Seller agreement for preforeclosures

[Alberto Vazquez]

I’ve come across a couple of preforeclosure properties and owners going through bankruptcy through the BG foreclosure subscription. I am in Houston. How would I go about with acquiring one of these properties? Do I contact the owner initially? Get a realtor? What documents, due diligence do I need to take? What are the risks? Laws in TX? Thanks

[Dan Maciejewski]

If it's a "pre-foreclosure" you buy it the same way you buy any house.  The only way it becomes an issue is if it's also a short sale.  Pre-foreclosure technically only means that they are behind on the mortgage enough that a Lis Pendens has been filed.

Most people (like 95% of people in forbearance) are not underwater, so it's most likely not a short sale -- they probably have enough equity to sell and walk away with a check instead of writing one.  Even at a discounted price.  See if you can see what the mortgage balance is.  I don't think Texas is a public record state, though, so you might not be able to.