Foreclosure and preforclosed

2 Replies

Originally posted by @Lanique Carroll :
When doing whole sale real estate is pre forclosed homes a good idea?

 Not a good idea at all, IMHO. In most states working with pre-foreclosures are sophisticated transactions that must follow specific laws and guidelines. You should sit with an attorney who does real estate law in the state you would want to wholesale in and explain the process you would use and ask for their opinion on how to be compliant with state and federal laws. If you aren't actually taking title, you might run into problems. If you are taking title, follow the procedures and then you can sell it to an investor if you wish. It's actually illegal to solicit pre-foreclosures in at least one state, probably illegal in some others as well. Research before you jump in. 

Sensitive situations and many are short sales which you can't assign contracts on. Wouldn't recommend trying to whole foreclosure homes with equity unless if you knew 100% you could get it done and are very experienced as it could go sour quickly.