Foreclosure deals, HELP! - Posted by Dan(IN)

Posted by Utah Investor on February 12, 2002 at 09:59:00:

OK, I?ve checked out the foreclosures, and have a list. Now what?

You are doing great so far. For now, that should make you first in your area to:

  1. Mail them fliers
  2. Call them
  3. Knock on their door

OK, how to I get the Light ones?
What do you mean ?good ones"? Do you mean with a lot of equity?

If that is your question, the answer is yes, you can.

One of the greatest secrets in chasing foreclosures is to quickly (VERY QUICKLY) separate the good deals from the bad ones. I do that in about 5 - 10 minutes per deal.

Next is just jump in and start working’ them.

When it comes time to work the deal, you won’t get a new loan, OK? Why get a new loan when you are just going to flip it and resell it immediately? That’s anywhere from $2,500 to $6,000. Why give that money to a mortgage company just to flip a deal? You will not payoff their loan, OK? Trust me.

They’ll sign the house over to you (via a Quit Claim, or a Special Warranty Deed), and you’ll flip it. The person you sell it to will get a new loan, that will pay off the old loan from the old homeowners, and it then gives you the cash difference. You’ll get paid from the Title Company/Escrow Company for your profit.
These are the basic steps, there is much more. But hopefully now your eyes have been opened to the possibilities.

Follow these ways, & you will get what you want in Real Estate, and in life.

Best Regards,

Foreclosure deals, HELP! - Posted by Dan(IN)

Posted by Dan(IN) on February 12, 2002 at 08:41:57:

I check the courthouse about once a month for new filings, as soon as the attorney files a motion. So short of getting to the seller as soon as they start missing payments that’s about as quick as I can get it. I don’t know if there is a faster way. But anyway, Is it possible to get into these properties LIGHT. I don’t know how to structure winning deals when I have to cure their current loan or get my own? Anyone have any suggestions? THANK YOU!!

Re: Foreclosure deals, HELP! - Posted by Rich[FL]

Posted by Rich[FL] on February 12, 2002 at 15:26:59:

Utah Investor gave you a pretty good idea of what to do next. Once you have your list, you can either send out postcards (what I do) to the people and see who reponds. Those who do will usually be “easily” motivated to work with you. Those who don’t respond just don’t know they’re motivated - yet. Keep sending postcards or letters up until the sale takes place at the courthouse.

Now, once you have a motivated seller, what do you do? Call them and find out what they want! It’s usually at this stage that nearly all of the various creative techniques can come into play (not all at once of course! ) First things first. Usually you need to find a way to pay off the back payments, interest, and taxes (if any) to stop the foreclosure. Then you can figure out what to do next and that is based on what the owner really needs. Often, all they want is out - out of the house and out of the responsibility to make the mortgage payments. Then do a subject-to deal, give them a few dollars to move (based on your possible back-end profit), fix-up as necessary then keep for rental or sell. If they want too much cash up front, but you still have a “generous” back end profit, you may talk them into a lease-option arrangement. Or you could take subject-to and give them a mortgage for the difference, a zero interest, zero payment mortgage due in, say, 5 years or when the house sells.

Or if they still want too much and there’s no profit in it for you, tell them no thanks but keep in touch every few weeks because they may just be ready to give the house away as they near the courthouse sale date. You’ll need to be ready to move fast at that point to stop the forecclosure though.

Lots of creative possibilities in the world of pre-foreclosures, but it ain’t necessarily for beginners or people with no money.

One other thing…you say you check the courthouse about once a month - I check mine every day, or at least once a week. That way I can get my postcards sent out sooner and give me more time to “work” these deals.

If you haven’t already, I’d suggest getting Joe Kaiser’s foreclosure course from the web site here. It’s chock-full of great tips and suggestions on how to do these types of deals and at the price they’re selling it for here, it may as well be free! So much great information for so little money…

Anyway, hope this helps. Good luck!