Quick question for you experts…
I got a call from a lady today who is VERY motivated. Her home goes into foreclosure March 4, so she just wants to sell to avoid ruining her credit.
According to comps, house is worth about $105k, conservatively. She’s behind $6k, with a total of $56k in the existing loan.
I am a wholesaler. I just put my first three houses under contract today (If you’re wondering how I got three, all three are owned by the same lady :biggrin). What can I do to get this deal before it goes into foreclosure? I have no clue… :banghead
Go to www.HOPENow.com and if her lender is one of the “alliance members” then she can call them to pause her foreclosure for 30 days. 1-888-995-HOPE Even if her lender is not listed, she should try anyway since some of the smaller lenders have sold the loan to a servicer that may be on the list.
She will have to tell them that she wants to do a loan “modification” and that a foreclosure is scheduled for March 6. They will ask her about her financial hardship and document her finances (the call takes about 45 minutes).
At some point prior to the 6th she will get a notice, either by mail or pinned to her door that the foreclosure is “postponed.”
If she has a ratified contract to sell her property then the lender might (temporarily) back off. She needs to talk with her lender and tell them she has a buyer.
Of course if you have buyers lined up then get it under contract, require a 72 hour close, bring your buyer to your local hard money lender, close the deal and pay off the lender.
BUT - A word of caution for you, she might owe more than she is telling you AND/OR there might be other liens on the property.
Her mortgage is through Countrywide, and she SAYS she has no other liens on the property. I told her to call the HOPEnow number and speak with them and, if they offer no help, to call Countrywide. Hopefully, this will work to hold them off, while I line up a buyer.
Thanks again, and if I can make this one happen, I owe you two a beer!! :beer
You’re in luck. Countrywide is one of the alliance members. Send me an email and I’ll forward you the forms they use and the stacking order for the short sale package.
If you can help her save her home from foreclosure, I think you will find the reward of helping someone in distress an awesome feeling versus trying to make a buck first. Bless you and good luck!
I agree with you there. I just sign my first deal a couple days ago. At first my mind was set on the money and I how to make more of it on the deal. After meeting with the motivated seller, It became clear to me that my ultimate goal at that point will be to help her out. I realize you can feel a lot better knowing that you helped someone. In my situation, I will be helping 3 people, the seller, my tenant-buyer and yours truly >MOI.