Is This A Chance For Preforeclosure?
The sherrif sale for mortgage foreclosure on this house is the first week of June. I am trying to talk to the
the house owes bank 160000 and fmv is around 185000 - 190000. i am trying to talk to home owner and see if he could sell it to me, and suggestions advice in case home owner wants to talk to me. do i have enough time?
thank you in advance
You had better be prepared to move quickly. Usually, when under a strict time constraint, a less than seasoned speculative investor might take a short cut or two... and make an emotional decision instread of an informed, business decision.
If you have all cash.... then the remaining due diligence will be focussed on property condition, and title.
If you don't have cash, and must rely upon mortgage financing, are you able to get a mortgage loan and all that is involved with a loan in such a short time?
The question to ask yourself is this: Why haven't the homeowners resolved this matter, and/or why hasn't another speculative investor stepped in.
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i do have cash offer on the house. i don't know if other investor stepped in or not. maybe they did before me and i just don't know it. i know the house is going to up for sheriff sale from newspaper. and they are posted in newspaper three weeks before the sale. i don't know what else i should do just wait and see if the homeowner will call me?
first find the owner and talk to see what alternatives or opportunitys may exist.
Good LUck
If you have cash and can move quickly, then call the homeowners, and/or knock on their door..
" Hey folks. In case you don't know, there is a Sheriff's sale next week. Unless you take decisive action, you'll lose the house, your credit, and whatever equity you may have. I think we should talk..."
Since it looks like you have cash, why not let it go by way of repo/sherriff sale? The sherriff sale should indicate what the minimum bid/amount owed would be which could be a great deal...
Quote:
On 2004-05-19 18:37, tomcat69 wrote:
Since it looks like you have cash, why not let it go by way of repo/sherriff sale? The sherriff sale should indicate what the minimum bid/amount owed would be which could be a great deal...
because if it goes by-way of the sherrifs sale, others will be involved thus the bidding price will go up, you would get the better deal if you acted now.
I hope this property makes sense in your market as a rental or Lease Option.
The reason I'm saying this is that this deal is very very thin at best, and if it were your plan to resell it within 6 to 12 months, you run a serious risk of not turning a profit.
Personally I would let this one go and look for the next one, as foreclosures are a "growth-market" in the coming period. Just keep looking; there are some awesome deals out there, particularly in the last weeks before the auction.
Happy investing.
:-D
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Fianlly had the courage to knock the door at night and realize it is all dark and nobody is living in there. peek thru the garage door can see lots of packed stuff. so i thought the possibillity is they have sold the house to someboday else otherwise before sheriff sale it is not necessary for them to leave the house
***sigh***
If there is no Sold sign in the front yard.. there is a good chance that the folks haven't sold, but are fleeing a sinking ship.
I hope that you left a card, a doorhanger, and another letter for them in case they returned for their stuff.
Are the utilities on? Is the electric meter spinning? Is the mailbox stuffed and overflowing? Are there newspapers piled up by the front door? Is the grass cut? Are the trash cans empty, full, or missing?
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i will check again tonight on those things you mentioned. thank you for your reply. grass was cut nicely and i will check the mail that makes sense
Good advice ShortSalePro. These people are definitely "hiding" either from bill collectors or they are just plain ashamed. Sounds like you need to get agressive and find these people or loose the deal. I question how "good" this deal is because if it was that good I would venture to say a "seasoned" pre-foreclosure investor in the area would already have this property under contract. Good Luck!
thanks for the reply. that is what i am afraid that somebody have already got the deal. i check the mail box early tonight and it is empty!
I looked at county's sherrif website and until May 4 sheriff returned with "defendant not fount" and it was the second or the third try. so maybe they are hidding or working that they are just simply not at home during the daytime, but at night not home either? a week and half left to the sheriff sale, i guess i have to either call bank's attorney or go to the sherrif sale to find out what happened to the house
What about taping a $20 bill to their door with "call me, I'll buy y our house" written in big red letters?
Maybe the SSpro can answer this question. I know that no proceeds from the Hud 1 can go to the seller. What if a person were to pay $2000 (arbitrary figure) for "vacating the premises etc.?
Something that where there is a "lot" of equity the sellers get domething that will help them on their way?
Randall
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i think hawthorn is right, this looks like an extremely thin deal. it looks like you have a couple options, however you need to get in touch with the owners first. i like stockpro99's idea of the 20$ bill on the door. is it owner occupied or is the property owned by an absentee owner?? if they are absentee owners, then the 20$ trick won't work, you'll have to skip trace them, which will prob cost you 20$ as well.
1) once you've got in touch with the owners you will need to get an authorization to release info and all the other basic short sale stuff. with all that in hand (or even some of it), you can call the bank and see if they will extend the foreclosure sale long enough for you to purchase the house. it sounds like you only need a couple weeks to do the title work and get your ducks in a row. it makes sense for the lender to short this loan b/c the balance is so close to the market value. 80% of 185k is only 148k, so there is a strong possibility that they would not recoup their 160k at the auction and if they end up with the property, they've got several months of fixing/holding/selling expenses to deal with.
2) another option, again assuming you can get in touch with the owner, is purchasing the property sub2. get a contract with the owner to sell you the house and go ahead and close, bringing their loan current by paying the arrears, then sell the property or rent it. i still think the deal is pretty thin to do without a short sale, but if you can do a few minor repairs and boost the prop val, it may be worth your while.
3) if you can't get in touch with the owner, you may still be able to get the house. go look up the case at the courthouse and find out who the lender is in the case file. make copies of the entire file for your reference. contact the lender directly, give them the loan number, and tell them you want to purchase the note from them. some banks will sell you the note, others will not. if they will sell you the note (i'd suggest buying only at a steep discount), you can then either foreclose yourself or try to get them to give you the deed in lieu of foreclosure, or pay them 2k to do so, or really do whatever you want at that point.
hope this helps...