I have a potential client, that is facing foreclosure on 5/16./ He is willing to allow me to take contraol f the property via lease option,. One problem I am a new inverstor, and he needs 8000 in foreclosure fees and back payments, which i do not have. What options do I have to help him, in order to help me take control of the property, without any money down. Any suggestions? I really want to make this deal , but without the 8K, or a creative way to stop the foreclosure, I am going to miss out on this deal. what options if any do I have
You may be able to get the bank to do a forbearance agreement but even then the banks want some money up front. I just got a quote of 30% of the past due balance which would be $2400 in your case. It will take some doing and time and the money all of which you seem to have little of especially time.
I have heard of getting TRO’s but the last time I tried to hire an attorney he said I did not have any grounds to get the judge to temporarily stall the sale.
It would be hard to even stop the sale if you had the $8000 because Monday is the 16th. Sounds like a lost cause.
Another option is for the borrower to file BK tomorrow or early AM Monday…
Also you could get the deed into a company you own and then file BK for that company yourself. I am not sure too about this scenario. It would get thrown out of BK for sure but would buy you some time. You would probably not find an honest attorney to do this for you. It may be legal but I do not know. It could be considered hindering a creditor which is a crime
sounds like there is not enough time, or oney b/c i and the seller both live in a different town than the house itself. what if i let ithe house foreclose what steps could i take at that point to acquire the property,
You will need to get pre-approved with a lender of some sorts, probably a hard money lender will work best. Then make an offer to the bank. It will probably be listed with a Realtor or HUD or VA or fannie mae. To buy it, fix it and resell it you will need to get a good deal. Hard money lenders loan 70% of the value after repaired and that is about all you want to have total in the deal because of the carrying costs and other sales expenses. If you want to buy and keep as a rental or lease/purchase to a homeowner you can afford to pay a little more but should stay about 80 to 85% of retail to get better returns. Make some equity going into the deal. Anyone can pay retail and have negative cash flow. It takes a good deal just to break even in most markets and super deals to make money.