I have located a property in pre-foreclosure. It was listed in the foreclosure listings in our local paper this past Monday. Price shown in records area of paper is $65,000. Is this the amount the mortgage company is attempting to collect? I drove by house, it looks empty, I feel it would be a good home to own or wholesale. Homes in this area, with less square footage, are listed at $100,000 - $120,000 range. I would like to contact owner and make an offer to purchase. I am thinking of offering to purchase at $65,000 and first try to assign to an investor for $75,000. Since I am in Texas, I am unclear of all my options. I understand their are new restrictions on lease options.
Any advice on how to handle pre foreclosures in Texas would be appreciatted. I plan on going to court house this next month and try to find properties before they are listed in newspaper. I need to generate some cash now. I would eventually like to buy and hold rental properties for long term income.
You’re getting good advice. The only thing I would add is to check whether the foreclosure is on the 1st lien or not. If the foreclosure is on the 2nd or 3rd lien, then the price of $65,000 might be way too high. But, in my opinion, that’s where you start. And it sounds like what you have here.