Help with this deal please. - Posted by Dr Chang

Posted by Steve-Atl on February 21, 2000 at 09:27:45:

I agree with Rick. You need to hurry on this, but be aware of the possibility of other liens or judgements on the house. I would order a title search before I had to come up with over $8k. Even if there is a lien, it still may be a good deal, but at least you will know for sure.

Also, I would get the seller to place it into a trust. I have them then sign letters to the lender identifying me as the manager of the property. After the letters are signed, the seller then signs an assignment of benefical interest in the property to me.

Help with this deal please. - Posted by Dr Chang

Posted by Dr Chang on February 21, 2000 at 01:30:21:

Greetings my Friends.

I have great opportunity to aquire property that is facing foreclosure. I have read my course material and know all about Lease Options, Subject To deals and Cash buy I am not to much advanced on Foreclosures. I will be asking suggestion on a good course to take for these in future, however this deal is to good to pass! House comps out at $138,500.00. Owner lost job and is behind $8,300.00. They are moving out of State and just dont want to face forclosure for credit reasons. The remaining principal as of today is $92,440.00.

My question;

  1. Should I take subject to and bring payments current and then do my thing (L/O or Sell etc)
  2. Should I have property put in a land trust and do the same?

If not any of the above then what way should I go?

Your help is appreciated. With this profit of $37,760.00 a Foreclosure course is in order. Please some suggestions on this too.

Dr Chang

Re: Help with this deal please. - Posted by Rick W.

Posted by Rick W. on February 21, 2000 at 05:56:06:

Dr. Chang
One of the books that helped me with pre-foreclosures is “Goldmining in Foreclosure Properties” by George Achenbach, along with the Ted Thomas book already mentioned.

Pre-foreclosures are one of my favorite ways to buy a property. Not only do you have a VERY motivated seller in most circumstances, but the optimization of your capital is the greatest. By that, I mean that instead of having to come up with the total amount of cash to buy the property, satisfy the mortgage, plus repair costs, you can get away with only the arrearages and repairs, and leave the existing loan in place.

When you take over this mortgage “Subject To” the existing financing, your personal liability is minized as well, so your risks are in only the deal, not your personal credit being affected.

This deal, requiring $8,300 up front to realize a possible return of over $40,000 (not to mention the fact you can mark up the selling price +/- 10% due to the ability to sell it to someone who cannot qualify for a conventional mortgage), is a great opportunity.

If you don’t have the capital to put up for the back payments, look to a private lender/partner/credit card to get the money, but HURRY. Like in baseball, you can’t steal secon base in slow motion, and you can’t wait to analyze this one to death. Get it under contract with a minimal binder, then proceed with your due diligence.

chapters 1-5 or so… - Posted by RR Smith (not an expert)

Posted by RR Smith (not an expert) on February 21, 2000 at 05:02:33:

Read the Ted Thomas and george Arch. foreclosure books.
The first few chapter will cover the answer you need, which in this case is #1, with a sales pitch and the correct contracts. Hell they even have expensive pre-foreclosure courses on this site…