Confused about preforclosure process

Foreclosures, Short Sales, Tax Foreclosures
1

I am a newbie so bear with me!

So i have found a house that is being forclosed on. I called the guy and he is interested in selling his house to me. So as far as i know i’ve done the hard part. From this point on is where I am a bit confused. Do i meet with the guy, inspect the property and asses its value? After that How do know how much to offer him? I think i am about confused about how you actually purchase the house becuase if he has only (for example ) 30K equity in a house worth 100K how do i know how much to offer him? maybe someone can explain to me how you actually purchase the house? im confused.

2

Hey,

have you ever thought about bringing the loan current and asking the seller to stay on the loan and have him deed you the property. That way you do not have to bring in new financing. If the seller knows all well that he cannot make the payments you can get the house subject to the existing financing and maybe give him the money to move out.

3 
  1. HEY       or have you thought of a  owner  mortage  with a cash out to the owner in one year or less ???
4

Please explain

5 
  1. OKAY      the short side of it   you get the person in the preforclosure  to sell you the home on a owner held note /// mortgage   for around  80% t0 may be 90% of apprasial      you then sell the note  or refinance it in a year or less     i have a deal with acompany who buys  these notes all the time !!
6

that’s awesome information!!! ;D It’s just that I need to find these type of deals. I havent been so successful down in new orleans

7
  1. HEY you can find deals any where this that i have been talking about works with for sale by owners and all types of things the most inportant part is the apprasial and it has to be with in the last 4 months is all
8

I just came back from a REIA meeting here in Charlotte, so let me explain what i learned. maybe it will help.

After learning how the foreclosure process works, i realized that its a dirty business.

Basically once you find the foreclosure and a home owner willing to sell you his property this is what you do:

  1. you find out the value of the house
  2. do all you inspections, background work (leins, insurance, taxes, etc… that the guy owes)
  3. See how many mortgages he has on the house (hopefully no more than 2)
  4. how much equity he has in the house (lets assume that he has 30K equity in a 60K house)
  5. you go to his lender and make an offer to the lender (lets say 15K)
  6. The lender will accept or deny the offer (lets assume that they accept the offer)

if they accept that offer, they will have recieved 45K in the house – 30K in the home owners equity + you 15K… so at the end of the day you bought the house for 15K plus closing/inspection/misc costs which should make you the owner of the house for less than 20K, nice chunk of change to be made…

thats the process, right?

9

what if the seller is asking for the market value of the property? then what do you do?

I guess what I am trying to say is most homeowners are not just trying to get out of foreclosure they want to make a profit in the process.

In your senerio, what happens to the other 10,000 the home owner owes the bank?