Re: Have a couple of newbie questions… - Posted by JoeB(Atlanta)
Posted by JoeB(Atlanta) on February 19, 2000 at 22:08:09:
Just adding to Andy’s comments-- you could payoff a 10-year loan early, even after 4 months…just beware that if the lender is sophisticated (ie some private lenders and certainly most institutional lenders) they may have a pre-payment penalty in the note/mortgage.
This means that if you payoff the loan very early (usually in first year or two) then you’d be subject to an extra 1% to 3% as a penalty for the lender not getting ‘enough’ interest from you. This should almost NEVER happen when you’re getting seller financing, since you (or your attorney) should be drawing up the note/mortgage.
Re: contacting pre-foreclosure homeowners–you can often get a phone number by using a ‘reverse search’ (ie typing in the house address) in lots of the Phone Disc software or I think the www.infospace.com site allows you to do this, too.
Also, could try mailing a postcard/letter to property address and getting owner to call you. BUT, most people I know who make lots of pre-fc deals right before auction do it by knocking on the homeowners door (but be prepared for some serious rejection).
Hope this helps,