Pre-forclosure questions

[Daniel Smith]

what do you guys use as a pitch while trying to buy pre-foreclosed homes from a home owner at their door ? What legal risks are associated with wholesaling these properties? What contracts do you typically get signed by the home owner? purchase and sale agreement or quit claim deed? When one owner is incapacitated (has Alzheimer's) and the other owner is willing to sell the home what steps have to be taken in order for that home to be sold? Good ways to contact  a pre-foreclosure  home owner In a gated community? Pros and cons Assigning contract vs transactional lending? How to determine  a fair assignment fee? 

 I'm trying to be compliant with any foreclosure laws that protect home owners. I'm in Denver CO. 

Thank you for reading any feedback would be much appreciated ! 

[Bill Hamilton]

I think some pretty experienced people have tried to advise you on preforeclosure deals in Colorado on another thread but here are some things you need to look at and understand completely before you attempt to negotiate a deal (especially as a wholesaler) with someone who has had an NOD served on them. I think you will see by the wording on the law that Colorado is going to defend the homeowner over your interest if you cross any lines in the least. And that there are criminal penalties involved. Not just civil/monetary. Also understand that if you indicate that you can "buy" a house from someone and then you fail to make that happen, the homeowner and the bank that holds the note (if they delay the auction based on you telling them you need more time) can come after you. I am not saying don't do it......just make dang sure you know where those lines are.

http://frascona.com/wp-content/uploads/2015/09/SB06-071.pdf

https://www.biggerpockets.com/blogs/2849/21595-colorado-foreclosure-act-short-sale-double-closings

http://www.legalwiz.com/colorado-foreclosure-protection-act/