PLEASE help me with first pre-forclosure DEAL.

[Scott McGill]

Hi everyone, I'm super excited because I have found my first pre-foreclosure deal. Guy I work with was telling me about his brother who was walking away from this house. I asked if it had any equity in the house and he thought there was. I'm going to meet with the brother this week and see if we can work it out.

So here is what I know.

It will be a cash purchase.

Amount left on loan $138k.

They stopped paying back in January.

As is value $150 to $155 with good cleaning.

Add $4-6 k in some easy updating I believe could sell for $165+.

So here are just a few questions I'm running into.

1. Any idea how much in additional fees will be added for being 6 months behind on payments? How hard is it to get exact amount from bank

2. Any chance the bank will waive any fees if loan

is made whole.

3. What documentation do I need in writing from bank that verifies that they are done with the loan and fees and won't bother me?

4. What is estimated closing cost from a cash by owner sale ?

Any advice would be great.

Thanks BP.

Scoot

PLAY TO THE KINGS.

[Jon Holdman]

You're going to buy this for $138K (loan balance) plus back payments and fees and closing costs, put in $6K and sell it for $165K?  If the $138K doesn't include the back payments and late fees, those are likely to be around $6K+/-.  So you would be all in for $150K.  You sell it for $165K paying 2% in closing costs and 6% in RE commissions netting $152K.  For a $2000 profit?  That's assuming no other costs, which I'm sure there will be.  Such as insurance, utilities and taxes for the period you own it.  If I understand the  numbers there's no deal here.

As far as being sure the bank will leave you alone you simply do a normal closing when you purchase it and the bank gets paid off and releases their lien.  You get a clear title and title insurance and that's how you know you're safe.