Posted by E.Eka on October 17, 2003 at 11:44:17:
If the owner is known to being late, why would you even consider leasing back to him/her? You’d be just putting yourself in the 1st lender’s shoes.
You’d have to run the numbers, and determine when you want your money. Either on the front end or back end.
Pre-Foreclosure - Posted by Sophmore Investor
Posted by Sophmore Investor on October 17, 2003 at 10:47:30:
It’s been a while since I’ve had a chance to talk with you. Since we last talked, I’ve have graduated up to six rental properties. However, I have run across an interesting situation. A friend of mine ran across an individual that will be losing their home to foreclosure the first week of November. The owner has the pay the sum of about $25K to the attorney’s or lose the home. I am pondering what options to use. Should I look at A) Buying the property and leasing to owner, B) Buy property and give tenant small sum of money ($5K), or C) Flip property to another investor. The owner desperately wants to keep the home but the owner is already 8mos behind and has a history of being late. I’m not sure what options are available for them to keep the home. I would appreciate ALL comments and feedback no matter how frank and direct. Thanks.
Re: Pre-Foreclosure - Posted by Cat
Posted by Cat on October 17, 2003 at 14:05:03:
You must let the owner know that he/she will have problems continuing to keep the home. Explain that you will give them $5k to start over and keep their credit intact (the foreclosure will not show on their report if you take over prop) and they can rent an apt, house that is more managble for them. Otherwise they will lose the house, their credit rating because of foreclosure and it will be a bit harder to begin again with fc on credit report. Remains for 7 years?