What are all my options when dealing with pre-foreclosure homes in Houston(Missouri City)? I have a family member who is behind on payments (mortgage and taxes I believe). My investor is hesitant to work with my family member because he's afraid my family member will ask for whatever equity he has in the house. What should I do?
Any advice would be greatly appreciated!
Your family member will almost certainly get more money for the property if they sell it traditionally (via MLS) than if they sell it to an investor. Some reason not to go that route?
I would certainly not try to make even one dime from a family member. Not directly by getting involved in the deal. Not indirectly by passing it to someone else who's going to make money on the deal.
Agree with @Jon Holdman If there is equity, sell it on the open market. And yes, of course, they should seek to capture their equity, not just give it away.
More details around the mortgage please. How far past due? Conventional, VA, FHA, Freddie Mac? Payments, interest rate, amount owed relative to realistic sales price?
I'll ask him why he hasn't gone that route @Jon Holdman. Thanks for the feedback, I'm so eager to get my first deal under my belt that I didn't think of it like that. My grandmother is the one that keeps hounding me about it, saying that he's about to have to give it back to the bank.
@Chris Simmons I don't have any of those details yet, I'm still waiting to here back from him.
I will recommend that he go with an agent.
- oh and thank you too @Wayne Brooks
Reason I asked is that are loan modification options available if he's not too far behind. Maybe he doesn't have to sell. At least so quickly. Always options but the quality of the options is relative to how much time you have.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing