Sub2

[Steve Thomas]

Hey there,

Quick question - I'm running into more properties that our investment group can purchase, but the owners are way behind in their payments.  Is there a way to get around catching up all of the payments to make the loan whole?  Could the homeowner possibly do a modification first - then have us take the property sub2?  Could we talk to the bank and explain the game plan or is that always a bad idea because it increases the possibility of them calling the note due?  Also - if foreclosure activity has started, how can it be stopped?  Thanks for the advice!!

[Rocky V.]

If the numbers work do the deal.  I have paid over 6 months of back payments in order to make the loan current.  I have also told prospects that the only way I would take over payments is if they modified their loan and the only other option I had for most of them was to work a short sale.  I have gone directly to the attorney and handed them a check in order to stop foreclosure proceedings but make sure you budget for attorney fees in your calculations.  I do not write any checks without getting all contracts signed first.