Wholesaling A foreclosure

[Jamie Williams]

Hello,

I reached out to some owners on the auction list and a few have contacted me back.

I've read a little on wholesaling pre-foreclosures but there seems to be mixed approaches.

For those that have wholesaled pre-foreclosure can you briefly outline the process and any additional documents you used or anything that is not traditional to wholesaling "regular" homes.

-Some wholesalers communicate with the bank, others communicate with the seller.

-How where the late payments and fees paid for?

-Did you double close?

Thanks guys!

[Rick Pozos]

Getting back to the question.

The first thing you are going to ask the seller is to get a reinstatement and payoff from the bank or lender. With that in hand, you can see whether there is some equity in the property.

You can have whoever you want put the money up for the reinstatement. I have not done a simultaneous close in quite some time. If I was to wholesale the deal, I let the buyer do the deal because I deal with people I know and trust. I know they are not going to screw me out of my wholesale fee. You could get it under contract and then assign the contract to the buyer.

What I usually do is get the deed, reinstate the loan, rehab the property and get it sold as quick as possible. In this VERY summarized version I also check the property for repair costs, get contractors to the property, check ARV, do a title search to make sure no one else is on title (ex spouse or parents), make sure there are no liens or judgements on the person or the property, and figure out what is best for the seller. Also, have to find out if the seller has a place to move to and when.