Preforeclosure Deal - Advice Needed

Foreclosures, Short Sales, Tax Foreclosures
1

I am working on a pre-foreclosure where the lady wants to save her house. She needs $4000 to bring her mortgage current. She owes $44,000 on the house, but it is worth approximately $75,000.

My thought was to have her quit claim the deed over to me, in exchange for a $4000 loan to bring her mortgage current. Then, she would rent from me for 6 months (or less) until she establishes income again and can take back the house. In 6 months, she can refinance and/or pay me back plus a nominal fee. If she doesn’t make the rents or if she can’t take the house back, then I will be able to sell the house and/or refinance and make it a rental.

I have never tried it this way before. Can I do it this way??? Have I missed anything? Another question is if she quit claims the deed over to me, do I need to notify her lending institution?? Will they make me finance it right away??

Any advice is greatly appreciated as always!! Thanks in advance…

Shawn

2

there is a company that controls that kind of things. You will also get money for sending her there.

Brad

3

If you that in the State of Maryland, you will go to jail. You had better check the laws in your state.

You would do better to take a second lien position with payments and an amortization schedule.

If she can’t afford the payments, walk away before you are cited for HOEPA violations.

Call me if you have other questions. 410-493-0300