How do you help these pre-foreclosures?? - Posted by charity

Posted by Tim on December 21, 2000 at 14:35:30:


I have yet to see a decent preforeclosure program. Be very careful with preforclosures. The owners rights are a lot different before the sale. And in some states like Colorado they have rights after the sale. You shouldn’t go through your first one without an attorney.

Finding them is quite easy and I really don’t think you should waste money on a course. I have a little classified ad, a network of mortgage brokers, realtors, and bankruptcy attornies. I also get Notice of Defaults (N.O.S.'s) emailed to me every week from the different counties in my state. I can’t even keep up with the calls and email.

You can learn and get the paperwork from fannie mae and freddie mac’s web site. Shorts are not easy for a “newbie” they won’t take you serious. So be professional and send them the forms I just told you about.

What you need to focus on is… How are you going to solve thier problem? If you can answer that question and make a profit, you’ve answered the magic question.

Final note:
I really hope Ed puts together a program, but I have been approached by several of the “infomercial gurus” to buy the rights to my program. If I can find a “guru” who’s program I can actually feel comfortable endorsing I may go that route. If not, I have been pesetered for years my clients, investors, etc. to sell my own. I’ve even had special software written for me. I am considering both.

I hope this helps even a little.


How do you help these pre-foreclosures?? - Posted by charity

Posted by charity on December 18, 2000 at 15:16:46:

I sent a large postcard mailout at the end of last week and have gotten 2 calls so far. Listen to these two:

  1. This man actually calls me to ask if I can loan him $4000 to catch up his payments so he can keep the house. He doesn’t want to sell it at all. He just wanted to know, since I buy houses, didn’t I have the money to give him?!?!?!

  2. I would love to be able to help these people, but I am not sure how I could. They are 6 payments behind ($2400 per payment, so over $14K total). The home is about 7 yrs old and in a good area. The foreclosure report shows they owe about $205,200 on an ARM taken out in 1998 at 10.85 interest. However, she said they want $221K for payoff at the bank (I am assuming this is because they added in all of the lates). The last appraisal done showed a value of $210K. First, I don’t have the funds to pay those back payments and second, there doesn’t seem to be any equity. Would any of you pursue this at all? I can’t see an exit strategy.

My main question is how often can you work with a pre-foreclosure? Every one that has ever called me has been do far behind in payments that there is no profit left. I would love to L/O some of these, but the amount past due would be more than I could ever get from a T/B. Any ideas on pre-foreclosure in general??


Re: How do you help these pre-foreclosures?? - Posted by Tim

Posted by Tim on December 18, 2000 at 18:42:50:

Preforeclosure is a very good market to be in but beware the law is different than an non distessed situation.

What state is this property in?

Do you understand how to negotiate a “short sale?” If you can get the lender to take a short you usually need cash. That’s why people bring these type of deals to me or a hard money lender.

If you are able to get a short email me or find a mortgage broker in your area that has hard money sources. if you can’t get a short or don’t know where to start I suggest you walk from this one.


Re: How do you help these pre-foreclosures?? - Posted by dewCO

Posted by dewCO on December 18, 2000 at 16:47:00:

Find a partner with the money to bring them current if you can flip them and or negotiate and 2nds down tog ive you more room. this one has equity so the first won’t take lees than what’s owed most likely. That’s part of the trick, getting to them sooner so they aren’t so far behind!

Where Can I Learn More About Short Sales? - Posted by WayneMD

Posted by WayneMD on December 19, 2000 at 10:31:40:

Tim – Do you have any suggestions for books or courses on strategies and how to profit with short sales?

Thanks, Wayne