Does anyone know if it is possible for me to offer seller financing in a pre-foreclosure situation?
I have negotiated a price with the person going through foreclosure and, because of all of the new lending guidelines, am afraid that less people will be able to qualify for a loan. Can I still offer seller financing since I “technically” am not holding the note?
:cool hey anything is possible it is all in how you put it in place (ie )words and money !!! like a contract for deed type deal where you basicly make the mortage payments and your down is the back payments ?? OR you work out some other type of deal just as long as the main mortage is covered anything is a do words and money !!!
THEN if you want to sell to some one else the same would apply your note with the first person ( seller to you ) would have to be paid off or at the least covered or like a house of cards you all fall down and you would be in the middle holding two empty bags
I have personaly done a lot of deals this way or some form there of and have only been 1/2 burnt once but had alegal way out and had to sue the jerk who screwed me
If I am able to do seller financing in this scenario, if I have enough of a spread, would I be able to sell the note to someone who purchases notes at a discount?
:cool yes you could but keep in mind this there will be a discount and how old or new the note will in most cases make the discount !! MAKE sure all things are covered and then see what falls out this would be your money and sometimes it is not much but better than a zero !!!SOMETIMES note discounts are and have a lot to do with the buyers fico score as well so keep this in mind as well >>> a note sale could take up to 30 days to get complet. THIS in and of it self could be a problemin pre-foreclosures !!! HOW much time you have with one is mostly set by how soon the owner comes to see the foreclosure fixer is not comming and they need to do something >>>>> sometimes this leaves you with little or no time
So how would I go about doing it? Put it in a trust? Do I sign an option with the seller then a seller financing contract with the buyer? I know there has to be a way to make this work but I just don’t know the proper wording to put in the contracts.