Found a house, now what....

Foreclosures, Short Sales, Tax Foreclosures
1

I found a house in the local newspaper in the foreclosure section I like quite a bit. It is in a good area surrounded by good houses.

It is a trustee sale, and the article states that it has an origial principal amount of 89,800 with a rate of 6.5%. It will be undergoing public auction on 2/8/05 and I must close within 15 days.

It has an assesed tax value of 126k, and recent comps are around 160-170k.

So here is my question…What do I do now…

Do I send letters to the current owner and try to settle now, or do I wait for the auction?

When i drove by the property today, there was another investor (i assume because he had out a map, and was sitting in front of the house), so I presume I am not the only one who saw the ad in the paper :slight_smile:

I know there are many deals out there, and it is a learning process, so I am not overly concerned with losing this one, but I would like to at least try and use it as a learning process. Any help would be appreciated.

2

You should make contact with the property owner and see if they are willing to sell!

If yes, your next set is to do a title search to see what other financial encumbrances my be place upon the subject property.

My first concern is the comps are stating the market value is 160-170k and the original loan is 89,800 we are talking 56% LTV, I believe your comps are skewed but if not you need to stop talking about this and jump on it.