Has Anyone Done This!
I have run cross several people that instead of buying homes that in pre-forclosure or forclosure, they help the home owner keep their homes by talking with the mortgages company.
I was wondering if anyone else here is doing that? And have you had any success with it.
Southernbg
I have done one that is close. I bought a property and let the seller remain in the property which is generally considered not a good idea. I am currently working with them to help them buy back the property. I did not give them an option to buy back but they expressed interest in doing so when they qualified for a loan so I am trying hard to help them. This entire episode has spanned over a year and a half.
This is an option. You can lease option the property back to them and they must then pay the going rate for the home which should be more than they originanlly paid for it or are paying now which might not make much sense. The second they sign the deed over to you it is yours to do what you wish.
Having a passive income is not a bad idea. Letting them stay might help you do get one where they feel it is still their house so they might handle it a bit nicer.
Just a thought.
ok...I think everyone misunderstood my question, so let me ask another way.
Say someone is in pre-forclosure. Instead of working with them to buy the you work with them to KEEP the house. The house never leaves their name.
Instead, I would call on their behalf to the mortgage company to see if there was anyway that I could work out a payment plan for them
With this....they would be happy and I would be happy....
What do you get out of this? Would you then buy it subject to or lease option it?
I would get paid for doing working out a plan with the mortgage company.
There are some who do this. I saw a post on one of the forums just a few days ago. I can't remember the name of the post or the forum that it was on, unfortuantely. If I find it, i'll let you know. I do remember that the post said that it was a sucessful experience.
Thanks Sand!!!
There are come and go guys that cant make it doing the buy and sell so they try this angle. Never seen one make it in these parts, most of them walk the scam line many of them control the seller with promise of a work out only to push them up to the sale date with fees charged along the way leaving the seller with no time to make deals with any one except the work out company. With no respect I look at these guys. I believe it could be done with intent to help.You would be the first around here to do it legit.
Rickomarsh,
I am sorry to hear that investor down your way are walk the fine line of scamming people.
I am and will be honest in the way that I help these people. I know what it is like for someone to go thru forclosure(my parents). It is no fun...
My goal is to help them help themselves. If I can not help them.... I do not keep the money!
Plain and simple!
Sounds like a plan, are you going to run with it? How about an ad in the throw away that says keep your home let me show you how. Drive them to your web site and tell em what you can do. Sounds like fun, hope it works
This is one of the options I offer to homeowners in my campaign. You do not get paid much from this, but it is a right thing to do in my opinion. I haven't done it myself yet, I read a know-how book about it and think of myself as an expert. You can find info about it searching for "forbearance" or "standstill" agreement.
Southernbg,
Dear Lady, are you sure you want to get into this type of thing? Do you have a great love of people? Are you the kind of person that it you get spit upon you merely smile and pull out a handkerchief?
Are you willing to learn all the things you will have to know to have any effect on these peoples? Are you willing to accept the fact that of every ten deals you will become involved in at least Four will be Pro Bono? Have you considered as an alternate path, Holy Orders? A Social Worker among the Shittes in slumy Bagdad? At least you get to wear a bullet proof vest and hang out with Airborne.
Ok you are one of us. Now you have to learn to read people. Become aware of the hand moving to eye line, the crossing of legs, the stare past your ear as they describe the terrible actions of all those others who caused this little problem.
You must be able to instantly recall from your memory at least five bombproof lenders who will lend on not C,D.E. paper but the real bottom feeding stuff. Where they try to pass off Food Stamps as part of the Monthly Mortgage Payment.
You must be prepared to realize that some people cannot be helped and that all you can do is give a little assistance as they move from their slumy little one bedroom shack to the spacious comfort of the back portion of the pick up truck.
Are you prepared to make arrangements to go to the local jails to obtain a Quit Claim Deed from a spouse who has just tried to murder his wife and children, yes has even stooped so low as to kick the family dog, has the bit marks to prove it and wants to file an action naming the dog as Defendant?
Can you prevent a foreclosure the day before? How can you arrange a reinstatement of a defaulted mortgage with a partial payment and a big hairy promise.
Are you prepared to Restrain a Sale while you attempt a Short Sale and Failing that, (without burning down the house) Obtain a secondary bridge loan from the lending source who is on the first position?
Can you deal with a Loss Mitigator who from his shifty look and lack of interest displays all of the profile of an active sadist yes even goes into deep irregular breathing as the Auction Gavel decends
for the last time throwing some lady in her ninth month and with five kids hanging all over her. into the streets and not just for walking.
Still want to help the downtrodden ok, now study for the real estate license. Buy a few books on this site. Listen to those of us who go forth to bang on doors and try to work out problems that Einstein could not solve, yes even if he did get a haircut.
I always remember the little old lady about 75 or so. Who at the end when we had sold her house, opened a bank account for her to stick the remaining $10,000 or so and made sure she did not lose the keys to her new tiny little condo. Handed me a Dollar Bill as a tip for my service. Soooo it has its occasional rewards. You will not get rich but if you are trying to build browny points to get into heaven and have a shot at the 70 Virgins, why this is your field. Enjoy I have.
Lucius
southernbg,
As another poster pointed out, this very topic was discussed recently. The subject you are getting into is called 'forebearance'.
Do a search in the foreclosure forum for for a post entitled "What To Do With A Homeowner Who Wants To Stay" - This covers what you are talking about. Good luck.
Mark
Consulting in a pre-foreclosure requires the mindset of a professional Japanes Mikado player.
The rules involve sifting through a myriad of truths, halftruths and blatant lies from all the parties involved.
And perhaps, yes perhaps, you may get paid for your effort (they had no money to start with, remember?). So I suggest you leave that to the Pros; the Mikado players of the League.
Your role as an Investor is to get that property signed up. A few deals will be easy; most of them involve some serious focussed effort, involving discipline and skill.
Yes, there usually is a need for empathy and hand-holding, but only because of your recognition of the stress that the owner is coping with, and your desire to make a profit while giving them an honest chance to get on with their lives after you have created a solution for their crisis.
[addsig]
There is a company called United Capital Mortgage Assistance, another company called American Real Estate Group. I'm not allow to list a website until I'm Senior Status. Check the search engine. The first company has been in business for 7 years. The 2nd company for 33 years. They are Loss Mitigation Specialist. You can sign up with them or try to do it on your own. But the 2 post above me really made it clear, do you really want to deal with all the problems. But you can make some money helping them out the their mortgage companies. Good Luck "HAPPY NEW YEAR"