Updated about 8 years ago on . Most recent reply
An Interesting Scenario.
So, let me start off by saying... I'm not a Real Estate Investor, and this is definitely is not my main expertise. Although, I've been trying to read up and have been reviewing BiggerPockets for several months.
A very good friend of mine... is in a particular position, where he has access to a lot of data on home mortgages. Without going into too much detail, he is currently in the particular position... where he can identify borrowers that are delinquent - long before they have been formally sued by their lender and everyone knows about the default. He has the ability to see when someone is just 30 days behind, or 60 days from data. He can also follow, and see when that loan becomes 90, 120, and if the loan enters into a modification or mitigation status.
While he can't see every single home in America, he personally can see a lot of them, and this is where I am curious. He has shown me scenarios where...
A borrower purchased a two bedroom condo with a Zero Down home loan in 2007 for $783k. The property is now worth $1.2m and has no other liens, but the borrower has not made their mortgage payments since March. They are sitting on a decent bit of equity.
One very fascinating tell was a borrower who owns a $20mm property and is delinquent on a $4 Million Interest-Only mortgage in a very vibrant, big city. Not only this but that same borrower is delinquent on payments for two other properties in that same area. All of which have significant & sizable equity stakes in the properties.
Now... while someone could be hopeful that the above borrower would be interested in listening to a purchase offer. I don't feel like they'd personally be receptive, and would consider any other option. But it's intriguing none the less. I feel as though if someone approached people like this, you could have a wholesaling opportunity.
My main question... I guess, and the reason I'm posting here, is I want to ask. Am I missing something? Can we just approach the homeowners and send them letters in the mail offering to purchase the property? Is there anything I should know, before trying this? Or... is it as simple as trying to purchase something, and then offering up the deal to someone else?