How do I purchase a preforeclosure new home?

Question

Ok, I am looking for homes in Palm Coast Florida and after checking on foreclosure.com I found some houses in preforeclosure that are brand new. I am guessing these were people who were in the flipping business b4 the market took a turn for the worst and started slowing down rediculously. Now it is a buyers market here and I just want to know how it would work. Ok, I see this house on the website, I see that they bout the house for over $200K, I don't want to spend that much, can you offer someone in preforeclosure something really really low on a house. Like, if I want to pay only $165K and their loan amt was for $214K and are in preforeclosure, do I stand a chance? Will I only make a fool of myself to call them and ask them if we can purchase it from them for our said amt?

Answer 1

Normally you want to give them atleast the amount of the loan otherwise they might as well go into foreclosure because they are not getting any equity anyways.

I've seen the site. http://www.forelcosure.com they have tons of pre-foreclosures and foreclosures. What I would do is look for a home in your price range you wouldn't want to insult the home owner by not giving them market value OR the amount they owe.

Good luck

Answer 2

In preforeclosure stage, most of the time there are still people living in the home that are normally the owners. Your best bet is knocking on their door, calling them or sending letters to see if they would like immediate relief including possibly a lease purchase option.

If you call the owners of the property most of the time they will not fully understand the terms of the promissory note that they signed and are legally indebted to with the lender, so you could be wasting time. When in pre foreclosure you would have to "cure the loan" which is all payments in arrears including attorney fees and penalties, etc.

If there is a bit of equity in the property and the seller is very motivated then the first thing you need to do is work with a title company or request if the lender is willing to take a lower amount than what is owed on the home. Make sure you know which lien position is being foreclosed on, the 1st, the 2nd,3rd etc. if there is junior liens.

If the amount you're wanting to offer to the owners is lower than the lien that is owed on the property you would do better getting hold of the lienholder (the bank or private party) and negotiate with them especially if there is a sale date coming forth soon.

One of the best strategies though is to see if there are junior liens like a 2nd trust deed that is being foreclosed on and try negotiating with them to buy them out. In most cases this would put you in the driver's seat as you normally have 1st right of refusal if the 1st TD wants to foreclose and you just purchased the 2nd. You should consult a real estate attorney as every state can be in a little different (judicial or non-judicial state). It would also help to work with a local title company that can give you insight into what was recorded on the subject property or otherwise go down to your county courthouse to gather this information (it is public information and free normally).

There are numerous books at bookstores on foreclusre buying, and knowledge is where it is at!

Answer 3

There are still deals to make in the foreclosue market, You just have to be careful about where and what you buy.

Also the best time to buy, in my opinion is in the pre-foreclosure period. You are talking to the present owners with a problem of which you can now help out.

Under the circumstance you submitted, that would not be in your best interest. You are looking for a property that has equity left in it, not an upside down property as you indicated

You are looking for a person that can not make their payments due to some unfortunate reason.

To start out in this business I suggest you buy a few books located at your local book store about foreclosures and flipping properties, there are several good ones out there. You might also find the same books in your local library.

Now the other thing I suggest you do is purchase one of the midnight TV foreclosure guru's foreclosure programs. This will give you some legal forms that will assist you in your foreclosure business. They also offer you scripts to use on your clients. They also go over the numbers that you need to meet in order to make a profit, therefore not making a fool out of yourself.

In some instances you will only need a few thousand dollars if that much to purchase a property which you will learn to do in the books and the foreclosure program you purchase.

Once you have decided to fo into this field you will need to market yourself and find those that are in need of your service.

#1 You might subscribe to a service giving you a list of those that are in foreclossure. Then you can join the long list of those sending letters to the list you purchased.

#2 You can advertise in your local newspaper that you purchase foreclosures or is a foreclosue consultant.

#3 Find an area in your city work that area by sending out flyers each and every month indicating that you are a foreclosure consultant and would like to assist anyone that is in foreclosure.
For this to work you will need an area that has at least 5000-10,000 homes.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 4

Usually, when someone on this site asks "I'd like to make a low ball offer on a house.....", I tell them not to. Your situation is special though.

Investors who bought houses like the ones you're looking at are numbers people. They do not take the sale of their houses as personally as do your parents and mine. With that said, yo can offer whatever you want, and see if they have the savings to bring to closing and are willing to take that much of a loss on the house.

What is the house actually worth right now? If it's only worth $175 now, a fast $165 might get it. I do hope that you either have cash, or are FULLY credit approved to buy in that price range. If the house is worth $200, then I doubt that $165 will do it.

Answer 5

get a realtor to show you houses.you should be able to pick up a hud homme for 30 to 50% off the value. if you don't get a house right away keep looking and keep placing low bids. i'm doing that right now. oh yeah what you bid on the house is what you pay the realtor takes up to 5 % out of that you decide what she gets

Answer 6

a no documented mortgage in ultra-modern international typically calls for no less than forty% down, so to your case now not definite wherein you are living but when you'll discover a situation for less than 75K you will have to be in a position to