Wholesaling A Foreclosed Home

[D.J. Walker]

Hey BP!

So I got a lead driving in a good neighborhood. The homes are going for 230k and this home looked as if it needed some TLC. I knocked on the door and proceeding to have a conversation with the homeowners girlfriend. After letting her know what I did she told me the homeowner is in prison. But they are looking to sell. I got all the information I needed and followed up because I saw the home is in FORECLOSURE. She said it’s been in foreclosure for a while she doesn’t know how long. I got in contact with the homeowner via: written letter to the prison. He confirmed they owe 190k. I let him know that that price was too high for me because it’s not repaired. He understood and I built so much credibility plus them being in a desperate situation he wanted to know if he can sell it to me for a number that will work for me. Now this is going to be my first deal and I need to know if I can purchase a foreclosure for less than what is owed from the owner or is this something I have to deal with the bank directly?

[Stephen J Davis]

Yes, as I understand it you will need to get the bank to do a short sale. This can take a long time. I saw one go for over a year but I think it is usually about 4 to 6 months. You will learn a lot by working this deal even if you don't get it done. You will be a better investor for it. Good luck.