House for sell - about to be in foreclosure

[Chloe Mariant]

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?

Thank you!

[Ken M.]

Quote from @Chloe Mariant:

Hello Ken and thank you for your reply!

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.