HELP!

General Real Estate Investing
1

Hi everyone,

I recently ran into a preforeclosure property where Zillow.com valued this particular house at $514k while the seller owes the bank about $510k (1st & 2nd mortgages plus defaults) so obviously there is no wiggle room at all for a quick flip.

In this type of situation, what are some of my options to still be able to help the seller sell their house and preserve their credit? I would feel bad calling them back and telling them that there is no hope for you because you have no equity in the house.

I’m in California, by the way, if that helps.

2

You’re going to find a lot of these in CA in the near future. You can try to do a shortsale on the 2nd and see if that creates room for you to make money. Usually the 2nd is more flexible since they can be whiped out by the 1st after all the fees, etc.