Newbie's First Deal
Yesterday I did a search for notices of sale for my area. Today I received a call and set up an appointment for Tuesday night. My questions is, how should I approach these folks? What should I offer? Subject to? Short sale? The auction date is the 28th. Not a lot of time left to negotiate.
Thanks,
Anthony
In a nutshell the main thing (and hardest thing) to figure out is what the sellers want for their equity.
If they are willing to sell for what they owe, you have several options.
If the payoff balance is low compared to market value, consider Sub2 if the lender is willing to put the loan back in place (be prepared to pay a decent amount to get the loan current). You can always just pay off the mortgage here too depending on the equity.
If the payoff balance is higher than market value, you may want to short sale the property. You may not have enough time for a first mortgage but maybe you can create what you need to by shorting the 2nd, 3rd, etc...
You need to first start with an authorization to release information and contact each lender to get info. From there you can decide the best plan of action. If you are not sure, post the numbers here and we'll help.
GOOD LUCK
I would say it a little differently then Frogger...
Find out what their problem is. Solve the problem. Do not focus on their equity. In many cases there will be no equity if they do not solve their problem. I never assume the equity is their equity. The equity belongs to the person who make a deal work that solves their problem.
John
[addsig]
If I decide to do a subject to, what are the legal problems I may face later? Will the lender call the loan due? What is the success rate of a subject to?
These are great questions. I'm also interested in possibly doing a sub 2 preforeclosure. Can you get a discount from the lender? I'm also thinking that I can possibly pay the owner a fee for a quit claim deed, pay the lender a discount for the judgement and try to sell it quick. This way I won't have to pay for a note. Any advise would be appreciated.......really appreciated. I'm very new to this.