Can I really? Also, is this a typical deal?

Sorry, but nope! The amound of default is the amount that they're behind on the loan - so in this case they're $17k behind on their payments, and that may include legal fees that have been tacked on.

Also remember that FMV is just an estimate - you'll need to do your own research (or lasso a Real Estate Agent to pull recent comps for you), to make sure that's an accurate numbers. Values are still dropping in most parts of the country. I've seen things going down over $5k in the last month alone.

Notice of Default goes out when the owner misses the 3rd payment in a row. Notice of Trustees Sales goes out sometime after that - around here (oregon) it's usually a month or two before the auction date. These are still pre-foreclosure. Look for the auction date, and once it's passed, the bank has probably taken it back and it's now considered an REO.

And, check with your potential investors (end buyers) before you make the offers to see what they think is a good buy. Here, I was shocked to find that investors won't look at anything unless it's at least 50% below FMV.

There's lots of deals out there, don't be afraid to make those low, low offers. Also, look at end-buyers besides the investors. Advertise on craigslist for owner-occupants who would be thrilled to buy at a 20% discount. Respond to the housing wanted ads on craigslist too, and see if you can find someone who says they can pay a decent amount monthly in rent, and then see what's holding them back from purchasing. Be the solution to that problem, and you'll have an end-buyer, giving you lots more profit than an investor assignment.

On foreclosurealert.com you can click on a "quick view" button and it will usually tell you the current balance on the loan, and will always tell you the original loan amount and date. Then you can kind of guesstimate at how much they've paid off (usually it says, though, and usually they owe as much or more than they borrowed).

Good luck! This is an awesome time to jump in, and you're smart to start at such a young age! You'll do great! Keep coming here for clarification any time you need it. Everyone here is SO nice and they are great about getting you answers and help and support. And, if there's any way to swing it, I TOTALLY recommend joining the success academy. They will help guide you to getting in the game, no doubt about it.

Way to Go!
Tracey

FORCLOSURE....at that point there is no use in speaking to the "former" owner. It's now the Bank. Preforclosure is a different story.......contact away.

Sam