In a hot real estate market such as NJ, why would any homeowner get into a situation where the bank might foreclose on his/her property? Can’t they just sell and leave pretty quickly before the ugliness of an auction? Am I missing something here?
What you are missing is that onece they have fallen behind even by one payment they are unable to sell the house. They must find the money and with so many people living beyond their means they may not have any way to get even that one.
Why specifically are they not able to sell their house if they are even 1 payment behind??? Wouldn’t it be in the interest of the mortgage company for the lendee to sell the house for a profit and pay the outstanding payments??? Sorry if this question is so simplistic but I am just trying to understand the reasoning. Thanks.
yes that would make sense however it would also be in the banks best interest to see a home below market value once they have taken it back so that they could recover some money but they dont like to do that either.
I also think there is some law that says the people are entitled to keep whatever money they get from the sale like in bankruptcy.
Marley-
Some people just cant get out of the holes the have dug for themselves and some people just dont have a clue about anything.
So you can either help them out in pre-forclosure by paying off there debt and taking over the property and saving there credit, or buy at auctions or from banks for a discount.
Thanks all for your input…
I have learned some valuable information on this forum and although I think the Northern NJ preforeclosure market is as saturated with ‘investors’ as one can be, it is worth pursuing. The other thing I am having a hard time imagining is winning distressed owner’s trust during the initial conversations. What is the ‘best’ approach during the first talks??? As I mentioned on my previous post, I have been mailing out postcards for a month (albeit in small numbers) without any success and am convinced that the way to go is cold-calling and knocking on people’s doors.