How do you buy pre-foreclosures?

[Mo Sylla]

How do you buy pre-foreclosures?

What are the logical steps?

Imagine you speak to a homeowner in pre-foreclosure. You reassure him or her and she is open to selling you the property. What comes next?

How do you determine the offer price?

1. do you buy out the equity on the house if the house has a positive equity? I elaborate.

The loan was 100k. The ARV of the property is now 150k. The buyer has already paid back 50k.

Do you hand the buyer 50k so you now have the 100k equity for yourself?(i.e. the loan was already paid at 50%. So it now stands at 50k of the original loan. The ARV 150k-50k balance=100k equity)

2. How do you go about to calculate your offer?

I am educating myself on pre-foreclosure,so all your contributions will be catalysts to speed up my learning process,which in turn i will use to solve ownership probems.

Happy new year to all.