Modified Short Sale Strategy

[Andrew Ortego]

As of now, my strategy consists of searching Lafayette, and its adjacent parish's, sheriff sales, sorting for properties by zip code, and heading to the clerk of courts office to check for liens and any useful mortgage information on the sorted foreclosures. Any properties that have favorable mortgage/civil documents attached to them we run numbers and drive out to the property for a better look.

I attended a sheriff's auction last week just to check it out - I met a seasoned buy and hold investor that gave me a few tips.

Our plan is to contact the lenders associated with the particular properties and offer them based on our rehab calculation, while ensuring we can still get good cash flow and ROI. We are counting on the lenders not wanting to wait for the properties to go to auction if someone is ready to offer then and there.  I plan on working with another lender for conventional financing.

A walk-thru/inspection contingency would be attached to all offers. Hopefully, the lenders would counter, giving my partner and me a couple days to check for deal-breaking issues. We know a contractor that can accompany us on a walk through. 

Once the borrower is served a notice of seizure does he/she have any input on this process?  Can anyone offer any general advice on how to deal with the original lender in the scenario?  Is there an official term for this strategy?