Hello I have a small question on pre-foreclosure.
I am a new Investor in the real state market. In the event there is a good deal (current owner has equity). Would it be wise to get total new loan financing to pay the amount current owner owes to his/her bank. In this case the new buyer will face closing cost associated with the new loan, and if I am correct, it just sounds like a purchasing a new house. Would you then add all the values like (current mortgage amount owed, amount to bring the loan to current value, part of equity the new buyer pays to the current owner) and then make the decision of owing the property.
I guess my real question is I have seen many times ppl talking that they assumed the loan. Is this correct that all loans which are in default status can be assumed by the new investor (depending on credit…etc). Wouldn’t this be a better way since there will be no or less closing cost associated as compared to getting a new loan. Any tip would be appreciated.