Theres a few signs around my area that say “AVOID FORECLOSURE!!!” and give a phone number. Basically these people are trying to score some pre-foreclosures right? I’ve read a few articles on it, but they are pretty unclear on whats involved.
Do you have the occupants contact the lender and see how much they owe and then you make an agreement with them to pay it off, so their credit is saved and you can give them some money as an incentive? While you get the house of course… It does seem a bit pushy to me, and my feelings may get in the way of being successful at that, but at the same time it is true that all these people would get in the end is a eviction notice and ruined credit, but atleast they can save their credit to get another house…
How late in the foreclosure will a lender let it be payed off? Right up until the auction date or just before the foreclosure is listed? Or do you not even deal with the lender and just buy their home? What are the other technicalities with this? Any clarification would be appreciated…
Hi Alex,
By the way, my name is Alex as well. Anyhow, related to your questions, some of these may vary based on what state you’re in …and not to mention what bank you may be dealing with.
Preforeclosures are just what they are, you work with the seller/owner of the property before it goes back to the bank. However, should the numbers not fit even the standard flip/wholesale profile then, at this time you may have to work with the bank for a short-sale.
As for these signs in your area, there are legit business that try to help the homeowner save they’re house. It could be an attorney, it could be someone that just provides their knowledge and services to stop the foreclosure (however, many times these are just done temporarily) as a consultant service (not always ideal nor have the true integrity of providing this service; and/or three, it could be a consultant that provides this service by working with both the home owner and the bank to acquire the note or put the homeowner on a forebearence program.
Preforeclosures, in my idea, are the best forms of doing deal since the homeowner/seller is more flexible and can work with you to get a solutions done and make the opportunity a win-win for both of you.
Well, I hope this helps out, and good luck!
regards,
There is nothing pushy about trying to help someone avoid foreclosure and there is no reason to let your feelings get in the way of being successful with pre-foreclosure transactions, especislly if you are offering payoff plus additional money to help the folks get on with the rest of their lives…You would be doing them a HUGE favor! What are the options otherwise? They lose their home, no funds to make other living arrangements, home may not sell at auction and end up selling for less than payoff when in REO status, lender goes after defaulting party for balance due…It should make you feel good that you are trying to help someone and it should make you feel really good if you know you can flip the property and put some cushion in you bank account!! Am I right?