Possible Good Pre-foreclosure Deal.
Today I received a call in response to a marketing letter. The home is worth $80,000. There is a first of $52,000 with Fairbanks and a second of $9,000. The caller's father died 1 year ago and the daughter made payments for a while but is now behind. The home is still in the deceased father's name. Will this present a problem? I plan to offer $1000 to the 2nd mortgage. This leaves $28,000 in equity. Should I also try to short the 1st with Fairbanks. I hear they are hard to deal with. The house does need some repairs. This house hits the courthouse steps on Jan 7th. Any advise is appreciated.
The way that I would do it would be to ask the sellers (or the daughter, whoever called you) if it is allright with them if you called the lawyer for the plaintiff. I would call the lawyer because he is handling the case for the bank. The lawyer handling it will be listed on the forclosure notice or on correspondance with the sellers family. Personally, that is who I would contact but I may have a different idea than many others here do.
i don't know if Fairbanks will accept it with that much equity. maybe they would. but i do know that you MUST stay on top of them, weekly at least. i just got out of a situation with them yesterday on a home (today was sale, i'm anxious to see if it got purchased at the sale). thier bpo was high and i doubt they were open to moving even 15% down from that number. i wish you better luck with them, than i had!
Is it worth my time to try to get the 1st with Fairbanks discounted maybe 10% or see if they will drop all the fees and late charges they've tacked on? Every dime helps and I would like to give the sellers a few thousand if possible. If Fairbanks is open to a short, will they automatically postpone the sale or must I somehow get it postponed myself?
Who is on title? If father owned it and died, did everything pass through probate properly, and is this woman CLEARLY on title?
I agree with Dave. Forget Fairbanks until you find out who is on the title. Then deal with the executor. At this late date (less than 21 business days to sale) your best bet might be to make the back payments after getting a sale contract. I doubt Fairbanks will be much help.
If the subject property is titled in the decedents name only, you will need to probate the estate in order to get clear title. Was a will made out, if so you need the personal reps signature on the contract, not the heir. This is how the seller is put in the contractt (Mike brown personal rep of the estate of John Brown). Was the property the decedents homestead. If not the deal may be more complex according to the homestead laws of your state. Probate/homstead law varies from state to state and you know the routine, seek help from an attorney
[ Edited by rickomarsh on Date 12/18/2003 ][ Edited by rickomarsh on Date 12/18/2003 ]
The daughter which is who I spoke with on the phone is the executor of the estate. The records I have access to on the internet have only the father's name in public record. I have not yet been to the courthouse to check title. I will try to meet with her today to get more info.
kleach:
" If Fairbanks is open to a short, will they automatically postpone the sale or must I somehow get it postponed myself?"
they'll postpone it ONLY if they're considering *accepting* the offer and not just if they've *gotten* your offer. also if you wait until you're inside of 2 days, they won't postpone it at all ... in PA at least.
Hey kleach
If I may sugest that you first try symphaty. Ask fairbanks to just forget the mortgage because you do not have the money and they do. What you got to lose? In the worst case scenario they can say NO. Right? And if you manage to buy secund for $1,000. I will pay you $1,500 for it, so you made a 50% profit in no time plus you got the home from a pure women that will go to street. have some mearcy. offer her to reinstate the morgage and then split the equity. isn't that a fair deal?
Otherwise, the interesting question is how you are planing to pay for a shortened 1st? With $500 profit you got from me or in natur given resources such as for example florida orange grow trees.. who know. as I sad, if you don't ask, you cant ween,
Hey, dont forgat to let me knw the moent you got those shorts. I love those and be glad to take them off your hands the moment you fill like seling them. Good bless TN. !!!!!
omega1