Hello. I am interested in buying preforeclosures. I started investing in real estate about a year ago and have a few rental homes. I have had so much fun with it and things are going great but the rentals are a long term wealth plan for me. I am now looking into quicker profits. I saw a post in here somewhere that mentioned www.realtytrac.com. I just finished checking it out and have a few questions…
Many of the houses are listed for upcoming auctions. Is this still considered “preforeclosure?” Is it still possible to contact the owner and negotiate with them to pay the missed payments and buy the house so the house is no longer on the auction block and they avoid foreclosure? Or is this the point where no matter what the owner does, he cannot avoid foreclosure? Is my only choice to get the owner’s written permission and contact the lender for negotiations or wait for the auction?
I am reading alot on how to structure a purchase and sale but I need to understand the “preforeclosure” process first.
With the owners written permission you can contact the mortgage company and cure the default by making the back payments or do a short sale. I have saved deals up to the last minute by meeting the trustee at the sale and giving them the cash to bring the loan current. Be sure to clear this with the lender prior to meeting the trustee. I could not get the money until that morning. I have heard Realtytrac was a bit slow but do not know first hand. There are companies that track the bigger counties and post the lists online. The charge here is $45 per month.
I love the pre foreclosure market, it gives you the best of both worlds - Helping others and making a profit at it to.
Contact your local county court house and ask if Notices of Default (Nods) have to be recorded as court documents. If the answer is “yes,” find out how you can search the new filings; if the answer is “no,” try one of the other options below.
In many of the states I invest in I search the Nod’s and do mail solicitation followed by a call and a visit.
Find out if the County Recorder has data available online. An easy resource to use is www.netronline.com. Simply click on “Public Data Online,” select the state you want, then click on the county,
Look in the “legal notice” section of the newspaper. Look for properties that are coming up for sale at public auction (sheriff’s sale, trustee sale, whatever), jot down the addresses, the property owners’ names, and the tax ID, or at least as much info as you can get from the ad.
Go to the County Recorder’s office to look up those properties, find the NOD on the title, and see who recorded it; you’re looking for a title or abstract company that you can work with.
I started my own business, I think I did all the legal things first. I am already incorporated, I have a tax id #, I with Dunn&Bradstreet. My personal credit is shot so I am trying to build business credit and am currently looking for vendors and lenders willing to make me a risk. I already have potential renters for the properties I want to purchase. I am looking for a hard money loan or a line of credit with a lender. I have a business proposal and financial plan already. Just need the capital to get started. So if anyone out there knows How I can actually purchase a preforeclosure or REO with no money down let me know.