Financing for pre foreclosures

[Leland James]

Hey I was wondering -

Let’s say I find a pre foreclosure property, get the owner working with me, would I be able to pay off the delinquent amount and make an offer on the home being backed by my bank money, also would I be able to pay off the delinquent amount and myself get reinstated with the bank and take ownership of the home that way and just make payments?? And turn it into a rental ?????? I hope this makes sense and I’d like to know if people do this... thank you in advance.

[Kenneth Garrett]

@Leland James

If your looking at helping the owner in pre-foreclosure.  By helping them catch up and taking over there payments is a “subject to”.  In other words you are taking over the property, transferring the deed and the only thing that remains is the existing mortgage.  This is only done without the banks knowledge.  If the bank finds out they will call the loan due.  The worst that will happen is you will need to buy it.  Make sure you have an exit strategy in case the loan is called due.  When we accept a mortgage subject to deals are technically prohibited as the deed has been transferred.  Although most times the mortgage company is not aware, calling the loan due is rare, but I do know an investor whose  loan was called due.

Hope this helps.