Preforeclosure Assistance
I am looking to tie up a property that is headed for sherrif sale on april 1 . I dragged my feet on this one because it is my first and it had a fire. I didn't know whether I wanted to begin with such an involved proces on my first deal. Anyway, I can pick it up for a song and am having an inspector friend ( who has fire restoration experience) look at it friday. I am initiating a sale ( asking for a package from the lender) tomorrow) hedging my bet. I am just afraid that it's gonna hit the radar of a bunch of investors and make the deal more difficult. Is there a way I can tie up the property through the seller. She is a friend and called to ask my assistance and will pretty much do whatever I recommend. Can I subject to this home just to tie it up and then just buy it cash through the lender ? Or is there a better way ? Either way , whether I keep it to rehab or flip it to an investor, I want the home now. Thanks in advance for any help.
First things first...
Get a Letter ( Authorization to Release Information) stating it's OK for you to speak with the bank on this persons mortgage. Call the bank and see IF they will even consider a Short sale at this point in the game.
I think Sub-to is out of the question at this stage in the game, most lenders if it gets this far along are skittish and just want their investment (house) back, or PAID IN FULL.
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Can I subject to this home just to tie it up and then just buy it cash through the lender ?
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If you take it Subject -to, you STILL have to get it paid before Apr 1. It doesn't help you out much.
IF you can get a loan for the full amount owed, and close before apr 1, you can buy this house. If it's a good deal it MAY be worth doing.
What are the numbers, FMV? Final judgement? Mtg. balance? Est damages? Help us help you.
If none of these suggestions work out, and you still wanted to help the homeowner, you could try to get a Deed in Lieu package, but it's likely too late.
Best of luck,
Sam
Thanks very much for your reply ,sam. You made me realize how much information I left out of my cry for help. I already have a letter ofauthorization and have spoken to the bank people on numerous occasions. They hint that they would take approx. 6,000 (about 10% of what is owed. The home , fixed up nicely would be worth 75-80,000. I won't know the extent of the work to be done till friday, when we inpect the property. I guess my question is "is there a way to tie up the property through the owner so no one can interfere with the bank negotiations. (other investors) ? " I would just pay cash for the home prior to April 1. Thanks again and sorry for giving only part of the story. Rookie mistake. Blueshadow
are you sure you want this deal? you sound unsure that maybe there is to much rehab. from the fire. how extensive is the damage. it may be cheap but do the repairs out weigh the price. if you have not done many rehab.s it could be over powering. good luck. kenmax
Blueshadow -
to answer your question about can you tie the property up - YES.
WIth that being said I'd like to mention two things. One this person you are trying to help is a friend you had mentioned and will do whatever you reommend. If this is truly the case she wouldn't sign on for another investor. In any case, I'd just use an agreement to sell real estate. That way you have the property under contract which brings us to our next topic.
Contracts.
My guess is that since you are asking about how to lock the property up you don't have contracts that you have used in the past. Most if not all of the experienced investors on this site will tell you that you should have the contracts you use reviewed by your local RE attorney. So you might want to get started on putting something in place there.
I hope that helps you.
Ryan J. Schnabel