Question: Wholesale Strategy For Property With No Equity
Hi, All. A "Newbie" here with a question: There is a beautiful townhouse near me that just received an NOD (notice of default), which means it's going to foreclosure auction. It was bought a year ago for $353,000 (which is rich) so probably NO EQUITY in property. I can't afford to buy outright...what wholesale strategies might work in this case, to prevent the foreclosure? Current owners would probably like that too! Thanks, All
Market it as a FSBO. put in the papers, signs etc. Try to market it to the homebuyers. Find out what the properties are selling for now. (this might have appriciated) see what kind of margin you are working with. If its a good enough one, you might want to get a realto involved
this is not really a wholesale/flip question. What you want to do is go to the mortgage holder, convince them they are upside down in this property and that the mortgagee is smart enough to make their foreclosure process very difficult (or that, with your valuable advice he will be) this will keep a non-performing loan on their books for a very long time and make them look bad with the regulators.
They would be much better off to take a discount on their note now and make this thing go away.
This is the art of the short sale and you should be looking in the foreclosure forum for advice.
This is much more difficult where the lender has a fha guarantee or is a big-time mortgage processor. But even there it can happen
it is much easier if the mortgage holder is a local bank
Mark
It takes 21 days to go to sale in Texas. How are you going to flip this property before it goes to sale?
Tom