Need some advice, chasing a prospect that has a Notice of Trust Sale filed Mid Feb.

[Robert Sutherland]

Good Day, long story short, I have a lead where they have a property in the San Gabriel Valley (So Cal/LA County), they have had multiple NOD's filed on the home, going back to 2023, and now they have a Notice of Trustee Sale that was recorded in Mid February (final Judgement amount around $300K). The Property retails closer to $500K, owner bought about 5 years ago for $330K, I've made contact with him several times (have his cell phone), I think head in the sand a bit. A notice of trustee sale was scheduled earlier in 2024, owner got it postponed somehow, not sure if what to do (or if anything can be done). I have an investor that will pay $330K for the place (owner's original purchase price), I'm look for some approaches....Any thoughts would be appreciated.

[Bruce Lynn]

Plenty of owners lose their equity, so that is nothing new.  It can be very overwhelming and many think about survival at this point, not strategically or rationally.  Dealing with one like that myself right now.  It's just common.  Foreclosure is typically not the only issue they are facing.  Maybe job loss, credit card loss, car repossession, health issues, family issues, depleted savings.   We want to ration with people like this, like we try to ration with addicts or intoxicated people.  I think you just have to keep after it.

Your investor will likely need to pay more than $330K.  You have to think they perhaps paid for 3 year of 5 or less. So very little balance was paid.  In the meantime while they were not paying, the lender has lost taxes, forced place insurance, and attorney fees.  If you had time for a short sale, that offer might be possible, but chances are you need a quick sale before foreclosure.  You also need to give the seller something to move and pay storage for a year and maybe rent for a year. So maybe you are looking at $375,000 or so to make everyone want to cooperate.  Solve the seller's problems, not just their foreclosure.

Get a buyer's rep from your buyer for the full amount you want to make on top of the $375,000.  Write the offer, present it to the seller to sign.  No commission or fees to the seller, only to the buyer.  Seller needs to pay for all closing costs, even the buyer's closing costs.  Survey, title insurance, escrow fees or whatever.

It's a lot easier to get buyers and sellers to sign if you have all the paperwork ready and present it to them.  Just sign here....X...and initial there....X X  X, instead of presenting ideas.