WHOLESAILING QUESTION FOR TEXAS INVESTORS

[Wally Martinez]

Hello BP Community,

Hope everyone is well and killing some deals this week. I apologize for my ignorance, but I have a question/ situation that I want pose to the community to see what some of the more seasoned investor’s thoughts are. Again, I apologize I’m still learning and have not completed my first deal yet.

(The stupidest question is the one that is not asked)

State: Texas

Situation: An Investor finds a seller that is facing foreclosure in 30 days and owes the bank $200K and the house has an ARV of $275K. The seller agrees to sell his house to the Investor for $75K cash. The Investor finds a buyer that will pay $100K immediately and all contracts are filled out and everyone gets paid. What happens next? Is it up to the seller to settle arrears with the bank and the Investor and buyer are free to move on to the next deal?

Can a seller sell a house for less than he/she owes on it and keep the money for themselves and settle with the bank later?

Please all comments and thoughts are welcome. Thank you in advance.

[Greg H.]

Ummm, that is a big NO.  The lender holds a lien on the property until the loan is paid in full.  Technically if the seller is within 30 days of foreclosure, the note has already been accelerated and is due in full