OfflineLet's first talk about what is occuring in our current world. Alot of smaller banks have failed over the last few years. What happens to their assets when this occurs? Well they get taken over by another lender. What does that new lender focus on...the performing assets most likely...why?...money now and not extra costs to try to pursue defaulted loan right!!!
So if these lenders focus most of their efforts on the perfomring assets then there are a lot of loans that they may not know about right!!! WEll this is occuring more often than not. How many of you know someone who has not paid their mortgage for well over a year or more. They are one of those people.
Now, most lenders require today that the mortgage payment includes the mortgage payment, insurance, and taxes. Okay, so if they are not paying their mortgage...are they paying their taxes?? Most likely not. Therefore there are a lot more properties going up for tax sale than not these days.
Okay, so how does this apply to foreclosures....well if they are not paying their mortgage and the mortgage company does not know that they have rights to collect ont hat mortage, so they have not filed for foreclosure...you just might be able to get a heads up on a foreclosure property that is NOT filed anywhere else. The current owners know that at some point they are going to lose the house because they can't pay the mortgage or taxes current. You get the list of properties coming up for tax sale and you start approaching these property owners prior to the tax sale.
What can you do once you reach them?
Well you can offer to bring their taxes current in exchange for doing a quit claim with you. You tell them that you are going to sell the property and you both will split the profit.
You could offer to pay ther taxes current in exchange for a quit claim deed and you give them some money to move out and then you sell their property.
You could offer to buy their home and then remove the tax lien during the closing.
You cold offer to buy their home and then assign the contract to another investor for an assignment fee.
Essentially, your creative due diligence can help you find properties that most investors do not know are out there and that these people are very motivated to sell.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Im not sure I'm following your stratagies. For examples, you mention:
"You could offer to pay ther taxes current in exchange for a quit claim deed and you give them some money to move out and then you sell their property".
If the property owner is suppose to pay the morgage that would imply that the owner does not have the actual deed to the house. How could the owner give you a deed to the house when in reality the bank probably has the deed? The owner doesn't get the deed for the house until he pays off his morgage.
I might be confusing the definition of "deed" with "quit claim deed".
Can you elaborate?
agreed this is too confusing and long...
Kardys you asked "If the property owner is suppose to pay the morgage that would imply that the owner does not have the actual deed to the house. How could the owner give you a deed to the house when in reality the bank probably has the deed?"
you receive deed to the property when you get the property financed via a mortgage, but not via a contract for deed. If you look at the land records and see the party who is paying the mortgage, you will see the same person who is responsible for the taxes....title was transferred via a warranty deed or special warranty deed typically at the original closing. They have the right to quit claim it then. Like I said the only time not going to be able to transfer deed is in the case of a contract deed or land contract - deed is conveyed after payment in full.
Quit claim deed is a document that facilitates the conveyance of title from one to another without removing the existing liens!!! Once you have title, you have control. You will negotiate with the bank or sell the property out right are a few of the options I mentioned.
The main thing to take away from this is that the tax sale list is a list of people who are delinquent on taxes and in many cases mortgage payments. In a lot of cases, there are people who are living in a house for 5+ years without making a mortgage payment there are instances where the lender will not have foreclosed on the property by the time it comes up for tax sale. The best option to pursue for this approach would be tax lien certificate property lists, because they are sold within shorter time frames from the time they become delinquent, thus you could have more opportunities to snag a foreclosure that is not listed anywhere else yet.
I hope this cleared up some things!!
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
derling, might this also be a way to find your dream house? ie., find a house with no other middle man such as another investor, thereby possibly negotiating the best deal...Just a thought.