Purchasing Pre-foreclosure Wtih 1-10$ Down?
Can this be done? And are there people out there that have actually done this type of transaction before?
Ok, picture this. I go to a homeowner facing foreclosure. The house is worth 200K and the loan and existing defualts add up to 155K.
I make offer of 2K at closing with 10$ up front earnest money deposit of contract. I then sell the contract to the flippers that advertise in the paper and then give the owners as promised 2K at the sell of contract.
10$ up front just seems to good to be true. Can this be done?
Why is this illegal in CA?
If he gets a contract sub2 the original loan, plus 2k for equity, what is wrong with that?
-or-
he simply assigns the contract over to someone else? are assignments illegal in CA?
I am the new guy to this site. The extent of my knowledge is two books. I have just started in the "investing" world, less then 3 months ago. However, to answer " Can this be done?" HECK YES. I got 3 properties under contract. All over 200K owed per property and all going to trustee sale. My offer which was Accepted on each and every property was 1.00 down and the sale price of 100K. all offers were subject to the lender accepting as pymt in full the offer price. The sellers had no problem with the amount they just wanted OUT from under the loan w/o a foreclosure on there credit. Sad to report trying to get the lender to accept .50 or less on each $ owed is a whole different matter. They,lenders, rejected all my offers. The point is a motivated seller is willing to sell for almost any price as long as they can get out from the amount they owe the lender. The trick is to get the lenders to accept the short sale $ amt. The lenders like countrywide, hsbc, and others are playing real hard ball right now and dont want to give you the time of day and are quit willing to take back the properties. We will see what happens when more and more foreclosures start happening. anyway, hope this is of some use to you.
Quote:
On 2007-04-30 16:05, TheBalletortheBullet wrote:
Can this be done? And are there people out there that have actually done this type of transaction before?
Ok, picture this. I go to a homeowner facing foreclosure. The house is worth 200K and the loan and existing defualts add up to 155K.
I make offer of 2K at closing with 10$ up front earnest money deposit of contract. I then sell the contract to the flippers that advertise in the paper and then give the owners as promised 2K at the sell of contract.
10$ up front just seems to good to be true. Can this be done?