Motivated seller and how to proceed ?

Question

I have been talking with someone that is about to get a foreclosure on his property he has owned it for about 8 years and has some equity, I am a newbie investor who wants to get the house and put some money into it and get it rented out. How would I proceed with this opportunity here should I maybe go talk with a real estate lawyer? I want to proceed with seller financing put some money down and want him to get out of foreclosure and make him happy by getting him something out of the deal as well. Any advice on how to proceed?

Huong Luu · Answer

@Zaher Muhareb, Definitely talk to a RE lawyer (I would recommend Barry McGuire, who is also located in Edmonton) about AFS (Agreement for Sale). If there is enough equity in the property and there is value, then you should be able to structure the deal that will benefit both of you.

Huong Luu · Answer

Send me a message and I will connect you with someone closer to Lethbridge. However, this might be a deal you walk away from. If the owner is 'drunk', the contracts he signs may not be binding. Thus, you make the payments to get him out of foreclosure and he doesn't move. Then you would stand to lose all your money and or have a house with a drunk tenant who doesn't pay rent.

Zaher Muhareb · Answer

@Huong Luu

Right I should talk to a lawyer I am actually in Lethbridge right now its where I want to start my investing. So maybe if anyone knows someone I can talk to that would be nice but if anything I can call up a lender and see who they would recommend.

Zaher Muhareb · Answer

@Victor Menasce

It is a foreclosure and I am not sure the seller doesn’t even know the numbers him self. I am trying to get a hold of him to talk but every time I see him he’s always drinking so he can’t talk straight or he will say we will figure it out. Times ticking and he has only said he has many payments to catch up on.

Victor Menasce · Answer

Is the situation a Foreclosure or a Power of Sale? How much would it take to make the loan current with the lender?

Motivated seller and how to proceed ?

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