Preforeclosure

Hi, Don! Welcome!
You can take over their payments...Purchase "Subject to" their existing mortgage.
You would then lease it to an end buyer.
Haven't done any of these myself.
There are Forums you can check out here on DG.com and I believe Dean discusses the details in his Foreclosure Finder materials. It's a "no money" strategy. ~Hope this helps!

Hi Kat, thanks for the reply! I will check out this approach. Very nice to know there is a support group out there willing to help.

Be sure to fill out your profile so we know who you are, theres been alot of spam lately and some ppl have been getting accidentally pulled the plug on...

Just updated, thanks for letting me know...

If they are upside down on their loan $130K, DO NOT do ANYTHING with this deal other than a short sale!!!!!

Karen

I really appreciate the feedback.

Thx,
Don

I'm with Karen, this would have to be a short sale or nothing. Since you're brand new, I'd say move on. There are much easier deals to work on out there.

Unfortunately, Karen is probably right. $130k is ALOT to be upside down and a Short Sale might be the only answer, but you haven't provided enough info to say for sure. Questions:

How much is the property worth? If its worth $2 million, $130k isn't so bad all of a sudden and Subject-To might work. How much would the property rent for? And is that amount HIGHER or equal to the mortgage payment? Fixed-rate or adjustable? How far behind are they on the payments? Has a date been set for the Foreclosure Sale and has the homeowner even received a Notice Of Default? Why is the homeowner in foreclosure? Was it a temporary problem, or one that can be fixed soon? Do they even WANT to sell or are they trying to stay in the home? Here's a wacky question: Does the BANK even want the property? Sometimes they don't. I personally know a guy that has not made a mortgage payment in over 3 years. The bank sold his mortgage to another bank about a year ago and bank #2 has not tried to foreclose either!

If they want to stay in the home: Google "loan modification in california" and refer them to a loan modification company. There's no upfront cost to the homeowner and having a pro do it will WAY increase the chances that it actually works. Still, no guarantee.

If they want to sell: Google "short sale negotiator in california" and refer them there. Again, no guarantee, but having a pro do it WAY increases their chances.

You might be able to get a referral fee, but don't plan on it,(I don't know the laws in CA)and at least you gave the homeowner some options they probably didn't even know they had. They'll be thankful for that and hopefully call you first if they are looking to buy in the future

Hey, Thanks for the XMAS gift of KNOWLEDGE! It's the BEST PRESENT ever! I met a mortgage broker who is looking forward to working with me. Now, I can send her info in a format that she can accept. Thanks so much!

Lot's of great information. Even though I am just beginning, I figured this opportunity was a long shot. However, it prompted me to do my first forum post and get a variety of inputs, thus I still benefited a lot in terms of knowledge.

Thanks to all,

Don

See now? I've learned something new.
Upsidedown = Short sale

Thanks, Karen, Michael, E, Nancy!

Didn't intend to misdirect you Don. :\

If they are upside down on their loan $130K, DO NOT do ANYTHING with this deal other than a short sale!!

May I ask why Shouldn't she do a "Subject to"?

When you do a Sub2, you are taking over the property "subject to" existing financing.

Let's just use an example. The house has depreciated since the seller first bought it and is now worth $100,000. The balance on the loan is still $230,000.

Is it a good idea to take over their loan? Does that help clear it up a little?

Karen

the Round ones sometimes fit the Square ones

Hahaha Indeed, they sometimes do. Give that man a kewpie doll.