Posted by LeonNC on March 20, 2002 at 09:27:10:
don’t have the information I’m looking for. Have a good time at the convention. I was there last year, gonna miss this one.
Anyone, anyone??
LeonNC
Preforeclosure…can someone please explain - Posted by LeonNC
Posted by LeonNC on March 20, 2002 at 01:32:04:
What is the process and tools neccessary to tie up a preforeclosure to flip. I’m going to consult with an attorney but I sure could use some basic knowledge. I’m thinking the best candidates for this are the people who are going to walk anyway.
I was considering paying a fellow a large sum to teach me this but thought I’d see what I could get from the CREOnline exeperts first. You could be saving me a small fortune.
QUESTIONS:
What’s the process if a dicount is needed on say a second mortgage? Do you tie it up contingent upon lenders approval or do you get lenders approval then tie it up? What’s the process of getting a lenders approval?
What’s needed to tie it up? Purchase agreement with an addendum including what kinds of language. Do you use a CYA letter (I might save it and I might not)? I would not think a land trust is necessary.
After it looks like it might be a go what homework should be done or is a title check adequate?
I’m sure I’m missing at least a few steps so please feel free to add anything you think should not be overlooked. I’ll feel a lot more comfortable after I can at least visualize the abc’s of this technique.
Some other things I have written down if you’re really in a sharing mood. Feel free to cut and paste. When do you record the deed? Do you co-sign for sellers new lease…yikes? Do you assign or double close these? Since I’m in a higher priced area I can see listing these with a realtor…any thoughts on the selling end?
Anyone who takes the time to answer this I will tell you now I very much appreciate your time and effort.
LeonNC
Re: Preforeclosure…can someone please explain - Posted by Rich[FL]
Posted by Rich[FL] on March 20, 2002 at 11:30:58:
Let’s see if I can shed a little more light…
If there’s a second, talk with them and make sure they understand that the first is in the process of foreclosing and they will get nothing if they don’t act. Then ask them what they’d be willing to accept to buy their position. If you own the second, you’ll stand a better chance of being able to negotiate with the first to reinstate the loan since you’re now a secured creditor.
There are several avenues you could probably take at this point but I’d go to the first, tell them you want to make up the back payments and continue to make the future payments, then get a deed in lieu of foreclosure from the owners for your interest. In the end, hopefully there’s enough equity from the first and the discounted second to be worthwhile.
A purchase agreement to buy the note should be all you need to buy the second at the agreed-upon price. Just before you get serious and put down any money, a title check would be prudent. A deed in lieu of foreclosure is a rather simple thing (it may be a little more involved with more than one mortgage in place - I’m learning more about that now since I’m about to go through this same thing!) and I’d find a good RE attorney to do that. I found one who would charge me about $400 or so for that service. But that was an estimate on one where there was only a single mortgage.
Hopefully this isn’t too cryptic; I’m kinda rushed trying to finish up my half-day at work and getting ready for the drive to Atlanta. Too bad you’re going to miss the convention. I’ll be off until I return next Monday.
Good luck!
Rich
Re: Preforeclosure…can someone please explain - Posted by Rich[FL]
Posted by Rich[FL] on March 20, 2002 at 05:57:20:
Leon, there’s a lot of good information here in the arcihves about foreclosures and pre-foreclosures. I’d suggest you do a search on the word foreclosure and read all you can. There’s also some good information in the how-to and money making ideas portions of this web site you can read to get some good information. Finally, there’s a top-notch course sold, where else but right here on this web site you’d be well advised to look in to and that is the foreclosure course by Joe Kaiser. These sources will answer many if not most of your questions.
Good luck!
Rich
(leaving for the convention in 6 hours!)