Finding total amount owed on a pre-foreclosure property

[Sam Brooks]

Hello everyone my name is Sam and I'm beginning my wholesale journey in the New Orleans area. I have a few questions specifically about pre-foreclosure properties that are coming up on an auction sale.

1. How do I figure out the total amount owed, including writ, liens, violations, remaining mortgage, etc?

2. Does that amount get paid at closing?

3. Does a buyer need to wait for that amount to clear with the county/parish before the home can be purchased?

Any info about wholesaling pre-foreclosure properties will be much appreciated.

Thanks,

Sam

[Lydia R.]

Hi Sam! Its almost impossible to know approx how much a seller owes without getting a payoff from the bank, getting authorization to speak with the bank on the sellers behalf or at the very least looking at the most recent statement from the bank/loan servicer. 

The amount you need to put the home under contract for needs to cover at least the total amount of debt owed on the property, including the past due amounts and fees etc. Also take into consideration that most sellers will want some money as well. You need to make sure that you run the numbers and make sure the deal makes sense. Dont forget that if you intend to wholesale this property you need to leave room in the deal for your wholesale fee and for an investor to rehab the property, sell it and make a profit. You should have a general idea of the ARV when you initially meet with your seller and work backwards from there. Hope this helps!