Sub2 Buying Foreclousers
wantting to know is any one useing this way to buy foreclousers ?
if so what problems are you running in to if any ?
as well what if any extra or differant paperwork are you useing ?
any thoughts at all in dealling with sub2 s this way
iam surprised no one is doing this or is just not responding
No, noone does it this way. Here is why.
If a property has already been foreclosed, then the bank owns the property free and clear. There is no mortgage to take subject to.
Okay I am sorry as i might have said it wrong here or it is has been miss read
I guess i should have said preforeclousers and not foreclousers
Iam talking in the when the property is still with the owner the bank or whom ever has not sold it as yet
But if they do not do something then it will become a reo
So let me reword this this then
Is any one useing sub2 to buy preforeclousers from the property owners ?
And if so are there any other paperwork then the normal you use ?
And are you or do you have any problems with doing it this way ?
You need to be aware of a few things in this market when buying preforeclosures. You would want to be aware of these in any market, but now a days it is more critical.
1. Plan on a large cash outlay because to keep the bank from foreclosing you will need to catch up the payments.
2. Make sure you read and completely understand the loan documents so there are no surprises.
3. Have you investigated how long it will take you to resell and made plans for holding costs?
4. How much is the current LTV? If upside down, how are you going to handle it?
5. How much are properties in the area appreciating or depreciating?
6. How much do you plan on making? And your plan for making it.
7. Repairs?
8. Can your buyers get financing or are you planning to be the bank?
Just a few things to think about
John (LV)
Thank you John ( LV )
The cash out lay can be large it would be how far behind the seller is in his mortgage
But if after your due -dill on the property you will know if it is worth the buy
As if you do it right you will know every thing you should know and or need to know to make the buy
And i think in this market to sell with some /or all owner funding may be a good deal
And then work on getting the note sold as soon as at all possible
I am of the thought to make a smaller amount then most and go for the # s as there is a lot of properties out there right now
Say on a simple property make 10 K and in hopes of doing at least two a month
Is this something you can see to be done ?
Quote:
On 2009-02-26 13:40, northwest01 wrote:
Thank you John ( LV )
I am of the thought to make a smaller amount then most and go for the # s as there is a lot of properties out there right now
Say on a simple property make 10 K and in hopes of doing at least two a month
Is this something you can see to be done ?
By your statement here, how fast the properties are moving or just sitting will determine how long you will have to wait to see a profit.
John (LV)
Thank you John ( JV )
This is true of any real estate if it is not moving then you have along waite for the pay off
But if you can help the sale along with some kind of funding then so much the better
This is why iam thinking of offering owner financing in some part
And really real estate is in it s down cylce and as we know it will go up may be not for a few months or more
But in my area it has not been a big hard fall and the price is making all the yes /no of a sale
Quote:
On 2009-02-26 13:25, jfmlv1950 wrote:
You need to be aware of a few things in this market when buying preforeclosures. You would want to be aware of these in any market, but now a days it is more critical.
1. Plan on a large cash outlay because to keep the bank from foreclosing you will need to catch up the payments.
Have you ever seen an investor be able to do a short sale on a preforeclosure subject 2 deal??
A short sale i am thinking on any pre property is possible. AS it has not been taken back as yet by the bank
And that being the case it is all ways open to some kind of deal
I would think the house would be under the scrutiny of the bank, and and trying a sub-to w/o the banks permission would get caught.
THIS is true
i have found some will answer a mailling thinking you are there to loan them more money
They for the most part in de-nile of the whole thing
i have one who said yes i will work with you and then backed out when they saw no i was not the person bringing them more money to throw after there problem
so have even called me in this last month begging me
I DO NOT WANT TO BE THROWN OUT OF MY HOUSE
Well i hate to be the one to give you bad news but i will be kinder then your bank /mortgage company but you are going to be out either way
And this is more so true if you do nothing at all as this will not fix its self [ Edited by northwest01 on Date 06/03/2009 ]