Preforclosure In My Lap.. Now What?
I have never really done anything with foreclosures before. I purchased one but it was just conventional, through a lenders real estate agent, nothing fancy.
I have a deal that has fallen into my lap. The house is located in Utah, were the market is flat but I really think it's poised for rebound. A homeowner came to me inquiring about a home of mine that I rehabbed. She is 4 or 5 months behind on payments because here husband lost his job. She's owned the house for four years so there is not a ton of equity, and like I said the market is slow. She owes about 140k the house is probably worth maybe 150k.
Because the market is slow I was thinking about approaching the lender with a 120k offer, because I'm certain they don't want to put it on the market right now. Do you think that is crazy, should I ask the lender to finance me for a higher loan with lower interest?
What is the best move here? The homeowner says she can prove she and her husband are working again and I was considering renting the house back to her (rent-to-own). They just can't afford the back payments. Obviously I would need some equity in the home to protect myself. Please advise.
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