Hey guys. So, my wife and I knew there had to be something going on with our next door neighbors. Things have been very strange over there lately. Turns out, they're going into foreclosure. As a total newbie looking to do my first deal, how do I approach this the right way? The wrong way? Thanks ahead for the advice! FYI - auction is scheduled to begin November 27
Offer to help them move? That is about the extent of what you can do short of offering your neighbor money to reinstate their loan. You haven't offered any details about what it means to do your first "deal" so, you probably won't get anything of substance in a response from anyone. Approach what the right or wrong way? What do you mean your deal?
All that said...auction is scheduled in about two weeks? Nothing you can do at this point short of paying their loan off or reinstating them and even doing that, you (they) lose that right in about a week.
'Deal' as in wholesale. I'm beginning my search for highly motivated sellers. I didn't have to look too far to find potential ones. Look, I appreciate the advice. I'm simply asking if anyone has had any experience with situations like this. And I don't mean to sound insincere. We want the best for our neighbors and we're more than happy to personally help out if needed. With that said, do I also view this as a potential 'win-win' scenario from a business perspective or do I leave it alone? You've made it sound like there's nothing an investor can provide for them at this point.
If it's IN foreclosure (still in the foreclosure process) the auction doesn't "begin" on the 27th, it IS the 27th. If the auction actually "begins" on the 27th, then the bank already owns it and it is an REO, already has been foreclosed on, and the bank is auctioning it off.
You need to know which is the case, and if still owned by your neighbors, what the total pay off is.
How do you plan on Wholesaling a property you have no interest in. Do you know how much they owe? Are they upside down? Will the bank accept a short sale? Do you know how to do a short sale?
You might want to first start by seeing if the property is worth more than owed on the loan.... and then how to get the capital needed. If it's not then you might want to set a target price for the auction and get funding prior to the start...
@Wayne Brooks , thanks for clarifying. I guess I was assuming it was still in pre. As I mentioned, I'm brand new to this and just trying to learn as I go along. I know that it is listed online just as I termed it - "Auction to begin on Nov 27 @ 1:00". I have not been able to speak with our neighbors to gain any more specifics as they have been unavailable. Sounds to be too late. Thanks guys.
Well, "begins at 1:00 o'clock" is different than "begins on the 27th", so it may be the actual foreclosure auction. You have to learn to use your local county/court records to determine these things. In any event, just talk to the neighbor to begin.
@Wayne Brooks , Zillow only provided the date while auction.com included date & time. My neighbor did respond to my text from earlier and said she wants to talk about it after she speaks w/ her attorney which is sometime today.
If it looks like he has any equity, get a title search right away to make her didn't "forget" about any other liens. BTW, I assume you're looking to simply buy the property......if you're looking to wholesale, please don't....the last thing this guy needs is for someone to tie up his property in hopes of wholesaling it, not be able to do so, then bail out when he no longer has time to find a real buyer.