Posted by JT - IN on December 04, 2001 at 22:03:14:
Donald:
You were doing great until you got down to this:
“Remember, Pigs and Hogs always get slaughtered”.
You just creamed one of my most favorite sayings. For the record, the saying goes:
“Pigs get Fat, Hogs get Slaughtered”.
Don’t let it happen again! tehe
JT - IN
Pre-Foreclosure Question…Need Advice - Posted by Chris ( CO )
Posted by Chris ( CO ) on December 04, 2001 at 10:59:20:
I am interested in investing in Pre-Foreclosure properties and am vaguely familiar with the court house processes and dealing with distressed owners, etc.
My question is… Typically when speaking with these individuals in foreclosure, do you offer only to pay off their existing mortgage balance plus reinstatement costs, or do you offer 10-20% below fair market value for their home in addition to reinstatement costs? I am sure their probably are a 101 ways to close the deal, but I’ll pay cash to reinstate, with a cash deal. I would like to flip and sell the property asap, but am open to a L/O or and ILC. These will be nicer homes with an average market value of 150,000 to 250,000.
Those with pre-forclosure experience, how would you do it? What is the best way?
Re: Pre-Foreclosure Question…Need Advice - Posted by Donald munro
Posted by Donald munro on December 04, 2001 at 21:18:42:
What you really want to do is called a short sale. With the presents owners permission, you write up an offer to purchase the home for a price that is ?short ?of what is actually owed to the lender. Not all lending institutions will do this but many will because a judicial foreclosure will take time and time is money. The offer you make to the home owner is that you will take them out of the property and they don?t have to go Banko. However, if the owner has substantial equity, they might not be interested. People in a distressed situation often are not thinking clearly and are paralyzed by fear of the up and coming day of reckoning. Watch the legal notices in your local paper for notices of foreclosure and then contact the people. Knock on the door and tell them you read the notice in the paper and you might be able to help them. If they have equity, give them 5 or 10 K so that they can move and rent or leave town. Always be fair. Remember, Pigs and Hogs always get slaughtered.