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Author Topic: Pre-foreclosure  (Read 3130 times)

Offline Kenny

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Pre-foreclosure
« on: February 08, 2004, 03:01:32 pm »
I am a serious newbie to the Real estate game. .  I recently shook off the fear and made contact with a seller. He is a single man who received a "Notice of Default " a month ago.He owes the lender approx. 3 ;D :D :Dk the property is only three years old and he has about 30k in equity. He wants some of his equity, how much  we cannot arrive at a figure. The loan is not assumeable. What is the easiest way to circumvent the"due on sale clause". Should I be added as an additional insured on his policy, would a quit claim be of any help and lastly should I do a Land Trust.
If anyone has a copy of or language pertaining to any of the above I would truly appreciate your help.

I understand that I have a long way to go, but I have established some rapport with this gentleman and I'd hate to let this one get away.
Thanks Again

Kenny Bentley
702-325-2145

Offline JoeKaiser

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    • http://www.foreclosureclues.com
Re:Pre-foreclosure
« Reply #1 on: February 11, 2004, 08:43:44 pm »
Kenny,

How serious?

The first thing you need to learn is "what makes a deal a deal?" There are some factors that matter but the one that matters most and takes front and center billing is . . . PROFIT.

This deal of yours just don't have no profit.

That $30k in equity is not potential pocket. Do you know what we call that $30 in my area?

"Seller's closing costs" (easily 10%, by the way).

And since property values can dip 10% overnight, we don't even count the top 20% of equity when we're doing these kinds of deals. That means in your deal, you'd need a discount of at least $60k before we even looked at it.

Let's say you've got a $33k property you can buy for $30k. Does that sound like much of a deal to you? Me neither! Multiplying it by 10 doesn't somehow make it any better.

So, learn what makes a deal a deal as step #1 and you'll be on the path. Until then, you'll just be dangerous.

Joe Kaiser
www.foreclosureclues.com


 




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