Can you wholesale a pre forclosure?

Question

Hi All,

I have a seller who wants to sell me there house but it is in pre foreclosure.She wants $27,000 but it is estimated value on find cash comps.com for $64,000 plus homes in their area goes anywhere from $45,000 to $70,000. Decent area and township schools. I am going to talk her down some too. I know I would have a buyer swipe this up quick. Is this something I want to mess with? Would it be a sticky situation since it is in pre forclosure? I want to call her back asap. Since she is behind on payments and everything what does that look like for a wholesaler? Thanks in advance for all your help.

Ashley Pittman · Answer

I didnt get that deal to work out like I had hoped. Seller

Was to backed up payments and everything but thanks for all the help guys.

Ashley Pittman · Answer

ok thank you so much!

Ned Carey · Answer

Agree with @Wayne Brooks

I will add in some states like Maryland there are laws to protect homeowners in foreclosure. Make sure your state doesn't have such a law as it can greatly complicate things.

The other concern is how fast is the foreclosure moving? A homeowner has the right to sell their property. As long as it settles and the mortgage gets paid off before the foreclosure is final, there is no issue. To some degree it is a race but sometimes a bank will stall a foreclosure to let a deal happen. - Ned

Wayne Brooks · Answer

You need to know the real, as is value not an Internet estimate.

You need to know the loan balance, with late fees, etc.  only then can you figure out if it's a short sale, or if they have any equity.