Pre-foreclosure under contract with road blocks.

[Brandie Lyons]

I have a home under contract that's in pre-foreclosure with no equity and the seller is upside down. I see two options for the homeowner, Short Sale or Owner Financing. Since this is my first contract I want to know the best way to handle this while also helping the owner walk away with something to help her and her children move. I've had investors contact me as if they were intrested, but then ask for an auction date. The home owner rather sell and move than refinance. Any guidance in this matter is greatly appreciated.

[Tom Gimer]

@Brandie Lyons Owner financing only works when the seller can advance the purchase money to the buyer and hold paper. 

When a seller is upside down and facing foreclosure 99%+ of the time the leads is dead in the water. Not only that, unless there are multiple mortgages on the property, the foreclosure sale likely wouldn't even be worth attending.