Structuring Pre-Foreclosure Deals
I am new to buying pre-foreclosures. I am looking to make my first deal by mid March at the latest. I live and Florida and I am wondering how to structure a deal financially of course. I'll take advice from all comers. I have 10K+ to invest.
Can anyone help?
Your question is very broad and not very easy to anwer. I'm sure you can get a bunch of ideas by reading the forums, which I recommend. I'll lay out two of the routes here. Keep in mind in order to pursue any of these you've got to meet with the seller and get all the appropriate paperwork signed - which of course you ran by your real estate attorney.
1. forebearance agreement with the bank
cure the back payments and start making payments from here on out if possible or recast the loan. From here you can sell sub2 or L/O. If you're not familiar with either of these methods there are forums dedicated to both methods of investing.
2. short sale
talk to loss mitigation rep and get them to take less than what is owed. Then you're able to get into the property for much less than what is owed, instant equity for you.
Read up on the forums, maybe you can pick up Finkel & Conti's book on Foreclosures at your local bookstore. It's a good read.
Ryan J. Schnabel