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Updated over 5 years ago,

User Stats

72
Posts
21
Votes
Anthony Fecarotta
  • Flipper/Rehabber
  • Chicago, IL
21
Votes |
72
Posts

Property I Want In Pre-Foreclosure

Anthony Fecarotta
  • Flipper/Rehabber
  • Chicago, IL
Posted

Hello BP Community, could use some help, any feedback is appreciated! Here goes..

A few months ago I bought a townhouse that is part of a 3 unit building here in the suburbs of Chicago. Without going into too much detail, the family I bought it from were very tough to work with and their business ethics are non-existent to say the least. After a few tough months of back and forth, and them playing hardball, I discovered they haven't paid their mortgage in months and was able to use that leverage to get this deal closed at a favorable price (my first future rental property). The week I moved in the mother of the woman I bought it from knocked on my door and asked me if I would be interested in buying the place downstairs as well. I was shocked to hear that they were the owners and investors of the townhouse downstairs considering they weren't paying the mortgage on the unit I bought upstairs. I said I'd think about it if the current tenant living there would let me check the place out. I met the tenant, discovered she is on hospice, and was one of the nicest ladies i've ever met. The unit would be cash flow great, but I didn't agree with the price they wanted to sell it to me for so negotiations continued. Two weeks ago a private investigator for the bank shows up trying to serve a notice to these owners saying they have ignored all notices to pay their rent for over six months and foreclosure proceedings have begun. After I find out they have been collecting this poor lady's rent all this time and not paying their mortgage I reach out to their daughter who I purchased my house from (the downstairs unit is in the mother's name), and ask if your situation is dire, why won't you accept my offer for the home? She tells me that the father's grand plan is to let this house go into foreclosure (in his wife's name), have his wife declare bankruptcy, then get a short sale and buy it back from themselves for pennies on the dollar in some LLC. Like I said, these people have no ethics to say the last, and frankly, aren't that intelligent; this is mortgage fraud on the highest level. I gave up on buying it because I don't want to deal with these people, but then they show up and give a 30 day notice to vacate to their tenant who is on hospice (month to month lease) even though told they would let her die peacefully there. I'd like to add that I did find her a tenants rights attorney so she has good representation but it got me thinking what these people are up to that they are all of a sudden trying to kick her out with no remorse.

WHICH BRINGS ME TO MY QUESTION... today for the first time on Zillow i was able to see that this property is officially in Pre-Foreclosure for $36,000 less than what they bought it for in 2016. Not only is it a great deal for me, but I can do right by this dying woman and let her live out her last days without having to worry about some scumbags evicting her. SO HOW CAN I PUT AN OFFER ON THIS PROPERTY? I asked my realtor, he said he couldn't find anything but that was like two weeks ago. When I click the "get more info" link on zillow it directs me to a directory of foreclosures specialists. 

Do I have to find a specialized agent for this?
Is there a way I can get a hold of the bank and work with them directly?
I'm still very new to this business, and I know once the banks get involved it becomes a pain in the ***, but this is one deal that would kill me to slip away, both professionally and personally. Is there a way to avoid this going to some REO auction, where there's 100 flippers looking at this place at the same time?

ANY feedback is appreciated. If you have any other questions about the situation I will be happy to answer.

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