What is the Pre-Foreclosure Process?
OK, I went to the courthouse to look for a list of pre-foreclosures or foreclosure auction dates. I asked the people in the room if anyone knew how to get this list...to my suprise, no one in the room knew!
They all had file folders in front of them, trying to look like they knew what they were doing. But, they ended up admitting they weren't sure if they were getting the correct information. So I asked the man at the front desk. I asked how the foreclosure process works and where I can find or make a list of lis pendens. He didn't know and had to ask the other workers in the office. I had to wait on the "foreclosure expert" to come help me.
At least she was informative. She even gave me the website address with a calender search to find what homes are going to be auction on what date. So my questions are:
1. Now that I have compiled the list that I'm going to do doorknocking to...how do I know if it has any equity in it?
2. Is the "Claim amount: XXX" supposed to be how much behind in payments they are? Or what the mortgage company is filing to try and get back? Do you actually have to ask the owners to find out?
3. Once you do get a bite from a homeowner and they're willing and ready to sell it to you. Say you get it under contract...what do you do next?
4. I've heard people say they can close in 24-48 hrs. How is that possible? What exactly is the closing process? Do you just need the "Contract for Sale and Purchase" or is there more?
Can you tell I'm new at pre-foreclosure....Any answers would be greatly appreciated.
Thanks in advance,
Tanya
Hi Tanya,
I had time to answer only one question so I picked #3..
3. Once you do get a bite from a homeowner and they're willing and ready to sell it to you. Say you get it under contract...what do you do next?
I would recommend having a entry and exiting plan when doing any RE transaction. Make sure you know what you are doing because the mistakes can be expensive! How are you going to aquire the property? Are you using creative methods, subject to's, etc... or as important how are you going to sell it? L/O (Lease Option), land trust, CFD, rent, (Contract for Deed), etc... After creating your strategy, you should have a RE attorney go over the paper work (especially if this is your first deal) and after UNDERSTANDING the process you should know the following steps. The attorney can also help you...
Good Luck,
Bginvestor