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Re: How to buy a Pre-forclosure - Does anyone know how it works?

Posted by Anthony on March 17, 2005 at 13:26:58:

In Reply to: How to buy a Pre-forclosure - Does anyone know how it works? Posted by liz on March 16, 2005 at 21:05:59:

:lizYou are right. You do contact the current owner, talk to them about there problem, offer to take over their mortage and most of the times they dont want compensation. all they want is out of the burden, the stress, the bills, and just plain feed-up.. It seems to good to be true... Yes it does, but its true. and yes There is more involved. you must have a contract, a Guarntee deed prepaired, and every property is different. You say you have seen posting for housese assessed at 300k with a loan amount of 50k and you want to know what that means. it means they owe 50k could be a first note, a second, a third and on and on. check with the title company. request for a preliminary title report. find out what the house is worth. call a realtor and as him what the neighborhood is going for (dont give him the address) he will go out and get the listing. pretend your trying to sell your house in that neighborhood. tell him you get back with him if you decided to sell. He will provide you with an estimate of value based on sqft. if indeed you find that there is but 50k on a 300k house you have just found a niddle in the haystack. What do you offer? Find out! How? contact the owners! What do i say? It all depends! depends on what? Your approach. What do you Mean? I mean are you going there to help. are you going there to do a win-win offer. are you there to take all you can take. Its all up to you. If you you want to make this work, be understanding, these folks are in deep do-do and they know it, they hate it. and they are being boombarded with all kind of letters, rude people knocking at there front door. so just be sensitive to their situation. and yes you can make a lot of money. If you find a property that is a jem. you will need assess your next step. what am i going to do with it? do i have the money to bring up the payments? is it worth bring up the back payments? Is the interst rate on the existing loan a loan worth keeping? What is the montly payment? what can i rent it for? and on and on....anyway if you do find something worth persueing and you dont know what to do email. me. i can walk you thru it or we can partner up on the deal and we can do it together, it only takes doing one deal or two and then your off and runing buy yourself. email me at anthonycelis@hotmail.com

I have found some good homes that are going into forclosure and have a trustee sale set up a couple of months from now. I want to try and purchase the home before the trustee sale. Do I just contact the current owner and offer to take over their mortgage and compensate them well if they deed the property over to me? I have seen some posting for houses assessed at 300k with a loan amount of 50k. What does this mean - can I get the property for 50k + whatever I have to give to the seller to have them deed it to me? It seems too good to be true...there must be more involved. Does anyone have any understanding of how the pre foreclosure process actually works? I would greatly appreciate and knowledge or insight you could pass on.: Thanks!

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