Posted by whyK-CA on April 23, 2005 at 04:49:31:
It could be the owner have 2nd, 3rd, liens or judgement on top of the 1st, therefore he/she is shooting for 167K to cover. Also my bet is the same as Natalie that the amount is the original loan amount because it is nicely rounded up number. Hope this helps.
pre-foreclosure help - Posted by DSmith
Posted by DSmith on April 21, 2005 at 10:01:18:
I found a pre-foreclosure in my neighborhood that I would like to pursue. My deals to date have been REOs, so this is new to me.
Here are the questions I have.
First, I?m not really sure how to read the notice in the paper. There is a note amount listed of $116,000. Is that the most recent mortgage or is that the original mortgage? If this is what the people living in it now paid for the home, then it is definitely a good opportunity as homes like it are selling for about 160K.
Second, It is listed with a RE agent. I guess that means I would have to go through the agent to make an offer? Should I just treat it like buying any house on MLS and make a 70-75% of ARV (very little work needs to be done) offer? I think I could sell it fast for 150K.
Thanks for your help.
Re: pre-foreclosure help - Posted by Natalie-VA
Posted by Natalie-VA on April 21, 2005 at 17:41:29:
The note amount in the newspaper is most likely the original amount borrowed. It could be a first mortgage, a second mortgage or even a third. Most attorneys who conduct the foreclosure sales will tell you if it’s subject to another mortgage, but they will not guarantee title. That means you need to do the research yourself if you are planning on bidding at the auction.
Yes, you should go through the agent, but I agree with Rich that if this house were going to be so easy to sell, the agent would be able to do it. Just make your offer (scheduled to close prior to the FC date) and see what happens.
Re: pre-foreclosure help - Posted by Rich[FL]
Posted by Rich[FL] on April 21, 2005 at 14:40:43:
No idea what the numbers in the ad really mean without guessing. So, my guess is that it’s current balance including late fees and lawyers fees. You just don’t know until you go down and ask. Go to the courthouse and ask to look at the foreclosure file; here in FL, it’s public knowledge and it should be there also (wherever it is you are; you don’t say.)
You say it’s listed with an agent which tells me the seller is trying to sell it before it goes thru foreclosure. You don’t indicate their asking price but I bet it’s pretty close to market value; usually is when listing through RE agents. One of your only options appears to be to deal with the agent; find out as much details from them as you can such as what is current balance, and what will it take to bring the loan current (probably won’t find out; agents usually don’t know this info and say it’s “private” info; go look in the public file.) Then make your offer; the only thing that can happen is they say no.
Another silly question on my part…if you think you can sell it quick for $150k, what makes you think the RE agent who’s daily job is to sell houses can’t do the same for the seller? What value can you bring to the table that the agent can’t in this case?
Good luck!
Rich
Re: pre-foreclosure help - Posted by DSmith
Posted by DSmith on April 22, 2005 at 09:52:27:
They’re asking 167K for it, which is too much. Another one like it in the same neighborhood just sold for 165K. I think at 150K, it would sell fast. I don’t know why they haven’t lowered the price.