Does anyone know how to approach the mortgage holder after you have negotiated with the homeowner on a pre foreclosure? Would this be considered a short sale? Any help would be appreciated.
There has to be a release form or authorization from the homeowner and if he’ willing to resolve his default situation with you. Mortgage holder will not give you any information not unless there’s an authorization from the borrower.
A short sale is when lender is willing to sell the property via the homeowner of course for less than amount owed.
Thanks for the help. Does anyone have a release form I would use so that I could negotiate with the mortgage companies of the pre-foreclosure home owner?
unless you take a week long course- willing to spend 80 hrs a week on the phone on hold. its pretty difficult to go blow by blow. each deal is different and generally case by case. I have over 6 yrs working short sales.
half a loaf is better than no loaf. don’t believe the hype that this is an easy process- getting lenders to take less than the house is worth -alot less is no easy task. if someone says it is -they aren’t doing it 2x amonth for 6 yrs on over 100 properties.
Go to the freebie section on this website. The site address is http://www.reiclub.com/freebies.php, download bill gattten pre foreclosure e-book that has the authorization form and other forms to use for free… Bill Gatten uses land trust specifically the NARS equity holding trust but it is very good info overall…
Another option is to buy Peter Conti and David Finkel book How to make a big money in foreclosures… it is like 18.95 at border book store. That book has good info in it
That will also give you good info on how to buy subject to the existing financing.
As far as short sales I believe they are done when there is not enough equity to do a subject toand the property is not all in good condition… You can still look to discount the debt service for the seller if he wants to work with you.
I will be working with a mentor on learning to do just that.
I would highly recommend you know the foreclosure real estate laws in your state before jumping in… since my experienced mentor who does it she comes across some challenging situaitons to say the least…