Foreclosure Opportunity - Is it staring me in the face?

Question

I have an inkling that my neighbor across the street is going through the foreclosure process. However it hasn't been listed in the consumer world and I haven't caught them in person to ask. 1.) For future reference Besides asking someone if they are being foreclosed on what is a more political tactic that can be effective? 2.) What is the process of accessing your local foreclosures early? Some sort of public record? 3.) in this case if I wanted to "save" them from the foreclosure on their credit history how could I buy it outright and offer to them directly? I feel like there is an easy tactic to be successful here depending upon their reaction. Can I offer them cash down and to pay off the loan if they sign over? If so which lending route do I take?

Sarah Ziehr · Answer

If they are facing foreclosure, then they can't make the payments- what makes you think they will pay you back??

Sarah Ziehr · Answer

Sorry, I misread the post. If the homeowners owe more than its worth, then you have no deal. If the homeowners are truly in a hardship and owe less than its worth- why wouldn't they just sell and get fair market value? In either scenario I don't think you stand a chance. Its either a waste of time, or you are a real scum bag for offering what they owe - if its worth more. Why not go the neighborly route and advise them on what to do rather than plot a way to make a profit over someone else's hardship?

Stephen Oakes · Answer

What Ricardo is saying makes sense. But in that instance, how would the title transfer work and how does the bank/lender get paid for what they are owed? Me paying them cash or getting a loan for the outstanding amount? and you are correct if they owe more than it is worth then definitely not. However after looking on the appraisal district site it says that for 2015 the AD valued the home at $142k and it has two note holders both for $71k & $71k. one of them is the folks that live in the house and the other one i have no clue. perhaps a parent. However there has been no change in title since the house was built in 2004 and the comps for the house would range it at $170k depending how they've treated it. Just trying to see where an positive option might be or if this is just a waste of time.

Ricardo Cortes · Answer

I dont think @stephen oaks is looking to get paid back from the seller/owner, he may be looking at 'subject to' transaction. Depending on how much the seller owes, it may be all he needs to pay to own the home. Say the family owes 40K on the mortgage, Stephen can save the owner from foreclosure by paying the 40K owed, and the deed is signed over to Stephen. Stephen just bought a house for 40K. From here Stephen can re-sell for profit, or for cash flow by making arrangements with the current residents.Please correct me if im wrong, any one!

Wayne Brooks · Answer

Texas is not a judicial foreclosure state, so there will be no LP. You'd look for a NOD, then a notice of sale. But as for the neighbor, start by letting him you're looking to buy real estate, you like your neighborhood and want to start there first, etc.

Dan Leyden · Answer

Hi Stephen,You should be able to find the Lis Pendens that were filed for the foreclosure at the court house. The summons and complaint should show you how much is owed and to whom. Not sure how it is in Texas, but these documents might be able to be found online. In these cases it really all depends on how much is owed on the property. 9 out of 10 they are being foreclosed because they owe more than the property is worth. In this case why would you want to buy the property?If they aren't underwater you might be able to buy the property subject to the debt. Basically transfer the deed into your name and assume the loan. Each situation is different, find a good real estate attorney to go over the details if the property has equity, and if the owner would be interested in selling.Hope that helps,Dan

Shannon K. · Answer

Are you friendly with your neighbor? Maybe make some small talk and chat him up. Lament about how tough its been to pay the bills lately and see if he opens up. You'll have to talk to him tactfully sooner or later if you were planning on making an offer for his house. Otherwise, lookup your county's central appraisal district online to see in the county records if he's been served a notice of "lis pendens" or pre-foreclosure notice of default (whatever your state calls it)...