1st Pre-Foreclosure Visit = IRS/Bankruptcy/Etc... - Posted by Walt (FL)

Real Estate Investing
#1

Posted by BankRobber on December 05, 1998 at 12:49:34:

53K for a 75K house seems like a good deal to me, you just need to get rid of the 10k IRS (I am assuming you included the 8K in arrerage in the loan balance as would be appropriate). If FL does not have a post sale redemption period I would buy the property at auction then hold till the IRS’s redemption period expires in 120 days (it is very unlikely they would redeem). If I expected competion at the sale or there was a redemption period, I would give the current Owner $500 for Deed to the property and offer to let the Deadbeats and their Kennel stay there free for 2 months (Deed would be put in the name of some 3rd party). My Corporation would then purchase the 53K note from the Mortgage Co., withdraw the current foreclosure and start a new foreclosure at 63K.

#2

1st Pre-Foreclosure Visit = IRS/Bankruptcy/Etc… - Posted by Walt (FL)

Posted by Walt (FL) on December 05, 1998 at 11:44:30:

Hi,

Went to my 1st pre foreclosure house recently, owner had called my “I Buy Houses” ad that I am starting to run. Was unable to ?pre-qualify? them as She stated her phone was disconnected so I decided to go by and brought my wife.

2/2 House w/pool is worth $75k ballpark, loan balance = $53K, arrearage = $8K, IRS lien $10K, Filed Bankruptcy via a paralegal to stall FC (FC filed May 98 / last payment of $435 PITI = 2/98). File showed that IRS lien wasn?t ?effective?? til 9/96 which was a few months after the loan was originated( World Savings & Loan 4/96 @ 7.37%), even though it was for 1995 Tax year. The Mother and Son both worked but the mother was in/out and only part-time now. They wanted to stay in house but was stressed and desperate. Her belief was that when the Bankruptcy is discharged they will complete the FC and Evict, I think she is right. Do they put people on the streets at Christmas Time?

I realize that if I were able to pre-qualify them, I would not have gone out, but after going I wanted to be able to help them and their 5 pets. Since I am ?getting started?, I was not of much help and could only offer this advice: 1. Keep trying to get a loan 2. Start looking for another smaller place to live 3. Keep Living Free as long as possible and save any money they could. 4. I did not think I could help them but That I was going to check with an Associate who was more familiar with these types of circumstances/situations and to call me in a Week, I then scribbled my Name & # on my legal pad and ripped it off the page? (Some business Card!).

Quite often we envision people getting hostile but it seems that what is more likely is to encounter a situation that wrenches your Heart or Gut, or Both. This wasn?t too bad but they were good people and the Pets got to me a little bit.

Any Ideas, or suggestions that I may pass on when She calls?
Thanks,

Walt (FL) IBUYHOUSES@ij.net

#3

1st Pre-Foreclosure Visit = IRS/Bankruptcy/Etc… - Posted by Walt (FL)

Posted by Walt (FL) on December 07, 1998 at 24:56:02:

Jim, Dave, & BR,

Thanks so much guys, your input is appreciated very much. I like to keep the arrearage separate dave, as it seems to climb with time. Jim, thanks for the feedback, your advice and your time is valued.

Walt (FL) IBUYHOUSES@ij.net

#4

Re: 1st Pre-Foreclosure Visit - Posted by JPiper

Posted by JPiper on December 05, 1998 at 13:41:54:

Walt:

I think you have correctly identified the fact that there is not much a deal here for you. You might be able to get the IRS lien released (maybe), but even if you did, there still isn?t much of a deal here. Any deal right now would require approval of the bankruptcy court, but even this may not be much of an issue. And you?re right, once the property is discharged from bankruptcy, the lender will complete their foreclosure and ultimately evict them if need be. Chances are that the best advice is just what you suggested, save their money, look for a cheaper place, get ready to move.

I thought I would comment regarding your feelings about encountering ?a situation that wrenches your Heart or Gut, or Both. This wasn?t too bad but they were good people and the Pets got to me a little bit.?

Sometimes people forget that the term ?motivated seller? means that in all likelihood the seller is experiencing something that most of us would regard as heartwrenching. These are real people with real problems. You are to be commended in my opinion for being sensitive to this, and for having observed your feelings.

In the future you will undoubtedly encounter some hostility and/or anger as well. Understand that these are all valid feelings for the owner. The important thing in my opinion for you to realize is that while you can and should be sympathetic to all these types of feelings, that you don?t have to ?own? the feelings. To me the proper stance is one of observation. Observe the feelings of the owner, and your own feelings as well, but don?t become attached to them. They?re just feelings, and they will come and go.

There are no accidents. The fact that you showed up at the seller?s home is not an accident either. You?re there to learn the lessons presented by the encounter, and if you can acquire a property on terms that make sense to BOTH you and the owner, then that?s fine. If not, there are many other ways that the encounter could possibly benefit both you and the owner. Just showing up is a victory for you. Listening to the situation is a victory. Listening to your own feeling is a victory. Not being attached to the outcome is a victory too. Learning and growing is always a victory.

JPiper

#5

Re: 1st Pre-Foreclosure Visit - Posted by Diamond Dave

Posted by Diamond Dave on December 05, 1998 at 13:08:27:

Do you want to save the world or make money?

Everybody has a hard luck story. If you really want to help, make a fortune in real estate and then give 10% to a reputable charity.

DD