So I was hoping for some feedback from the BP community.
I have been focusing on marketing to pre-foreclosures / both tax pre-foreclosures and mortgage pre-foreclosures. All of these properties will be headed to the block within 30 days
So far every mortgage pre-foreclosure I have approached, that are willing to sell, have been underwater on their mortgage "they owe more than the property is worth".
The only out for these home owners on selling their home would be a short-sale. In my experience, none of the lenders are willing to honor and "assignment of contract" on a short sale transaction....
So has anyone had any luck in finding a mortgage pre-foreclosure in which the home owner does not owe more than the home is worth , and has enough equity for a whole sale or assignment of contract to work?
Next month I am thinking of focusing solely on tax per-foreclosures, but before cutting my leads about in half, I want to make sure I am headed in the right direction.
Thanks for stopping by and sharing.
Too often there is a high correlation between being in financial trouble (e.g., foreclosure) and having little or no equity. If the owner had very high equity (50% or higher, which is what you need for cash buying/wholesaling), they would likely just sell the house rather than allow it to go to foreclosure and give their equity up to the bank.
There is no opportunity to "wholesale a short sale". I think you may be fishing in a pond that looks nice on the surface, but turns out there are no fish in it.
My thoughts exactly sir, thank you for sharing your insight.
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