Preforeclosure - Next Steps!?

[Tanya Rooney]

Hello BP'ers!

I found a house that I am very interested in buying for the right price. We just found out its in preforeclosure. I have never ventured down this path and have only done a small amount of research on it. It sounds like my only option at this stage is to reach out to the homeowner direct with a phone call, drop in or letter(s) to see if we can strike a deal and get them out of their mortgage. Can anyone provide some feedback on how this goes? I am not completely on the up and up on what the conversation is except that I want to buy that house for what they owe or a little more. Do I tell them its just like a typical home sale and it gets them out of their mortgage quickly? If they are 8 months behind on payments, do I pay that up and then the balance of their loan?

If there is a book a should be buying to teach me about it, feel free to suggest. I searched the forums a bit and found writing a letter seems to be the most common. Any suggestions or advice is welcome! Thank you!!

[Ned Carey]

@Tanya Rooney Just talk to them like you would anyone else. They are probably getting a ton of mail so you might want to talk to them directly. 

The mortgage will get paid off at settlement. However  you need to make sure the deal gets done before the foreclosure is finished.