What to do when seller's home is headed to foreclosure?

3 Replies

i finally made contact with my first seller. She called back from yellow letter.  She informed that house is scheduled for foreclosure by the end of the month. She is unsure of all of what is needed and  will follow up in couple of days. She values house at $40000. Comps in area are between $13000 and $20000. I'm thinking more like $14000 depending on how much is owed. $2192 is owed in taxes. The house is vacant. Good condition. She no longer wants to rent it out. I'm looking advice on how should I proceed, if at all? All advice is welcome. 

Thanks in advance

Remind her that she will lose the house in foreclosure within 30 days and GET NO MONEY from the sale. So do what ever terms you give and she will have to accept it or lose the house. Example... take over payments and pay the back taxes and possibly give her a few hundred dollars to help her move to another property.....etc.  So get creative ideas whatever you come up with.

A couple of points here

One is what's existing financing besides the back taxes? If there's a loan against property should know that

 Assuming there is just a first mortgage, what's the total pay off including legal fees?

 what is market rent for the property ?

 what condition is the property to bring it to rentable condition ?

 To get the existing financing and the pay off I generally say something like this:

" So the banks going to take your house and give me nothing in the moment and just a few days, I need at least seven days to be able to solve the problem, so I would need to see all the paperwork on the property, the paperwork from the attorney on the foreclosure, then I need to contact them for pay off and find out how much all the fees are including the late fees and the legal fees"

"If you want to protect your credit rating from a foreclosure on your credit rating, which stops you from getting any other government loans or even might even stop you from getting a government job, let's sit down and look at all the numbers and see what I can do to quickly solve your problem "

 And then I make sure that when I walk through the property everyone that is on the mortgage and everyone that is on the title of ownership of property is present,  so that I can get some kind of sale and purchase agreement, written signed, and notarized.

Thanks. I will take all advice into consideration when I meet again.

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