No More Tenants! Pre-Forclosure? Short Sale?

Hello,



I own 5 rental properties but would like to get into a different aspect of RE investing preferibly one that doesnt involve tenants. .. SS / Pre- forclosures sound great but there are 2 points I would like to ask about.



1. How does one know if home owner X is at least 90 days behind on their mortgage?



2. And if I do know home owner X is behind on their mortgage what do I do? Call them up like a common telemarketer and start asking them about the house their about to lose?

Because I would have a hard time with that.



Thanks for any and all input!

marc

Comments(6)

  • MadMarc12th July, 2007

    Ya I have come across those forclosure web sites. Would you say you found your best leads this way? Because we have all seen those "WE BUY HOUSES FOR CASH" posters, in your opinions is that a better way to generate leads? Let them seek out you.

    Thanks!
    mm

  • cjmazur13th July, 2007

    is it bad tenant or bad screening of tenants?

  • MadMarc13th July, 2007

    Neither. Just the idea that I could do what I do and not have to deal with the monthly grumbles of tenants make me almost euphoric.

    What is your method of choice for finding good forclosure leads?

    thanks!
    marc

  • LoudInvestments13th July, 2007

    Here is the problem, and I will save you pain and frustration. Deal is, 95% of the prperties are upside down. Meaning....they owe more than the property is worth. In Los Angeles, most people are 150K - 200K upside down, so there are no deals there. you need to find the ones that actually have equity in the property. That is the trick.......

    Matt

  • MadMarc13th July, 2007

    Loudinvestments
    Isnt that the point? Isnt that why they call it a "short sale"?

    The bank is out for more than the property is worth, so they have to dump it at a drastically reduced price and eat some cash inorder to get it off their books. Isnt that what a short sale is?

    thanks!

  • MadMarc13th July, 2007

    Thanks for the responses!

    cjmazur, to help me understand a bit better could you tell me what a good oportunity would look like to you? a deal with "hair"?

    thanks!

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