InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Foreclosure Codes 50 State Resource Data Foreclosure Glossary Foreclosure Statistics 60+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] You've come to the right place. Posted by Ward-CA- on May 29, 2003 at 9:12 AM In Reply to: HELP - Newbie needs some direction posted by J Chan on May 29, 2003 at 0:32 AM : Dear Ward, : Can you please suggest? : 1. How would you recommend to make the initial contact after finding the properties that have a Notice of Default? I knock at : 2 of potential homes(with equity) but no answer? Do I mail? do I contiually knock at the doors or? Any proven methods you know that works and what scares me most is distress homeowners might seem unstable and possibly threatening? : 2. And would you recommend me to offer to assume loans, provide some funds to the current distress homeowner(goodfaith money), or offer to assume loans, rehab then sell for a 50/50 split profit with current homeowner? : 3. I also used county research records & found a Single unit home after research with equity of at max. 200-250K GROSS PROFIT if I can assume the loan, rehab(+/-10K invest) then sell. I know because I have been shopping for 3 months for my personal home right in that neighbourhood and just a few doors down the same exact foorplan unit is going for $399K. : 4. What puzzles me is why would this distress homeowner not sell his home in 1-2wks after on market, clear it his debt, take the money(equity of about 200K easily) and run? : Anyways, this is the first I am trying this, it's actually an experiement to see if I can buy cheap in the neighbourhood I really like and possibly flip it for quick dough? : Appreciate your suggestions. =•=•=•=•=•=•=•=•=•=•= #1. Go knock at their front door. Don’t waste time and money mailing letters since they are rarely ever opened. The most proven method of approaching owners in default is going out to their residence unannounced. #2. You’ll probably want to take title subject to the existing loans rather than entering into a formal assumption of someone else’s loans. Sounds like you might be unaware of the legal requirements in this area. I’d suggest you go to our Foreclosure Codes link and read the 4 codes there. #3. County Records Research is only a listing of the voluntary liens against the property. You need to do research at your county recorders office for all possible involuntary liens too, such as IRS liens, abstracts of judgment, mechanics liens, etc. Once you have a complete list of ALL voluntary and involuntary liens against the property. Then given your value figure you should go through the Projected Net Worksheet (see Fillable Forms link) #4. Many people don’t think they have to sell their home in order to solve their foreclosure problem. With lots of equity they think they can refinance it instead. Once they find out differently too much time has gone by and there’s not enough time to sell. Browse through our Fillable Forms link and read and download the forms you find the law requires you to use (as recited in the four Foreclosure Codes). You might also search through the past postings to our discussion board under the key word “pre-foreclosure”. The search window is at the top of the Discussion board. That will give you over 200 previous discussions on the topic of buying property in foreclosure from the owner before the sale takes place. Hope this helps. Follow Ups: Re: You've come to the right place. John Chan 11:45 AM, 05/29/03 (5) Researching Liens At The Courthouse SeanW 2:34 PM, 05/29/03 (4) Equity Split Questions John Chan 5:44 PM, 05/29/03 (1) Just be fair handed... Ward-CA- 10:25 PM, 05/29/03 (0) Re: Researching Liens At The Courthouse John Chan 2:45 PM, 05/29/03 (1) Escrow doesn't do any title research... Ward-CA- 10:06 PM, 05/29/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Dear Ward, : : Can you please suggest? : : 1. How would you recommend to make the initial contact after finding the properties that have a Notice of Default? I knock at : : 2 of potential homes(with equity) but no answer? Do I mail? do I contiually knock at the doors or? Any proven methods you know that works and what scares me most is distress homeowners might seem unstable and possibly threatening? : : 2. And would you recommend me to offer to assume loans, provide some funds to the current distress homeowner(goodfaith money), or offer to assume loans, rehab then sell for a 50/50 split profit with current homeowner? : : 3. I also used county research records & found a Single unit home after research with equity of at max. 200-250K GROSS PROFIT if I can assume the loan, rehab(+/-10K invest) then sell. I know because I have been shopping for 3 months for my personal home right in that neighbourhood and just a few doors down the same exact foorplan unit is going for $399K. : : 4. What puzzles me is why would this distress homeowner not sell his home in 1-2wks after on market, clear it his debt, take the money(equity of about 200K easily) and run? : : Anyways, this is the first I am trying this, it's actually an experiement to see if I can buy cheap in the neighbourhood I really like and possibly flip it for quick dough? : : Appreciate your suggestions. : =•=•=•=•=•=•=•=•=•=•= : #1. Go knock at their front door. Don’t waste time and money mailing letters since they are rarely ever opened. The most proven method of approaching owners in default is going out to their residence unannounced. : #2. You’ll probably want to take title subject to the existing loans rather than entering into a formal assumption of someone else’s loans. Sounds like you might be unaware of the legal requirements in this area. I’d suggest you go to our Foreclosure Codes link and read the 4 codes there. : #3. County Records Research is only a listing of the voluntary liens against the property. You need to do research at your county recorders office for all possible involuntary liens too, such as IRS liens, abstracts of judgment, mechanics liens, etc. Once you have a complete list of ALL voluntary and involuntary liens against the property. Then given your value figure you should go through the Projected Net Worksheet (see Fillable Forms link) : #4. Many people don’t think they have to sell their home in order to solve their foreclosure problem. With lots of equity they think they can refinance it instead. Once they find out differently too much time has gone by and there’s not enough time to sell. : Browse through our Fillable Forms link and read and download the forms you find the law requires you to use (as recited in the four Foreclosure Codes). : You might also search through the past postings to our discussion board under the key word “pre-foreclosure”. The search window is at the top of the Discussion board. : That will give you over 200 previous discussions on the topic of buying property in foreclosure from the owner before the sale takes place. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction.

Copyright © 1997-2003, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455