BUYING A PREFORECLOSURE---FIRST STEP???

Submitted by Shontel from CA - 04/19/2010 - 8:43am

What is the first step to getting the ball rolling once I find a property in preforeclosure that I'm interested in? I'm looking to do this without a realtor. Please help!

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Comments

Submitted by Michelle - 04/19/2010 - 3:26pm

You would need to make contact with the homeowner to see if they are interested in selling the property. Even though they are in default they still own the property. If they owe more on the property than it is worth then you would not only need to negotiate a purchase with the homeowner but the lender would need to approve and accept the short pay amount. Keep in mind that homeowners in default may be trying to negotiate and modify their existing loan to save their house. We always suggest approaching homeowners cautiously and respectfully.

Submitted by Shontel - 04/20/2010 - 11:10am

Thanks Michelle! Do you have an approach that you use that you find works best? An investor friend of mine says he leaves handwritten notes about the offer. He says he left 10 and out of those he got 3 call backs. Do you have suggestions?

Submitted by Michelle - 04/20/2010 - 11:48am

The personal touch always seems to work. I have a friend that also includes information on the default process and a definition of terms. Most of the time homeowners are very confused and they do not understand how the foreclosure process works and what options exist for their situation. Remember that your goal is to start a conversation.

Submitted by Shontel - 04/20/2010 - 12:38pm

Great. Thank you and good luck to you!

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