Well, first question--is it a deal? Value? Full mortgage balance, with ALL fees/costs? How much walking away money does the owner need?
I haven't spoke with the current owner as of yet. My step-father spoke to the owners and he is the one who mentioned it to me. So what questions should I ask the homeowner? @Wayne Brooks
Yes, you should contact the potential seller and vet them properly. Find out if they want to sell, how much they owe, how far behind they are, etc. Then you will need to determine what the fair market value of the property is and how much in repairs it will require, before you can suggest a course of action.
If they owe more on the home than it is worth, you will need to look at doing a potential short sale. If the property has a bit of equity in it, but not enough to make selling worth it, you may be able to pay existing back payments and refinance or get the mortgage assigned / subject to (if possible). If there is substantial equity, their best move is probably just to sell.
As far as a short sale, who do I speak with about that? Do I run the idea across the owner and then speak to the bank about a short sale on their behalf? @Christopher Brainard
As stated in the previous post, you need to talk to the seller first before you talk to anyone else. You need to pre-qualify them - not everyone be a potential candidate for a short sale or even qualify if they are behind. It sounds like you need to do a bit more research on the subject before you proceed - wanting to make a deal is admirable, but you need to fully understand what you are doing and the consequences, especially where short sales are concerned. I'd recommend that you try to find someone locally to partner up and show you the ropes. There are regulations in place which need to be adhered to and you will need very specific advice to ensure you don't violate any state and/or federal regulations.
Quite frankly if th owner is in foreclosure he has no negotiating power at this point.
Have you talked to the foreclosing entity, maybe you can substitute yourself into the loan and pull it out of foreclosure.
If their is no equity left it may be better to look elsewhere for your 1st investment.
Thanks for the advice guys, really appreciate it!
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