Hello; Recently my wife and i took control of a house in foreclosure. Well the owners dont care about the house at all, so they were willing to deed the house to me for $5,000.
what is the process of signing the deed over?
What is the quit claim process?
i need someone to walk me through this.
i’m sure i can sell the house for $600k. They owe the bank 540k. oh we are in brooklyn, ny.
I’ll throw my 2 cents in, not yet having gotten to your point. Even if the owner is in foreclosure, i dont believe they can sign the deed over to you for 5k. My understanding is you need to have the contract/warrnty deed/poa signed before trying to talk to the lender. This sonds more like sub2 than short sale. I’ll let the ‘experts’ finish explaining so I can learn as well. I believe that the bank wont let you have it for 5K as well. From your post, it seems that you dont have any knowledge of the foreclosure process? Thats ok 2, I didnt about 6 months ago, bought a number of systems so I am better prepared now to pull the trigger in '06!!! Good luck
Florida Newbie investor
steve
make sure you don’t give money to the seller until you know you have a deal with the lender (usually at closing). Get the payoff and reinstatement amounts. If you have a buyer lined up it may be cheaper to bring the loan current rather than paying it off. Check for clear title to make sure there is no liens and they haven’t signed deed to someone prior to you talking to them. for starters.
Good Luck,
Tony
They are signing the deed over for $5K. Are you catching up the loan also to keep it out of foreclosure as well?? Does the bank know your doing this??? They may call the loan due in full by paying off the past due and bring the loan current. Have you personally spoke to the bank to see whats required?? Did the seller give the bank written consent to deal with you? Are you signing a Lease Option with the seller to take over the payments so you can sell it or plan on assigning the contract?
this is where i get so confused…
In AZ a person can sell their home if they are in pre-forclosure
so if you pay them a down, do a wrap make it current, which will happen in escrow… you will then flip it
draw back i see is having cash - but if your exit plan is to flip it, which is easy here, then go for it
& get money back in a few mo.
or rent it as a L/Op require you down be the same as what you spent & let the tenants make the payments for a year or so
how far in the foreclosure process is the house? check ur state laws on redemption. if allowed, u can bring the house current but w/o that amount past due known, u don’t know where u stand. just on a $540k note the pmt is probably around $4k at least a month. they could be 4,5,6 mos behind so u’ll need to bring the loan current. can add up and eat ur back end profit completely up. what is ur exit strategy? flip, rent, sell to an end buyer? there are so many ways to structure this deal but it all depnds on how behind they are and ur exit strategy
u can take it subject to the existing financing but u’ll need to either pay the back pmnt or ask the bank for a forebearence, if the owners have not done that already. or u may be able to short sell this with lender approval. either way u need to get an “authorization to release” signed by the owners to talk to the lender about the loan. give us more info to begin with.