New to Real Estate · North Carolina, USA · Member since 2025 · 27 posts · 5 votes
Hey guys!
I am trying to get into real estate investments. I have been passing this house on my way to work- been for sale for 177days.
Called real estate agent yesterday asking what was going on - supposedly its not move in ready so people arent buying. I looked at the pics, it looks perfect. So something is going on with this house but I dont know how to find what is wrong. Agent said the house is about to be in foreclosure but is not yet so I should hurry to put an offer if I am interested.
It is a 3bed 3bath nice ranch home, 1.5acres surrounded by AR land.
If you had this info, that the house is about to be in foreclosure, what would you do? Try to make a low offer? Wholesale? I dont think there buying and renting is an option in this specific case, cash flow would be negative?
So 1) check calculations and make sure property is worth buying for purpose of intent 2)figure out if its a deed of trust or conventional mortgage 3)make offer and bring the loan current asap
Kinda. You skipped a few steps, but that's the general idea.
First do step 1. You have to make an offer that the seller accepts, but with a pre-foreclosure, it has to be enough to cover paying off the loan, arrears, legal fees and realtor fees.
Deed of trust and conventional mortgage are something different, but they are related.
Personally, I wouldn't make an offer on a house pending foreclosure unless I knew what I was doing or had someone I trust walking me through it. But, that's me.
I am trying to get into real estate investments. I have been passing this house on my way to work- been for sale for 177days.
Called real estate agent yesterday asking what was going on - supposedly its not move in ready so people arent buying. I looked at the pics, it looks perfect. So something is going on with this house but I dont know how to find what is wrong. Agent said the house is about to be in foreclosure but is not yet so I should hurry to put an offer if I am interested.
It is a 3bed 3bath nice ranch home, 1.5acres surrounded by AR land.
If you had this info, that the house is about to be in foreclosure, what would you do? Try to make a low offer? Wholesale? I dont think there buying and renting is an option in this specific case, cash flow would be negative?
Thank you!
With a pre-foreclosure, you have to bring the loan current before the foreclosure sale date. The seller has to agree. The lender can dictate what options there are.
Apparently North Carolina is a Deed of Trust state. That means the lender can sell the property at foreclosure without having to go through a lawsuit.
It's all about if the property is worth buying for the purpose you intend, not so much about the current status, which does matter, but your reason for buying it matters more. If you are in a position to buy it, you would make an offer and have an inspection done.
You would offer what it is worth to you, just be prepared to have to negotiate.
So 1) check calculations and make sure property is worth buying for purpose of intent 2)figure out if its a deed of trust or conventional mortgage 3)make offer and bring the loan current asap
So 1) check calculations and make sure property is worth buying for purpose of intent 2)figure out if its a deed of trust or conventional mortgage 3)make offer and bring the loan current asap
Kinda. You skipped a few steps, but that's the general idea.
First do step 1. You have to make an offer that the seller accepts, but with a pre-foreclosure, it has to be enough to cover paying off the loan, arrears, legal fees and realtor fees.
Deed of trust and conventional mortgage are something different, but they are related.
Personally, I wouldn't make an offer on a house pending foreclosure unless I knew what I was doing or had someone I trust walking me through it. But, that's me.
So 1) check calculations and make sure property is worth buying for purpose of intent 2)figure out if its a deed of trust or conventional mortgage 3)make offer and bring the loan current asap
Kinda. You skipped a few steps, but that's the general idea.
First do step 1. You have to make an offer that the seller accepts, but with a pre-foreclosure, it has to be enough to cover paying off the loan, arrears, legal fees and realtor fees.
Deed of trust and conventional mortgage are something different, but they are related.
Personally, I wouldn't make an offer on a house pending foreclosure unless I knew what I was doing or had someone I trust walking me through it. But, that's me.
As you can probably tell I am a newbie so I will follow your advice! Thank you for your replies!
So 1) check calculations and make sure property is worth buying for purpose of intent 2)figure out if its a deed of trust or conventional mortgage 3)make offer and bring the loan current asap
Kinda. You skipped a few steps, but that's the general idea.
First do step 1. You have to make an offer that the seller accepts, but with a pre-foreclosure, it has to be enough to cover paying off the loan, arrears, legal fees and realtor fees.
Deed of trust and conventional mortgage are something different, but they are related.
Personally, I wouldn't make an offer on a house pending foreclosure unless I knew what I was doing or had someone I trust walking me through it. But, that's me.
As you can probably tell I am a newbie so I will follow your advice! Thank you for your replies!
I don't mean to scare you off of doing an offer, just have someone help you who has some experience. That's how we learn.
So 1) check calculations and make sure property is worth buying for purpose of intent 2)figure out if its a deed of trust or conventional mortgage 3)make offer and bring the loan current asap
Kinda. You skipped a few steps, but that's the general idea.
First do step 1. You have to make an offer that the seller accepts, but with a pre-foreclosure, it has to be enough to cover paying off the loan, arrears, legal fees and realtor fees.
Deed of trust and conventional mortgage are something different, but they are related.
Personally, I wouldn't make an offer on a house pending foreclosure unless I knew what I was doing or had someone I trust walking me through it. But, that's me.
As you can probably tell I am a newbie so I will follow your advice! Thank you for your replies!
I don't mean to scare you off of doing an offer, just have someone help you who has some experience. That's how we learn.
I get it! I wrote another post to ask how to find a mentor and partners around me. I am currently in NC in the Raleigh area. Thank you for your advice!