Pre-Foreclosure Sales

Many times some of the best deals can be negotiated directly between our clients and the sellers who typically are very motivated. The success of our clients is part of the reason so many of the original foreclosure filings never make it to the auction. Naturally the sellers will not turn over their home unless they receive some type of compensation.

There are risks in contacting the owners in person! Most people are facing foreclosure for some reason outside of their control. No one wants to loose their home and some owners are very upset. However, most appreciate a third party who is truly trying to help. Our clients have a clear edge on the competition because we start uploading information the day after Super Tuesday.

Once you have located a property, contacted the owner and determined a selling price we offer services that allow us working together to stop the foreclosure, bring the loan current, obtain title insurance and conclude a quick sale using a standard FHA, VA or conventional loan.

Here is a typical example:

If you are purchasing as an owner occupant, have good credit and have savings of $4,000.00 to cover down payment and closing costs you are ready to buy a foreclosure at wholesale.

Using our web site you located a property with a current market value of $120,000.00. After contacting the owner you learn that they purchased the home 3 years ago for $89,000.00 with monthly payments of $794.34 which include taxes and insurance. Nine months ago due to medical reasons and unpaid medical bills the owners filed for bankruptcy protection. The court ordered a payment plan which was recently violated. The lender has not been paid for 9 months and has incurred additional legal fees of 1,825.00.

The current amount owing to reinstate the loan is $7,149.06 plus 1,825.00 in legal fees. Total loan payoff is $94,951.64. You offer the seller $4,500.00 to be paid at closing. Your total purchase price is $99,451.64 plus brokerage fees.

We handle all the paper work, deal with the lender and immediately advance 9,000.00 to stop the foreclosure. The above gives our client the opportunity to purchase the home directly from the seller using an FHA loan to secure the purchase at $105,418.74.