Posted by Bill K. (AZ) on March 08, 2000 at 18:08:41:
Jenean,
I’m sorry. I don’t know the names of any hard money lenders in NC.
Bill K. (AZ)
pre-foreclosures - Posted by Laure
Posted by Laure on March 05, 2000 at 07:17:01:
I have two homes where the current owners will just deed me the property. Problem is, that they are both mortgaged for more than their value.
House 1 : Went to the courthouse. There is a 79k first, and a 21k second. Value on the house is 90k. This is all great, and I know I should discount the second… but HELP ! The people are "going to " file BK in a couple of weeks. They have already vacated the house.
House 2: I’m really not that interested in. It’s out of my target territory. but redemption price is 5k over value.
Anyone with experience with these… advice ??
Laure 
Re: pre-foreclosures - Posted by Bill K. (AZ)
Posted by Bill K. (AZ) on March 05, 2000 at 21:38:45:
Laure,
I’ve got a little experience with these types of transactions. My partner and I find that private lenders are easier to deal with than institutional lenders. They make decisions much faster too!
On “House 1”, unless you can get the first to discount as well, I don’t see the deal. Even if the second walked away, you’re still paying $79K for a $90K home, or 88% of FMV. But, assuming you want to proceed, talk to the second lienholder ASAP! If the owner files BK, depending on which chapter they use, none of the lenders may need to discount. Also, it’s important to know who is foreclosing…the first or the second. If it’s the first, it’s a good bet the second is writing off most their interest.
On “House 2”, same strategy. Try to negotiate a discount. However, I wouldn’t spend much time trying to acquire this one since it’s outside of your target territory. There are much better values to be had closer to home.
I’m sure that others will chime in with advice. I hope this helps a little.
Bill K. (AZ)
Re: pre-foreclosures - Posted by JeneanNC
Posted by JeneanNC on March 06, 2000 at 10:38:56:
Bill, how do you get the 1st to even call you back. I have an owner who needs $2k to move and will sign the deed. The mortgage is for $82k with $22k in the arrears. There is only a 1st lien, how can I discount the mortgage is they want talk to me? I need them to discount to $80k. House FMV is $110k. Need $5k in work. Any advise. Can you recommend any hard money lenders that will loan 80% of the value of the house base on the equity?
Re: pre-foreclosures - Posted by Bill K. (AZ)
Posted by Bill K. (AZ) on March 06, 2000 at 11:16:36:
Jenean,
I’m afraid that I don’t have any words of encouragement for you. If you’ve received written permission from the owner to talk to the lender about their loan, and the lender still won’t talk with you, you’re SOL. Also, the lender has to have a reason to discount. If the home is worth $110K, and the lender is only owed $104K, they might not be willing to talk discount. But, it varies from lender-to-lender.
I have tried, without success so far, to get them to write off the arrearages. However, while I haven’t yet been successful in that tactic, lenders have considered it.
Since the home you’re considering only needs some TLC, it is doubtful that this lender will discount to $80K for you.
Finally, I know a few hard money lenders in my area, but none of them will loan 80% of FMV. The highest I’ve seen is 65%.
I hope this helps.
Bill K. (AZ)
Re: pre-foreclosures - Posted by JeneanNC
Posted by JeneanNC on March 08, 2000 at 08:53:45:
Thanks Bill for your response. Will you share with me the hard money lenders in my area? Thanks again!!