Urgent pre-foreclosure purchase opportunity

[Nat C.]

I had a call back today from a pre-foreclosure property I door knocked months ago. Property is due for sale this Friday and the owners suddenly want me to buy it. I really need help from the community on this one! The total judgement order is $60,000. The owner gave me a document dated August 17, 2005 stating that the outstanding balance is $43,000. My question is, can I work with the sellers to pay off the $43,000 or is $60,000 going to be definite minimum required amount now? The owners want to stay in the house and pay rent. The max they can afford is $700. The market rent is around $1200. The property is in reasonable condition and no repairs are required. I am willing to rent it for $700, whilst although a low cap rate, appreciation in the area is high. The property is currently worth around $105,000 so it's a worthwhile investment for me to get it below market value.

[Rick H.]

Nan, Nan, Nan. Of course your prospects want to stay in the house! They'll sign, do or say just about anything to avoid moving.

Of course, they'll give you a cry story as long as your arm why they're victims. 

However, once the pressure is off, and the money has gone hard, they'll be your problem. And then when they fail to perform as promised for you in your partner, you'll be the next bad guy. Are you ok with that? You ok with fighting them in eviction court? Worse?

You'd better have a strong stomach and tolerance for risk and be careful with title research. 

Everybody wants to go to heaven, but no one wants to have to die to get there.