Advice needed: My friends multifamily is in pre-foreclosure. The amount of the mortgage is 250k. Arv of 280k+ and the rearage is 40k. Rental potential of 4000+/month and it does need rehab to get any tenants in. I want this house but have no clue how to get it. I do know the bank has to be spoken with so my questions are:
1. Who do I contact at the bank?
2. What do I say to whoever I speak with?
3. What are some ways to do creative financing to acquire this house?
4. Depending on the outcome and amount of the answers to the questions above. Is it possible for me to structure a deal with someone that can buy quicker than I can (because time is a matter in a pre foreclosure) and work it out to get it once I can while giving them profit?
Any and all advice and help is very much appreciated.
The bank will not speak with you. There is no contact at the bank for you. There is nothing that you can say and unless you can pay cash for the property, there is no creative way I can think of to finance a property with no equity, and deferred maintenance that is non owner occupied (more than likely), with no current cash flow.
The typical solution is to bring the loan current so, if you have $40 grand, bring it current. If you don't, you can have it listed (on behalf of your friend or through your friend) in preparation for a short sale purchase. It will have to be listed with an agent. That won't stop the foreclosure process. If you have an offer to purchase, submit the offer (The agent will submit the offer, not you) with data to support the purchase price below fair market value along with data to support the deferred maintenance. If you are outside of 36 days from the sale, that might stall the foreclosure while it's being considered.
I wouldn't worry about structuring the deal to where you can get the property unless you have the finances to do so now, without having to figure out a creative way to do it. That rarely works out and usually ends up disappointing everyone.