Re: Forclosureworld.net - Posted by phil fernandez
Posted by phil fernandez on April 23, 2000 at 11:25:06:
Joe Kaiser has a great course on buying foreclosures called Totally Dominate Your Foreclosure Marketplace. It is not a beginners course and some of the techniques you do need to have some money, such as paying off back payments. Other techniques you wouldn’t necesarily need money.
To illustrate this, I did a deal last year where a house was in foreclosure. The FMV was $65,000 and there was only about $14,000 owed. With back payments, interest and unpaid property taxes the sum owed to bring it out of foreclosure was about $18,000. There was also a small 2nd of about $7,500 that was a community fixup type loan that did not have to be paid off as long as the woman lived in the house. 0% interest. I let her rent the house back from me. So I tapped into my equity line of credit and paid the bank the $18,000 to stop the foreclosure and officially assumed the $7,500 2nd. So in this case I did have to have access to $18,000.
The deal I’m working on now is another house in foreclosure. It’s been appraised at $68,000, the balance of the loan is $43,000 and with interest and back payments and taxes about $50,000 is owed to the bank. The bank is willing to forgo the $7,000 and I am working a deal out now with this bank to officially assume the $43,000 obligation and they will stop the foreclosure. In this case I did not have to come up with any money.
So Joe’s course that cost me about $129 to buy produced two foreclosure deals that netted me about $65,000 in equity.