Posted by Jon Morgan on January 23, 2004 at 09:50:24:
See how this is all text book stuff?? It was the things that occured between the transactions and finding the owners that made the difference. The relationships that we built with those people. The solutions were really only options. Not every deal works out and sometimes no matter how badly you want to help them, the deal will fall apart for various reasons.
Pre-forclosures - Posted by lemonsensation
Posted by lemonsensation on January 22, 2004 at 19:06:38:
Is a pre-forclosure someone who has a either a state or federal tax lien?
or
Is a pre-forclosure someone who is behind in his mortgage payment?
The thing is, mortgage companies don’t make those infomation available do they?
Re: Pre-forclosures - Posted by Rich Hyams
Posted by Rich Hyams on January 22, 2004 at 20:44:10:
Foreclosing is a mortgage thing.
Once litigation is started there is a public notice of the begining of the foreclosure process recorded in the county register…I am not sure if all states, most states or just my state call this ‘lis pendon’
It is now on the public record. There are people who scour the courthouse for these recording and sell the data. I subscribe to a service, about $150 per month, I am looking for a better providor now.
Re: Pre-forclosures - Posted by Jon Morgan
Posted by Jon Morgan on January 22, 2004 at 21:30:21:
OK…THere are different levels of PRE foreclosure.
I am behind a couple of payments, but the bank hasn
t started foreclosing, so there is no public notice of my problem.
I am behind 90 days or more and the bank has sent me a nasty letter of defualt and has either started the foreclosure or is getting ready to.
I am well into the foreclosure it has been printed in the public eye, either in the public records or legal papers. I may vacate my house at this time or I am either going to do one of the following:
A. Put my hand in the sand and go down with the ship and wait to be kicked out of my home
B. File a BK 7 to stall the sale and make me judgement proof and liquidate my debts. Stay in the house as long as I want for free and if I want, I will file another BK if I have to, unless they have a smart attorney.
C File BK 13 and re organize my debts, so that I can start paying everyone back, which rarely ever works.
D. Find a company who says that they will work out a forebearance and pay them to work it out, even though I could probably do it on my own for free.
E. Give the bank the house back/deed in lieu (rarely happens
F. Find some investor who tells me he can buy my house and rent it back to me. I will have the option to buy it back later…hee he heee…(Never happens and the investor is taking a big risk at being sued or thrown in jail…)
G. Find an investor who wants to give me a creative solution to my problem and do it in a way that is a win/win…(hmmmm interesting)))
See the differences?
Also, do you see different ways you can connect with these people all the way up to the foreclosure sale??
There are quite a few, so think about it!!
Good Luck!!!
Re: Pre-forclosures - Posted by Rick
Posted by Rick on January 22, 2004 at 22:07:02:
“Find an investor who wants to give me a creative solution to my problem and do it in a way that is a win/win”
How about some examples…Thanks
Re: Pre-forclosures - Posted by Jon Morgan
Posted by Jon Morgan on January 23, 2004 at 24:45:21:
Rick,
Well, that all depends on how you want to approach this business. There are so many ways to do deals, I can’t mention them all here. Instead of me posting a couple of examples, I would rather know what your strategies are. For instance, are you interested in subject 2 deals, lease options/RTO, wholesale flips, equity splits, discounted notes, short sales, creative financing, being a bird dog, finding investors, selling retail vs wholesale, the finer points of BK, the finer points of judicial foreclosure, the finer points of non-judcial or states that do both, money partners, lenders, rehabs, construction loans, commercial pre-foreclosures, judgements, Hard money lending, predatory lending laws and lets not forget redemption vs non-redemption rights, how to get around the due on sale…
OK, my point being there are so many ways to go with preforeclosures. You dont need to be an expert in every aspect make money, you just need to find your niches and work them like crazy.
Giving a creative solution totally depends on the situation that the home owner is in and you can only help them and yourself when you find out what their needs are. It doesnt mean that you will meet those needs, but thru this sharing you will learn much about the home owner and their hopes, desires and pain. Being creative means becoming a friend who is their for them, drawing that line at being their patsy or fall guy. Help them realize what they need…
The creative parts about structuring deals have been laid out for us in countless books on preforeclosures and real estate investing in general…Those are where you will find the formulas to build your arsenals and then you go out into the real world and put them to use…
Re: Pre-forclosures - Posted by Jon Morgan
Posted by Jon Morgan on January 23, 2004 at 09:45:24:
Example #1 Found an owner in foreclosure. Found him a place to live with a private owner who was renting and willing to take the risk of a bad credit tenant. Paid up some of his rent for the next 3 months. Got him a moving truck. This all occured after get a short sale agreement from the bank.
Example #2: A vacant property. Found owner and got bank to short sell. Closed in 7 days using investors money. Owner recieved nothing, except for no foreclosure on his credit report, we got a 20k discount sold it and made 27k on the dea.
Example #3 Found owner that needed to move right away and had another house and financing contingent on selling the other property. They had equity, but couldnt move the property with a realtor. Property had about 20k of fix up costs to bring it to market conditions. Flipped property to local rehab guy who gave us 6k for our time, fixed up the property in about 5 days after he took control and I believe he made about 25k…
We tied it up for about 115K
As is condition- 120k
FMV after repairs 160k (it sold for this much)
Rehab costs: 10K
His loans costs were about 3k
We only made 6k, but it was quick and it gave us more reserve for our next deal.
Re: Pre-forclosures - Posted by Rick
Posted by Rick on January 23, 2004 at 06:54:41:
Ok,
Could you give me just two examples of how you solved a homeowners problem. Thanks