Preforeclosure question

Foreclosures, Short Sales, Tax Foreclosures
1

Hey All,

Looking into some preforeclosures and had a couple questions.

I’m going to drive bye a few this week and if the neighborhood and houses are decent then I’m going to try and contact the Homeowner through the mail. I’ll work something out with them making them an offer that satisfies both of us subject to appraisal and Title search.

Now if the numbers work and everything, what is the process? Should I do the title search first? using a service like titlesearch.com maybe? then if no other liens second mortgages come back, then get an appraisal/inspection?

After that, how do I proceed? Is it best to contact an attorney and he will handle all the title insurance, the deed etc?

Thanks

Jordan

2

Hi lightbeing,
From what I understand of the process, you must first talk to the homeowner first. Build a rapport with them so you can get them to sign an authorization letter so you can talk to the bank. Then if your talks continue well, get the house under the contract. I’m a newbie at this. Bought a number of courses. So I am in the learning the process still. If I’m wrong about the first few steps, anybody please correct me. Tomorrow I am going to put my plan into action. Many systmes tell you that you whould also put together goals. I started mine, and was going to implement starting 2006. But I went over the foreclosure list in my area and decided to let my actions speak louder than my words. LOL
steve

3

I do preforeclosures.

  1. I never look at the house before I talk to the homeowner. I want to know if there is any equity. The general condition of the house. The ammout past due. What they think the house is worth. And how the homeowner sees the foreclosure being resolved. Do they want to keep the house? Do they just want to get out and save their credit. Do they want some money. What lead to their getting behind. And most important HOW MOTIVATED ARE THEY.

  2. If it looks like there might be a deal there I go see the home owner.
    This is when you look over the house and the neighborhood.

  3. If you come to an agreement, write it up and get it signed with a contengency on a clean title search.

  4. I rarely drive around looking for houses. The secret is to get them to call you. And that’s where marketing and advertising come in. Everything depends on it. It’s the best use of your time.

4

Even if there is no equity in the house, that is why the banks discount the mortgage so you create instant equity. Sounds like you are making it harder for yourself to find preforeclosures. I’m still learning and marketing is great once you get your machine rolling. BUt there are still quite a few of us newbites having yet to pull the trigger so to speak. Have a great day!
steve