Want To Purchase Foreclosure Sub-to
I'm meeting with a (seemingly) motivated seller tomorrow. He is in foreclosure (Jan 7 is the auction date). The house has been appraised for $135K, balance is $103K. The problem is that there is $9K in back payments and penalties (bringing total payoff to $112K). I'd like to purchase the house sub-to with $2K or less. Is this possible given the #s/timing? Will lenders negotiate at this point (deferring/reducing fees)? What are my options?
Thanks!
I believe it goes according to state law. Get the homeowner to sign authorization and fax that to the lender and the attorney. They sometimes take a day just to update that on their computer. Then they can take weeks just to get payoff/reinstatement figures.
Each lender seems to have their own way of doing things. Perhaps if you start the ball rolling, you can buy some more on the sale date or reinstate it before the date.
if you are paying the back payments and penalties to bring the loan current based on the numbers it seems way to thin to make any money. What do you intend to do with this property? What is your exit strategy?
Dave
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