Re: Pre-foreclosure - Posted by JoeKaiser
Posted by JoeKaiser on February 20, 2002 at 05:01:07:
Good thinking, but it’s a bit more complicated than you seem to imagine. Still, it’s worth poking around a bit.
Your first move is to tie it up with a purchase agreement, contingent on your successful negotiation of a discounted payoff. No discount, no obligation on your part.
Contact the lender (not the trustee . . . he’s only there to shuffle the paperwork) with your proposal. Make it compelling (nasty foto’s are helpful . . . let me know if you need some, I’ve got plenty ;-).
Include fixup estimates using brutally honest figures.
Package all that with your proposal. The proposal should include a “drop dead,” date (a date after which no deal can be made) to get them to move quickly (but don’t hold your breath).
Most importantly, it should be made clear that should they decide to “pass,” on your proposal, the only possible outcome is that they get the property back. You need to be absolutely sure that they understand that if they decline, they own that sucker, warts and all, and that between now and then, its condition can only get worse.
Some loans cannot be discounted. Some lenders have no incentive to do so, their losses being insured. You may have a great and reasonable plan that makes sense but for a number of reasons, cannot be accepted. In other words, you just never know.
Finally, “lease option” and “foreclosure” rarely go hand in hand. Buying foreclosures takes real money, and whenever real money is a factor, you’ll want a real deed for your troubles.