Auction In 4 Weeks!
Hi All,
This would be my first deal. I have found an owner going through foreclosure with the auction about 4 weeks away. First mortgage 25K, second 6K, for a total of 31K (have not verified yet). Comps come in at 70K. It will need about 5K in rehab. Typically how much time do I have to reinstate the default loan before the mortgage company starts their process? Week before the auction? I want to know how I can secure the property in my name, stop the foreclosure proceedings and insure the property. I could pay cash for this ultimately. Sub2’s concern me with getting the place insured. Should I use an attorney or a title company? When would I use a warranty deed vs. a quit claim deed? Is there a generic form I could use to authorize release of information so I can talk the lenders. Any help is much appreciated, I would like to find out soon if I can do this otherwise I will refer him to someone else.
Doug in Wisconsin
I would first get permission to speak to the lenders. I would try to stop the foreclosure by the 1st mortgagor by paying it off,but not before negotiating a short sale with the 2nd mortgagor for $1,000.00 because if the house is foreclosed on they stand to lose the entire $6,000.00.