Sub2 on Preforeclosures - any suggestion

General Real Estate Investing
1

Hello Fellow Financial Freedom Seekers:

I took some time off the RE mobile. However, I’m gearing to return. So I have some questions:

  1. What are some of the effective techniques currently being utilized in this market–particularly in relation to upside down mortgages and those in preforeclosure? How would you go about handling a sub2 on upside down properties, or properties in arrear/or in foreclosure?

  2. I am considering the following strategy, and I would like inputs, critique and advise.

I looking to target upside down and preforeclosure for sub2; and hire a proven/efficient loan modification firm to handle the loan mod. So for instance, let say, a home’s in foreclosure with a loan of 200k (with CMV - current market value of 90K). I would take it under sub2, then have the loan mod to something close to or under the CMV; then do a lease option or seller finance above the 90k; or even hold as rental for cash flow as an exit. what do you think about this strategy?

Is this currently being done by others?

Thanks to all who contribute to this discussion.
MB

2

This is very interesting. Have you done one yet? and who are you useing for a loan mod company. I really like this idea if it will work