Preforeclosure Investors
Are there investors out there who do foreclosure bailouts for people(allowing them to stay in the property), in exchange for getting the deed until there bailouts are paid off?
I ask because I have 3 people who are at relatively low ltv's that are in foreclosure & they want to stay in their homes. Being that the foreclosure process has already started, no bank will refi them. In denial & desperation they've come to me for help. I've explained to each of them that they would have to agree to transfer the deed to the property until the investor was paid off and they have all agreed to that.
Now, I need to find some investors who would consider doing this. Is this possible or Am I crazy? How do I find these people if so, and how can I be assured that I will get paid for my work. Any help would be much appreciated.
If they didn't pay the first mortgage, why do you think they would pay an investor?
I have to agree. I would NEVER rent to someone in this position. They can't make the payments on the house now and they won't be able to pay the rent.
Time for some straight talk. Be understanding but firm and tell them there is no way to save their home.
One of the perks of being in your position.
[addsig]
The first guy did a (sub2) with his friend only to find out that prop. taxes hadn't been paid for 4years. He has sunk 40k into the property. The note is at 52k & back taxes at 15k. The house appraised for 125k over a year ago. He also had a quaddruple bypass and was laid up for some time which compounded his problems. Why will he pay? Because he if he don't, he will lose his investment, which is the exact reason he would agree to enter into something like this in the first place.
Greetings,
I'm doing an similar type of deal right now for someone who's going into foreclosure. I’m buying their property and putting them back in it on a lease option. With the right LTV, it might be a good model for your people.
If you want to contact me directly, I’d be happy to give you more details, or might be interested myself.
Mike
I've helped 4 people this month keep their homes and I just changed some of my marketing to gear towards homeowners that want to keep their homes (if it's not to late)
I just charged them a fee to do a workout with their lender. I don't pay up any back payments unless I get the property and they are willing to move out. If they want to stay, I can negotiate with their lender for them, but I will charge a fee for doing so and that fee must be paid up front before I do anything.
They are responsible for the mortgage at this point. If they can't keep up this time around and they want out, I will be on the front line when they want to sell. I will take over the property but they have to move out. I don't want to lease back anything to homeowners, I would rather have them leave the property and not look back.
That is exactly what I'm trying to do. Find an investor who is willing to buy the property, and l/o it back to the homeowner. If the LTV is right, I can show that the h/o has the ability to pay, & they are doing this to "buy time" and not lose their home, why wouldn't an investor do this???
It's a no can lose situation for the investor, the h/o stays in the home, & I get some $$$ for the setup.
Billy black,
These peple most certaintly can save their homes ...as long as YOU are involved. There is 58K on the table. Think.......how can it not work for you?
Janet
Janet,
I don't have the $$$ myself to buy it & l/o back to them. I need someone who is has the $$$ and is willing to do it, or at least is open to the concept, and will look at each individual situation.
mcole,
how many of this type deal have you done? How would you describe your success with this structure?
BillyBlack:
I may have several investors and may personally provide foreclosure Avoidance funds for at least one or all of your homeowners...
I'll need you to provide details ...maybe a 3Way with each homeowner can help to reveal WHOM I CAN HELP and???
PM me for the questionaire or to set up phone calls.
If what you say about the property values is the actual fact---upon due dillegence my investors and self can fund within 21 days.
I hope this helps!
Derrick Ali
[ Edited by DerrickAli on Date 01/25/2004 ]
BB,
Send me your deal. Upon review with the particulars I may very well fund this myself.
Janet
If you this type of deal in Florida the buy back can and will be viewed as a loan. Keep your profit below a usurious amount. Seek qualified legal counsel.
Rick Marsh is K-Rekt!
Bily---my group and I make these types of 'loans' if you will as purchase of PERSONALTY within Trusts set up for delivering the deal from the auction block.
If in deed there is enough equity we will determine if a purchase of Beneficial Interest (percent) of the Trust Property is warranted.
We will then lend amounts needed to FREE the TRUST A$$ETS (aka the property) from DISTRESS.
The terms of repayment on the funds used to do this (SAVE the HOME FROM FORECLOSURE) are spelled out within the Beneficiary Agreement used to set up the Trust.
After due dilligence it takes a total of 3-7 Days from Beneficiary Agreement to Funding.
Loan is un-recorded but can be secured through a UCC Filing against the Trust and NOT the HOMEOWNER!!!
Avoids complications like RESPA, HUD-1 requirements, USURY, CA Pre-Foreclosure or Equity Skimming complaint Issues, ETC.
Best of all in the event of a default their a confession judgement and forfieture of
Occupancy + Use by the resident of the home ----although THEY DON'T LOSE Their REMAINING EQUITY INTEREST they will have to Move.
If they forefeit the right to stay their remaining equity if any will be re-paid to them upon settlement from the sale of the trust property.
This being done through Simple Eviction vs. foreclosure as Trust Property has NO STANDING within foreclosure court's jurisdiction.
Amounts to about the same thing as a confession jdgmt in a mobile home pk.
I hope this helps!
Derrick Ali
PM me if you need help putting together Lending to pre-Foreclosure homeowners within Trusts.