Wholesale Foreclosure with no equity

7 Replies

Hi Everyone! I am new to real estate investing and I have jumped into wholesaling. I sent out my first set of mailers a week ago and received my first call! The seller is very motivated and he wants to save his credit from a foreclosure. I need some advice on possible options.

Here is some of the information about the property and his issue:

ARV: 150,000

Rents for 1450

Minor Repairs (cosmetic)

He owes 23,000 to bring the mortgage current

They will auction the property 5/10/18

Original Loan amount 132,000

Bank is asking for 145,000 due to fees tacked on

Can someone please advise on what possible options I have for the seller? Thank you in advance for any advice!

Originally posted by @Quincy Miranda :

Hi Everyone! I am new to real estate investing and I have jumped into wholesaling. I sent out my first set of mailers a week ago and received my first call! The seller is very motivated and he wants to save his credit from a foreclosure. I need some advice on possible options.

Here is some of the information about the property and his issue:

ARV: 150,000

Rents for 1450

Minor Repairs (cosmetic)

He owes 23,000 to bring the mortgage current

They will auction the property 5/10/18

Original Loan amount 132,000

Bank is asking for 145,000 due to fees tacked on

Can someone please advise on what possible options I have for the seller? Thank you in advance for any advice!

 "Fees tacked on" is a misnomer for the most part. Delinquent interest is more than likely the majority of why the bank is asking for $145M. Foreclosure costs are the only "fees" beyond maybe an appraisal or inspection here or there.

My two cents is you have no options here. You are too close to sale to stop it unless you find a cash buyer for full payoff, and I don't know of any investor that would be rushing to the bank to cash in an IRA to pay market value for a property.

His credit is already shot. Chances are good that his credit says, "Foreclosure proceedings have started".

@Quincy Miranda... This is not the best of deals, because the property doesn't really have that much equity. But you can do a short sale or Seller Finance. Hope my info helps??

Thank you! I am going to try seller financing, I would first like to see if the bank can bring down some of the fees they tacked on for the borrower to make this a bit more appealing. This was also suggested to me by another investor. Has anyone had any experience with negotiating with the bank to remove some of the fees from the foreclosure?

This is the second reference to seller financing on an upside-down asset I've seen today.

This owner can't afford the mortgage and is about to lose the home. They probably couldn't loan anybody $20 right now.

total waste of your time and effort...

only way to work on this is if you have significant equity.

you wont get the bank to lower their fee's no way..

but if you want to fool with it for practice or just because it could be a good learning experience for you  to realize you cant work with these sitautions this late in the game unless your going to stroke a check ..

Originally posted by @Quincy Miranda :

Thank you! I am going to try seller financing, I would first like to see if the bank can bring down some of the fees they tacked on for the borrower to make this a bit more appealing. This was also suggested to me by another investor. Has anyone had any experience with negotiating with the bank to remove some of the fees from the foreclosure?

 That's not gonna happen. That said, if you end up being successful doing the impossible, perhaps you may want to apply for the job to get Israel and Palestine to the negotiating table?

Lol Ron, gave me a great laugh! But I really appreciate everyone’s advice, I guess I am going to have to leave this one alone. I really wanted to help him out, would a loan modification be something I can suggest to him, that he may be able to do on his own? Or is it too late? 

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