Posted by Marty on March 13, 2001 at 20:11:12:
I think my best bet would be to set her up in another place–it’s just so hard with 5 kids. She will be able to handle the payments–it’s the husband that blows the money!! I do plan on getting them to quit claim it to me–I might be able to just assume the loan they have or if not, it would be like a refinance since it was quit claimed-right? Thanks for your thoughts!
Working on a foreclosure property to make a deal - Posted by Rose
Posted by Rose on March 12, 2001 at 20:11:51:
I had Carleton sheets program for 3 weeks now. These programs work for anyone who wants to make it work. I am already reseaching on a pre foreclosure property to make a deal from the bank.
You may want to read it again . . . - Posted by JoeKaiser
Posted by JoeKaiser on March 12, 2001 at 21:59:03:
Preforeclosures are not in the bank’s domain. You’ll need to contact the homeowner to “make a deal.”
Joe
You may want to read it again . . . - Posted by JoeKaiser
Posted by JoeKaiser on March 12, 2001 at 21:41:55:
Preforeclosures are not in the bank’s domain. You’ll need to contact the homeowner to “make a deal.”
Joe
Re: You may want to read it again . . . - Posted by Rose
Posted by Rose on March 12, 2001 at 23:48:54:
Thanks for correcting that wording/terminology on the preforeclosure. You are right, bank do not own this yet. I had talk to the owner that’s how I found out the bank name and mortage information. I am going to wait until the day of the foreclosure. The owner is in big financial mess, I am not going to meet his terms. He is looking for some investor to come in and pay off the house and let him stay there with lease option. I don’t think he can afford to pay rent. The house is worth about $150k market value and he owes to the bank $130k. I had a talk with banker they seem to go for $130k easily. I think I may have a chance to even bargain for less (another 10K-12K??). I am investigating all other financial mumbo jumbo on this property in the meanwhile.
Re: You may want to read it again . . . - Posted by Tony-WhitneyTrainer
Posted by Tony-WhitneyTrainer on March 13, 2001 at 10:11:53:
Rose, When the home goes to auction, there may be other investors bidding on the property, if not the bank may entertain an offer after the auction but again other investors might do the same. It is kind of a tight deal depending on the condition of the property, You have already established communication with the homeowner and he may change his tune about what he is willing to do. He may just let you have it for the payoff amount. It may be too tight even then. Thats up to you based on your numbers and knowledge of the area.
I personally feel that in the future you should continue to deal with the homeowners before the auction to see if they need to sell. If you can learn to make offers that solve some of their problems, your offers get accepted. Learn to be a good listener, they all have a story and are really needing to tell it. They just don’t have anyone to tell it to. That story will tell you how to make offers that solve their problems. It can be rewarding. If you make a deal with the homeowners, everyone wins. I personally like knocking on doors, but you can send them a letter or put a WE BUY HOUSES sign on a tree near their house. Even if you are a begginer, they look to you for answers because they are usually non real estate proffesionals. In my experience, when someone goes into foreclosure the banks, trustees and attorneys don’t send someone over to sit and talk to owners about their rights or options. It’s up to people like me and you. Good Luck,
Tony
Re: You may want to read it again . . . - Posted by Marty
Posted by Marty on March 13, 2001 at 11:54:50:
Tell me it’s possible!-- I was taught when you purchase a pre-foreclosure that you need to get the current owner out. I have in my lap an opportunity to do a great deal on a home that has equity, but the problem is that it is a friend of mine. A mother of five with a crummy husband. Divorce is in the beginning stages. She wants to lease option it back from me. I know it can work, but if it doesn’t you’re evicting a friend. I would love to hear a success story in dealing with friends and family by trying to help them out. I would love to keep her and the kids in their home for many reasons. Should I or find her a new place as training advised?
Re: You may want to read it again . . . - Posted by David Alexander
Posted by David Alexander on March 13, 2001 at 11:15:27:
good Post Tony…
At the ktichen table is where you put deals together, while learning to listne and solve problems.
David Alexander
Friends and family - Posted by B.L.Renfrow
Posted by B.L.Renfrow on March 13, 2001 at 17:17:25:
Is it possible? Sure. The real question is whether it’s a good idea. Only you can answer that one. To some extent it depends upon whether you’re looking to make money, perform a humanitarian act, or a little of both. I’d have a couple concerns right off the bat: Does she have the ability to make rent payments? If she couldn’t pay the mortgage, how could she be expected to pay rent, which would need to be higher than the mortgage payments if you’re going to make a profit? And what about the husband’s interest in the home? Unless he’s quit-claimed his interest to the wife, you’d need to deal with him also.
If you do decide to proceed, you should consider up front what you’re going to do if she can’t/won’t pay down the road. If that happens, it would mean the end of your friendship, a mighty expensive lesson, or probably both.
Having said that, I have taken a preforeclosure subject-to from a relative. But they moved out, so I didn’t have to consider my options if they didn’t pay. And I doubt I would sell or rent to a relative or close friend. I think it’s generally better to keep business and family/friends seperate.
Perhaps another option would be to take the house off her hands, but help her find a place she can afford to start over.
Also, you’d probably get more response if you posted this over on the main newsgroup.
Brian (NY)
Re: You may want to read it again . . . - Posted by Rose
Posted by Rose on March 14, 2001 at 24:44:56:
I am meeting the owner on Sunday to discuss some options. According to the information I gathered, he can not afford to pay the rent or any other lease terms. Since I am kind of new to this I can use some advise. Eventhough there is $20k equity in the house, unless my expenses are covered for $130k loan, I am not going to have any cash flow. How can I convince this owner he is upto his head and he can not afford to stay there?
He wants me to give the house back to him with lease purchase option 5-10years. I am afraid that he won’t be able to make his payments. Any suggestions??
Thank you Tony and others for all the input.