Possible Pre-foreclosure Deal

[Account Closed]

A few months ago a friend of ours couldn't afford the mortgage payments on her home and decided to let her house go through foreclosure. I don't think it actually foreclosed yet. Her home is in Solano County California very nice area. It's newer home in great condition in a nice middle to upper middle-class neighborhood.

I was thinking about helping her out by avoiding foreclosure and sell it through a short sale.

I am still new at RE investing, but I'm hoping someone here can give me the ins and outs of this possible deal and how do I proceed with this possible deal.

Thanks,
Ed

[Steve Dussault]

Ed,

If she is a friend, get her to get the house listed to find a buyer for a short sale. If you get in the middle the short sale will be less likely to be approved, due to your profit requirements and that of your investor. Not the best approach if she is a friend.

The best bet for your friend is to find an owner-occupant buyer that doesn't need a huge discount to buy, just a fair market price that the bank would be eager to accept on a short sale.