How Do I Wholesale a Pre-Foreclosure Home That Has a Lawyer?

[Nigel Witherspoon]

I am looking at a few homes in the area that are in pre-foreclosure (laws in SC appear to not have anything against investments in pre-foreclosures). However, when I run across them on a back-end search, they all have Law Firms attached to them. Is it possible to wholesale the contract even though the original home itself has, what I'm seeing, a foreclosure lawyer on it?

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Originally posted by @Nigel Witherspoon:

I am looking at a few homes in the area that are in pre-foreclosure (laws in SC appear to not have anything against investments in pre-foreclosures). However, when I run across them on a back-end search, they all have Law Firms attached to them. Is it possible to wholesale the contract even though the original home itself has, what I'm seeing, a foreclosure lawyer on it?

The lawyer is hired by the lender to do the legal work for the foreclosure. It's perfectly legal to bring the loan current or pay it off before the sale. The lawyer is the one who can tell you how much is necessary and by what date the reinstatement must occur. 

You would be taking an unacceptable risk, in my opinion, trying to wholesale a property that is getting close to a foreclosure sale without first bringing the loan current. This means giving a check of $5,000 to $15,000 or more to the bank to get them to cancel the foreclosure. People are normally 6 payments to 12 payments behind, have unpaid property taxes, late fees and legal fees. It all adds up.

You will need the homeowner's cooperation to pull it off. I don't know specific foreclosure laws for S.C., you should learn those if you want to play in that arena, but I've bought houses in pre-foreclosure out west for 25 years. It's profitable if you have cash to work with and learn the procedures.