New here: I would like to know what paperwork has to be in place to take over foreclosure. Case , pay up back payments, then do you get a prosimary note from owner, which should interest or do a lease buy from owner if acceptable. Also if any more advise on this type tansaction.
Thank all
Chuck
first perform a title search.
get an authorization from the borrower for the lender
get a payoff and arrears
negotiate a forbearance/reinstatement
GET THEM OUT OF THE HOUSE
Get a warranty deed and title insurance
Pay arrears
Happy investing!
Please expand on negotiating forebarence/reinstatement. I take this to mean discuss this with the mortgage company with owners approval, of course. Is this a type of assignment?
No this is not a type of assignment. If they are behind 4 months plus filing fees plus late fees you are talking $3-4K.
You negotiate with the lender to put a few payments on the back of the note to reduce your out of pocket.
Don’t put money down until they are out. Don’t tell the mortgage company you are buying the house.
So, to structure this purchase, you would help the seller avoid foreclosure by agreeing to purchase the property for a certain amount, go to the mortgage company and catch up the note, then proceed with the purchase contract. I would think they need to be out of the house before putting any money into the project to avoid eviction. Why would seller want to leave the house without the completion of the deal?
Well yes have them out before you make payments.