Preforeclosure Help
I have a morality question. I was in contact with a realtor yesterday about a property and told her that I was looking for motivated sellers. She directed me to a property they were listing that the bank was about to start the foreclosure process on. I went and looked at it with her last night and the house is an investment dream. 1710 sqft main floor, 1200sqft 2nd floor, 1200 sqft wide open unfinished basement. the house is in great shape but needs cosmetics badly. It has five bedrooms and 2 1/2 baths. They just dropped the price from 69,900 to 54,900. The realtor said all offers will go to the bank for review and the bank was desperate for any offers because they don't want it back. I think the sellers are good people, but they just had some health problems recently got behind on payments. They have owned this home since '74 and are going to lose their home. I know I would be better off to go to the owner directly and try to find out what they owe and then go to the bank and try to settle for a figure as payment in full so they can't go back at the owners for the difference, but I also have a resposibility to the listing agent. I'm not sure but since they have owned it that long, the mortgage might be assumable. Any help would be great. I did place a low ball offer in at 40,000 because if the bank is that desperate you never know but I kind of hope they don't accept it.
go talk to the owners....see if you can help. When it's all said and done and you made a nice profit off the deal, go give the listing agent a finders fee.
Make sure if you go this route, that the property is unlisted.
Roger that! Pay the listing fee and be done with it.
C-
My experience in life has been that , whenever I post a "moraility question" to myself or anyone else, I usually know the answer already.
AND...the answer to any individual's morality question must, almost by definition, be entirely subjective.
It sounds to me that there are opportunities here for a win-win settlement.
You just have to find them.
Correct me if I'm wrong, but if the bank hasn't forclosed yet, they don't own the property yet. Approach the owners,find out what they owe and then structure a deal where they can come out with some cash and you should be able to include a finder's fee for the realtor. You don't want to make the realtor mad, they brought you the deal. Good luck!
The bank hasn't forclosed yet, but I am thinking since all offers are submitted to the bank, they owe more than the current asking price so the sellers will lose all equity in the deal.