Sub To With Pre-Foreclosures?

Comments(9)

• 
  andersoninvestment2nd August, 2003

  None of my sub 2 deals have been pre-foreclosures but I am looking to target that market.
  
  My question is for some of the pro's, what would be the best way to close this deal and get the payments current? With very little or no money out of your own pocket?
  
  Rob

• 
  tbelknap2nd August, 2003

  Get a buyer for the property and use their downpayment to bring the loan current.
  
  
  Tom

• 
  tdelo564th August, 2003

  What kind of time frame should you be looking at if the person is already in foreclosure and into the redemption period? how much time should you alot yourself?

• 
  tbelknap4th August, 2003

  You won't be able to do a sub to during the redemption period. If you do it will be a very short one. Once it goes to auction then you will have to pay off all liens or the bank will take it back.
  
  Tom

• 
  tdelo567th August, 2003

  Then it's probably better to let it go to auction first to get rid of all liens, or will the bank just add them to the price?

• 
  way_motivated7th August, 2003

  if the bid at the auction is enough to cover all of the othe liens then they get paid, if the winning bid is only enough to cover the first then the other liens get wiped off.....

• 
  tbelknap9th August, 2003

  You need to find out what happens in your state. Here with a redemption period of 6 to 12 months, the only one that bids is the foreclosing bank. Now if you don't have a redemption period than you probably have more people bidding at the auction. You need to keep this in mind when developing your game plan.
  
  Tom

• 
  tbelknap9th August, 2003

  Also tdelo56,
  
  If the property goes to auction and you try to sell that property before the redemption period ends, then you will be paying off all liens on the property as if the auction never happened. So the liens are not wiped out at the auction but when the winning bidder takes back the house after the redemption period.
  
  Tom

• 
  ohmandd15th August, 2003

  Quote: Now if you don't have a redemption period than you probably have more people bidding at the auction.
  No, here in NC the redemption is 10 days. And we don't have a lot of bidders, but the banks still pay high for them.
  
  Dustin