Lead wants to save her house in preforeclosure.

5 Replies

So I've got this lead that's in Pre-Foreclosure. The house is going up for auction next month. The lead owes about 43k on the house. She wants to save the house and not sell it. She says she'll have her arrears by the auction date. Is there anything I can do as a wholesaler to help this lead?

Not likely unfortunately if she's not looking to part with it or move out =/

It's great to research saving deals, but just make sure you're not dwelling on them, because there are other distressed sellers out there waiting for you to help them, that you can actually make $$ on :)

Originally posted by @Shadane K Croach :

So I’ve got this lead that’s in Pre-Foreclosure. The house is going up for auction next month. The lead owes about 43k on the house. She wants to save the house and not sell it. She says she’ll have her arrears by the auction date. Is there anything I can do as a wholesaler to help this lead?

If she will have the arrears by the auction date she can call the lender and work out a loan modification.

 

To make a profit in wholesaling, you need a willing and able “seller”. In this case, there is no seller so no chance for profits. Assisting or negotiating a loan modification made require a license and likely not worth your time and efforts anyways even if it were legal to get paid for it. Find a lead with a party motivated to actually sell their home.

The only option I can think of would require a pretty large upside. Catch them up and buy it sub-to. AS LONG AS SHE CAN NOW PAY AN INCREASED MONTHLY PAYMENT for the property now (sometimes this happens where they get behind in payments due to downsizing and then get a better job but can't come up with the chunk of cash to bring their account up to date), you can rent to own and re-sell it to her at a higher price. As I said, though, the ARV has to support it and she has to be able to pay higher payments for a time.

It's a long shot, but a possibility. If you're still new, though, ignore it and move on. Plenty more out there.

How much is owed on the home and what is it worth?  How old is the borrower? Not much money to make as a wholesaler if she wasn't willing to sell. If she doesn't get the money maybe she'd be open to selling and a longer term rent back.