Valid Action Plan- PreForeclosures?
Does this accurately outline the steps to completing a preforeclosure flip? What needs work? Is a phone call or a personal visit a better idea?
Many thanks for all responses-
I.Find a property
Preforeclosure Situations
A.Search trustee sale listings in the legal newspaper
B.Qualify listings
1.No manufactured homes
2.How old is the Deed of Trust? It must be at least two years old (yielding approximately 12% appreciation)
3.Utilize the Multiple Listing Service to quickly establish approximate FairMarket Value for the qualifying listings with comparable sales lists
4.Qualify the listed property for equity
5.Visit the county recorder site to quickly determine whether a Notice of Sale Release exists - also determine thenumber of Deeds of Trust
6.Visit the county assessor site to determine original sale price and terms -owner occupied or rented?
7.Visit the Recorder's Office to approximate total liabilities for the property
8.With estimated Fair Market Value and approximate liabilities, determine total equity position
II.Find and qualify the Owner
A.Locate the owner
1.Check white pages
2.Speak with the neighbors
3.Check voting records
B.Qualify the owner
1.Contact the owner and verify you are speaking to the correct person
2."I see that your property is in foreclosure - I want to help you by buying it."
3."Tell me about all the loans and liens on your property."
4."What is wrong with your property?"
5."Rate your property on a scale of 1-9."
C. Set a meeting time and make sure they prepare all of their paperwork.
III. Meet with the owner
A. Confirm they understand the situation and will sell
B. View all of the paperwork to determine that the balances are correct
C. Inform the sellers that you may need a Power of Attorney in the coming days to deal with the lenders involved
D.Thoroughly inspect the house and detail all needed repairs
E.Set a return meeting
IV. Run the numbers and present the offer
V. Complete the Purchase and Sale Contract and open escrow
VI. Sell the contract and sign listing agreement
A. Contact appropriate customers and survey interest
B. Complete Assignment and Novation Contract
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