the equity in some way?
would it work like this:
1. contract detailing split and other details of deal written and signed.
2. deed transferred to REI
3. loan brought current, rehab done, etc.
4. property sold
sounds easy - i must be missing something. I havn't yet put together any RE deals but am gathering my ammo and just trying to figure out some possible ways of sweetening the deal for a reluctant owner to get the deal going. If the contract were written up this way, how am I gauranteed my % of the profit?
ANY HELP is MOST appreciated!!! 
You have a workable plan. If structured properly and 'forward thinking' it can be profitable for you, and fair for the Homeowner.
If you need help structuring this type of deal, let me know.
SSP-
thanks! I'm sure I will have questions.
I would not go into a PARTNERship or deal with the owner of a distressed situation they already are not living up to their financial agreement already by not paying the mortgage think they have any concerns about doing the same to you?????
Also NEVER and I mean NEVER leave your self open to a possible lawsuit....making agreements and deals and equity splits with the dsitressed owner can lead to BIG trouble.
Also there is a clear legal issue if you are doing a short sale.........bank finds out you have a under the table equity split with the owner they will be pissed to say the least.
SKI
As I understand it it is called loan fraud if you short sell the note and then give the owner$$ directly.
www.i.e. they are defaulting on a 100k note and you get the bank to discount it to 70k and then give the owner 10k at close etc.
Also, if the bank forgives the owner 10,20,30k on a loan then this is taxable income in the amount of the forgiveness to the seller/owner.
If you buy for more than the note being foreclosed on then your ok.
Luck!
[addsig]