Pre-Foreclosure Questions
I am looking for detailed information to help me in pursuing pre-foreclosure properties in IL.
Through a foreclosure website I have found multiple properties that the balances range from 10-60% below the original balance, many of these homes are in highly desireable neighborhoods.
I have recorded the contact information and am formulating introductory letters, biz cards and post cards to be sent to the owners on a periodic schedule.
I am still studying the pre-foreclosure, subject-to, short sale process and I have a few questions?
Are these a 1-2-3 step process?
pre-foreclosure as property type
subject-to as financing type
short sale as negotiating process
Second question?
How can I use the equity in the property to pay the back payments due?
thank you all for reading and responding, all comments deeply appreciated.
First of all, no one has to be in pre-forclosure for you to buy their property Subject To. They do have to trust you to make their payments for them because the loan stays in the sellers name and the property is deeded to you. Obviously the seller either has to trust you, be highly motivated, or both.
I think it would be hard to use equity in a property that you have not purchased yet to pay back payments.
If you have equity in a property that you already own you could take a loan out on that.
Additionally you could negotiate a forebarance on the sellers loan and have some or all of the back payments put on the back of the loan. Gook Luck!