Preforeclosure - In Need Of Help On How To?
Ok...I have a deal in CA right now I am trying to work, I have worked out the terms with the owner and he is agreeable. Problem is, I got a little ahead of myself and am not sure how to close a preforeclosure. The home is worth 280,000 and the owner owes 180,000. He has bad credit and can't afford the payents. I am just unsure on how to start and close this. Do I call the trustee and correct the rearages after the home is in contract, or do I put it in contract and include the rearages as part of the sale? I have never worked a foreclosure before, but I have a great deal that fell into my lap. Please walk me through the process.
You don't tell us what you are trying to do... or even what you want to do. Sure, we can walk you thru this, but we might end up walking you right into a wall.
If you are simply trying to purchase this property, bring your Contract to any real estate lawyer and he/she will walk you thru this.
Sorry for being so vague. I was looking for info to purchase, but I figured it out.
In California, when doing an equity purchase (buying a pre-foreclosure), please read California Civil Code 1695.
You must give the buyer 5 business days as a cooling off period. Unless the foreclosure is less than 5 business days, then the seller has until 8 AM of the day of the sale.
Also, there is certain language that MUST be in the contract (even in a certain font type).
Hope This Helps!
Mrs. Meltzer