All Forum Posts by: Xavior Wilson

Thank you Joe! So let me make sure I understand --

Let's say a house has 80k in equity, 20k remaining balance on the loan. If they have 60k worth of work to be done to rehab the house before selling, they lose 60k -- leaving them with 20k left of equity. In a traditional sale, would they be able to sell the house and pocket 20k? Or will that go toward the remaining balance of the loan?  

 In a wholesale pre-foreclosure transaction, they're getting an opportunity to potentially sell the home to cover the remaining balance owed to the bank. Would the equity balance automatically be dismissed because of the pre-foreclosure?

Thanks!

I'm a newbie to the wholesaling world but I'm trying to understand the seller's remaining home equity in this transaction.

When you're on a call and seller asks "what happens with the money I put into my home?" What's your answer? My thoughts...they keep the remaining equity and the purchase price pays off the remaining balance of the loan. But I feel like this would be ok if you were NOT selling a home in pre-foreclosure.  Am I right? Or does the equity disappear and the true gift is getting rid of a problem property?

It's ok to talk to me like I'm 5. Ha!