In order for him to stay in the house, someone has to make up all the back payments to the lender, and the lender has to agree to reinstate the loan. Not likely this close to the sale date. Or the owner could deed you the property and you could get it financed (and pay off the original lender, including all arrearages, interest and attorney fees, etc.) and then have the skip tracer LO from you. These are not easy to do when lots of months of now payments and interest have accrued. It takes mucho dinero to get into them. Of course, if there is enough equity, it could work with the seller deeding to you. But usually there isn’t at this late stage in the proceedings. You need to go to the archives to read up on foreclosures and preforclosures.
Here’s the deal. Got a call today from a guy responding to one of my Rent to Own ads. He needs a new house because the house he’s living in is being foreclosed. He’s been paying rent, etc, but the owner hasn’t been paying the mortgage or taxes. The owner, by the way, is in JAIL!! How do I know? Because the tenant is a skip tracer!! He tried to take over the house by going out and getting a new loan, but his credit wasn’t good enough. He said he wants to rent to own and would just prefer to stay in the house he’s in now. YESS!!!
Here’s my question… is this as good as it sounds? I’ve spent all my time so far studying L/O’s and flips that I don’t really know how to proceed here. Any ideas? The auction’s scheduled for December 4th. So it’s an urgent matter at this point.