Buying in pre-foreclosure...with some added complications

[Rob White]

Im looking at a condo which is in the $100,000 range and curious if anyone has seen these as red flags or possibly if im getting in over my head. Ill bullet the items to make it easier.

- Seller says the foreclosure is incorrect and doesn’t belong to the property, so he is fighting it in court to get it lifted, but is looking to sell.

- He wont tell me the current rent of the condo

- Wants to use a real estate Lawyer for the transaction. (A question here is, should I be using his lawyer or should i be the one to chose a lawyer. The condo is in my home state and he is an out of state owner.)

[Doug Smith]

@Rob White The best advice I can offer is this: I was once told by another fund manager two pay two people first before anyone else...the IRS and your lawyer. I would not be unrepresented in a transaction where there is a questionable title chain. Spending a few bucks with a GOOD real estate attorney that specializes in title issues is going to be money well spent. Sometimes, its the deals that you don't do that are the best deals. This one could turn into a nightmare if your bases aren't covered. Several years ago, I had the delusion that I could handle a business transaction without my lawyer and save a few bucks...I lost over $150,000 because I missed something. I won't repeat that mistake again and I share that story because I would hate to see you make a similar mistake. I'm considered an expert in what I do...and I still lean on counsel heavily. Good luck!