you know this is a question that i also had and i would like to know the answer. If anybody knows please answer. I am thinking that it is different for every state but maybe not
As reinatalie said the lender gets the property and if the lender is a bank, it then becomes a bank REO (Real Estate Owned). The bank will then try to sell the property, usually through specific realtors. If you go to the "Links" menu at the top of your TCI page and click you will see "Links Main Categories". The first listing is "Bank and Gov REOs". This can be used to access lists of REO properties.[ Edited by edmeyer on Date 03/07/2005 ]
As an investor, you will need to produce a positive cash flow.
This is a marginal deal, but a possible.
Missing info:
What is her monthly payment?
How much can she afford to pay monthly?
What would it take to bring the loan current?
Some essential issues are:
What caused her to be in foreclosure?
What are the chances of her getting behind with you?
Are you willing to risk your hard-earned money on this customer?
Now what are the average rents in the area?
What is the average appreciation in the area?
[addsig]
I did exactly what you are proposing. It sounds like you have already heard what she wants. She wants to stay. You will likely have trouble collecting rent and possibly other issues. You might want to make it month to month rather than a long term lease in case there are other problems. You should not give her an option to buy back. Hopefully, the profit will be worth the difficulties you will endure.
Based on the numbers this could be a vary small marginal deal, but with the current customer I would not do this with her, she has to move, she is just a vary large risk.
Looks like you have a good heart wanting to help her, but this one is just bad new with finances.
I would simply tell her you would like to let her stay but you can not, but you would like to help her avoid this foreclosure and offer to pay to move her and pay for her 1st months rent and security deposit and when she gets back on her feet again in a year or two you will work with getting her in another home.
Accent the damage of foreclosure on her credit records and what happens to her when the home is sold in a foreclosure sale.
[addsig]
She declared bankruptcy over a year ago. That has postponed the ss. I have not contacted the bank. She said the bank is not even willing to let her catch up due to the bankruptcy.
Does the bank really have the option of not accepting her back payments?
Tell her to sign the note over to you and have her make payments to you and you pay the mortgage company. After a yr. co. refi the property back to her name and collect the cash.[ Edited by Diesel350 on Date 03/07/2005 ]
you know this is a question that i also had and i would like to know the answer. If anybody knows please answer. I am thinking that it is different for every state but maybe not
As reinatalie said the lender gets the property and if the lender is a bank, it then becomes a bank REO (Real Estate Owned). The bank will then try to sell the property, usually through specific realtors. If you go to the "Links" menu at the top of your TCI page and click you will see "Links Main Categories". The first listing is "Bank and Gov REOs". This can be used to access lists of REO properties.[ Edited by edmeyer on Date 03/07/2005 ]
As an investor, you will need to produce a positive cash flow.
This is a marginal deal, but a possible.
Missing info:
What is her monthly payment?
How much can she afford to pay monthly?
What would it take to bring the loan current?
Some essential issues are:
What caused her to be in foreclosure?
What are the chances of her getting behind with you?
Are you willing to risk your hard-earned money on this customer?
Now what are the average rents in the area?
What is the average appreciation in the area?
[addsig]
I highly recommend not do a rent to own, with an owner in pre-foreclosure!!! Could be construed as usurios loan.
I did exactly what you are proposing. It sounds like you have already heard what she wants. She wants to stay. You will likely have trouble collecting rent and possibly other issues. You might want to make it month to month rather than a long term lease in case there are other problems. You should not give her an option to buy back. Hopefully, the profit will be worth the difficulties you will endure.
bernardpete
Based on the numbers this could be a vary small marginal deal, but with the current customer I would not do this with her, she has to move, she is just a vary large risk.
Looks like you have a good heart wanting to help her, but this one is just bad new with finances.
I would simply tell her you would like to let her stay but you can not, but you would like to help her avoid this foreclosure and offer to pay to move her and pay for her 1st months rent and security deposit and when she gets back on her feet again in a year or two you will work with getting her in another home.
Accent the damage of foreclosure on her credit records and what happens to her when the home is sold in a foreclosure sale.
[addsig]
Thank you JohnMichael for your advice. I'm going to follow that route.
Sorry, you have to let her go.But promise to assist her in relocation.
she can move in 2 weeks with some cash and credit intact but i doubt quite highly the sheriff will let her stay after the house sells at the auction
She declared bankruptcy over a year ago. That has postponed the ss. I have not contacted the bank. She said the bank is not even willing to let her catch up due to the bankruptcy.
Does the bank really have the option of not accepting her back payments?
Tell her to sign the note over to you and have her make payments to you and you pay the mortgage company. After a yr. co. refi the property back to her name and collect the cash.[ Edited by Diesel350 on Date 03/07/2005 ]