my my questiong is can you sub2 a preforeclosure
example
A seller agreed to sell a free and clear property for $107,000 if I gave him $30,000 upfront. He’d carry $77,000 at 7% interest, or about $700 a month for 15 years.
It needed $20,000 in repairs and would resell for $169,500 with owner financing after it’s fixed up.
I borrowed the $30,000, plus $20,000 in repairs, plus an extra $20,000 for a total of $70,000 from a private lender. My lender got a first lien, and the seller got a second lien. The seller also agreed to subordinate to any new first loan on the property in the future.
The terms of the first were 13% and 5 points with a 3 year balloon. Payments worked out to about $760 a month. The total monthly with the first and second mortgages totaled $1,460. Market rent was $1,395.
I’d have a small negative cash flow, but I’d walk away from the closing with $36,500 in cash which included my rehab money of $20,000 (less a couple thousand for closing costs.) I put the house on the market for:
"$169,500 fixed up--make offer as is.
Owner can finance."
source:http://www.creonline.com/articles/art-214.html
can you do this with pre foreclosures also and this would be in the case that they want money to move and there is equity in the house???
thanks