How does wholesaling a foreclosure work? I know most of the time you can sell before it goes to auction, but what happens if you have it under contract and it gets sent to auction? How can I be sure this doesn’t happen?
Thanks in advance
Allenayres83,
I’m gong to take a chance and try to answer your question. From what it sounds like, this wasn’t actually a foreclosue (which the bak has taken back already), but a pre foreclosure (In the process of the bank taking it back).
Is this correct?
Yes. Im talking about a home before it went to auction but one in the process of going. How do I know how long I have before it goes up to auction? And are there any other pitfalls to watch for when doing wholesale deals with a house in preforclosure and close to an auction?
Allenayres83,
My response to your questions is to speak with the owner first. Get all in their business without them knowing you are all up in their business. The property owner knows when the home is scheduled for auction, the amounts in arrears, the amount of the mortgage. I call this step figuring out the problem.
While figuring out the problem, it should create a big picture of whats really going on, establish time frames and you should soon be able to proivide a solution to your problem (getting a pre foreclosure before auction), the property owners problem (how to save them from foreclosure) and the banks problem (having to foreclose on the property owner).
Of course after you gather all necessary information and come up with a solution. Then you will have a deal that is safe from Auction and structured properly can be extremly rewadrding to you.
Again, I am not an expert in this area. But I have dealt with a few properties scheduled for auction and was able to save the bank, the homeowner from a headache and flip a property to my investor for quick cash. I hope this helps and should you have any questions let me know.
Its all about the solution for pre foreclosures.
Truthfully and honestly, you can’t pin point exactly when the bank will foreclose on the property. The only way you will know when the property is actually going to be auctioned off, is the seller will recieve a letter in the mail with a specific sale date when the property will be auctioned off. We call those letters, Foreclosure Sale Letters. Once again that is specifying what exact date your property will be auctioned off! If the owner never gets a letter in the mail with a specific auction date, the bank 99 percent of the time has not foreclosed on the property, but it’s still a time sensitive situation. You or no one else can’t predict when the lender will foreclose. So in all, if the seller hasn’t recieved that letter Foreclosure Sale Letter notifying you of an actual date when the property will be auctioned, then technically there is still time to save the house. There are situations where properties have gone 3-5 yrs without the lender foreclosing on them. Hope this was helpful. To your success! :smile