Pre Foreclosure Deals, Great Opportunity
I have a property where they owe the bank 154,000 plus a little under $20,000 in lates. The home is in a neighborhood where they sell for between $260,000 to $300,000. He is not really interested in selling the property, but foreclosure papers have been filed. He would really like to keep the property and would be willing to pay up to 12% interest on a loan of around $180,000. How should I go about this. Should I buy it from the bank as cheap as possible and then resell to him for the above terms? Or is there a better way. Are there any investors that are interested in this and would pay a finders fee? I actually come across quite a few of these. Not with quite as much equity, but still some very good deals.
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Da Show,
If you could please send me the details of your deal to kcurry_at_fmcc_dot_com. Thanks
From what you say, this doesn’t sound like a motivated seller. At least not yet. In fact, he doesn’t even want to sell. All he’s asking for is a $180k loan from you. And he obviously hasn’t paid the loan he currently has. You say he’s $20k behind on a $154k loan? That’s a LOT of missed payments.
There might be several ways you could work this, but doing a loan for him isn’t one of them. And until he’s motivated and ready to sell, it doesn’t matter anyway.
I too have done pre-foreclosures and put the owner back in the property. But it’s not a recommended approach and can be very risky. So, be very cautious on this deal.
My 2¢