Helping someone in pre foreclosure save their credit?

[Sal Souza]

Hi All,

I've been learning about pre foreclosure leads as possible deal sources.  People who teach this subject are always referring to how you're helping people by purchasing their home and saving them from foreclosure thus saving their credit.  There is a property in foreclosure in my town that I'm interested in, but I'm confused about a couple things:

1) How do you answer the objection from the seller who says their credit is already ruined because of missing so many mortgage payments? 

2) If the seller has a lot of equity, I would structure my offer so that the seller receives some of that as cash for moving/relocating expenses, etc. But doesn't the lender have to do that as well once the property becomes an REO and is sold?

Thanks!

Sal

[Jay Hinrichs]

CA OR and WA have very specific laws as it relates to what you can and cannot do with a homeowner in foreclosure you should read those before you do anything.. they have severe penalties for violators..

Once you figure what you can and cannot do legally.

1. as Wayne above state Credit is trashed. your bringing no value there In West coast Purchase Money Deed of trust foreclosure  credit is trashed and bank has no right for a deficiency judgement. 

2.  folks in foreclosure can be very hard to deal with as most are in a severe case of denial.. sometimes we think they are or should be motivated but living for free as long as they can is more motivation than helping them move or giving them what amounts to crumbs for their equity.