Involved In Real Estate · Oklahoma City, OK · Member since 2014 · 17 posts · 1 vote
I am looking at a house that is in the foreclosure process valued at $375k but only has $280K left on the note.
It is about to go to Sheriff Sale in the next 45+ days. I am currently in a mortgage for my house that I listed to sell today for $360K. Fingers crossed I can sell it very quickly.
Question 1 - anyone have advice/experience on catching this before it goes to sheriff sale? Its with Fannie Mae right now so not sure if I could call someone and make a deal.
Question 2 - if it goes to sheriff sale, I dont have the $280K (hopefully no more) in cash to buy so what options would there be?
I thought to borrow the $280K long enough to buy, repair enough, and refinance back to FHA after selling my current house and then pay off borrowed amount plus fees/interest associated with that. Not sure if that is a crazy scenario I made up or is possible.
Rental Property Investor · Charlottesville, VA · Member since 2012 · 1k+ posts · 726 votes
10y
@Rusty Knowles You can usually catch a house in pre-foreclosure, make an offer and stop the sale. But the fact that you say it's 'with Fannie Mae' makes me think it has been foreclosed already. Generally you'd be negotiating with a home-owner in pre-foreclosure not a quasi government agency.
You can borrow hard money to accomplish this if it'struly a good deal.
Rental Property Investor · Charlottesville, VA · Member since 2012 · 1k+ posts · 726 votes
10y
I've never actually borrowed hard money so I'm not the one to ask, but search on here and you'll find lots of info on it. I've been quoted 9-15% with 2-5 points up front so it is expensive for sure.