Posted by whyK-CA on April 07, 2005 at 09:18:39:
DaveD(WI), I got the picture. Thank you very much. -whyK
Pre-Foreclosure as my first house? - Posted by Chris
Posted by Chris on April 06, 2005 at 09:04:43:
Hello everyone,
I have a few questions on trying to buy a Pre-foreclosure directly from an owner in trouble for my first house. I currently live in an apartment and understand how the Foreclosure process works here in NJ. If I find a motivated seller and explain I am looking to purchase a home for my wife and I (with baby on the way…woohoo) would I be able to obtain the necessary financing (mortgage) to buy the house (assuming I have negotiated the deal already with seller). Basically, my question(s) are…how would I be able to pull a fast loan (mortgage) in 2 weeks or less to close on a deal? We have good credit (FICA scores of 720+) but very little to put down. I am wondering if a conventional mortgage lender would work this quick enough or do I have to go private lender? This is after my due diligence of course (title search, inspection, etc). Any help would be greatly appreciated.
-Chris
Re: Pre-Foreclosure as my first house? - Posted by DaveD (WI)
Posted by DaveD (WI) on April 06, 2005 at 09:59:58:
A private lender would indeed be fast, but usually very expensive upfront and month to month as well. Why not purchase it sub-2 instead? Then you could close tomorrow if need be. Either bring it current and you can re-fi at your leisure, or seek whatever discounted payoff that you can, being sure you negotiate enough time to get your financing in order.
Re: Pre-Foreclosure as my first house? - Posted by whyK-CA
Posted by whyK-CA on April 07, 2005 at 01:45:13:
DaveD,
I got a question for you. How is is different to do short before you become the owner and after you become the owner (with sub2)? Isn’t doing short after you become the owner a lot harder to accomplish?
Thank you.
-whyK
Re: Pre-Foreclosure as my first house? - Posted by DaveD (WI)
Posted by DaveD (WI) on April 07, 2005 at 07:35:40:
Mostly, what the lender is looking for is someone who can PERFORM, that is, bring current, pay off, whatever. They are not particular about who it is, but we try to keep it low key, if you know what I mean. We’ve done it both ways… for us we prefer to have as many of the elements of the deal under our control. Others have flamed me for that attitude. That’s OK.
Picture this: Not getting the deed, going through all the short sale steps, offer accepted (whoohoo) getting to closing… seller won’t deed. Think it won’t happen? Think again. The whole foreclosure process makes owners flaky… they can’t stomach the pressure and do (or don’t do) all kinds of bizzare things. Lotta work for a crappy ending.