Posted by IB (NJ) on March 15, 2006 at 12:56:29:
Hi Rebecca. It sounds like you need to do ALOT of studying before you approach folks in preforeclosure. These people are on their last leg and about to lose their most prized possession, their home. You need to be informed about the foreclosure procedure in your state AND your county. You need to be aware of the homeowner’s options. You need to have the money to be able to purchase this property within the next 7-10 days. You don’t sound like you can do either of these and may end up causing the homeowner more harm than good.
First get with an attorney who’s familiar with not just real estate, but FORECLOSURES as well. Visit the sheriff’s office of the county in which the property is located and find out if the owner is afforded any postponements. Also find out if there is an redemption period (if you don’t know what a redemption period is then you really have a lot of reading to do and I would NOT advise you to pursue this deal any further). Contact a hard money lender and find out what their terms and turn-around time is on loans. Then contact title companies until you find one that can close in 5 days (your lawyer should have one). You need to have all this lined up BEFORE you approach the owners. Then forget about sending letters. KNOCK ON THEIR DOOR AND INTRODUCE YOURSELF. Be ready for a lot of questions and make sure you have the answers.
And read, read, READ all you can here on this site on foreclosures and preforeclosures.