Becoming A Foreclosure Stopper....

This might come off as a statement, but believe me, it is more of a question for feedback.

I "heard" that you could actually postpone a foreclosure for a distressed home owner. How? Well, I "heard" that you could get permission from the home owner in view to contact their foreclosing lender to persuade them to hold the process for, oh, 30 days or so.

If this is true, I have a game plan for this technique:

1. The lender says "sure, we'll hold the foreclosing... but ONLY for 30 days."

2. I then negotiate to purchase option the house for the balance of the loan... maybe slightly higher depending on how much is paid down (this will keep the seller from walking away empty handed).

3. Assign the contract or purchase option to an investor who can close quickly, pronto.

4. The seller walks away with cash-in-hand, the buyer walks away with an awesome deal, the bank is happy they don't have to worry about a lowsy auction, and I... well you know.




Is this genious or fiction?

Comments(4)

  • TNTRASH27th October, 2004

    I do something like that!! I find people that are in or a candidate for foreclosure, give them u-haul money catch their payments up and take over their loan,But I call it sub2!LOL

  • jugg200027th October, 2004

    Hmmm..

  • edmeyer27th October, 2004

    You may need to put up a non-refundable amount in order to get the sale postponed for 30 days. I put up $15K to postpone a sale while I finished up my financing to purchase. Closed on day 29.


    You may have difficulty doing this unless you have an all cash buyer. If you have to pony up to postpone the sale, you may have some nervous days until the buyer closes.

  • JohnMichael28th October, 2004

    You can use some of the following to delay or stop a foreclosure action.

    Special Forbearance
    Loan Modification
    Partial Claim

    For FHA Loans - The lender might be able to help you receive a one-time payment from the FHA Insurance fund. You may qualify if your loan is at least 4 months but no more than 12 months past due and you are able to begin making full mortgage payments.
    The funds must eventually be repaid. You will be asked to sign a promissory note and HUD will place a lien on your property. The note is interest free, and can stay attached as a lien that becomes due when you pay off the first loan or when you sell the property.

    For VA Loans - Financial counseling designed to help you avoid foreclosure is available at VA Regional Loan Centers. Call 1-800-827-1000 and ask for the phone number of the Loan Service Representative that can assist you.

    An Alternative, HUD-Approved counselors - HUD-approved counseling agency. A counselor can help you determine which options might be available and negotiate with the lender to work out a repayment program. Call 800-569-4287, weekdays between 9:00 am to 5:00 pm Eastern Standard Time.

    Bankruptcy is an option that can stop foreclosure, at least temporarily, and give you some leverage to resolve the foreclosure.

    In the military, there are special rights under the Soldiers and Sailors Civil Relief Act, to stop the foreclosure and you also may be eligible for a reduction in the interest rate.

    Procedural errors in the lender's foreclosure or lender errors when you acquired the loan could permit you to file a lawsuit to enjoin or stop the procedure.
    [addsig]

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