Less than 30 days to try and help a vet in preforeclosure!

[Andrea Parsley]

Hey BP,

I'm a newbie and need some help with a wholesale deal. Owner is in pre foreclosure, auction date is set Dec. 12th. Owner purchased home in 2014 and currently has it rented out to a tenet who lost their job. The bank is asking $119k to payoff or pay past due balance of $5k. The ARV for the area is $135k-145k. The house itself isn't in terrible condition, just a few cosmetic updates. The owner is in a tough situation, he's a military veteran and he's going through cancer treatments, needless to say I would love to help him out but I need some ideas. There isn't enough equity to wholesale or flip. Rental rates for the area are around $1k. If anyone has any suggestions I'm all ears! Thank you!

[Ray A Delfi]

@Andrea Parsley if the owner wants to walk away then, to put it simply, mortgage stays in their name you make the payments to the mortgage company (set up at escrow). You have title then BRRRR it. If you default on any of the payments the seller gets their property back plus improvements. Here's a few steps, but to get you on the right path but definitely read up on this and consult with a realestate attorney.

-find out what they need to get the Tennant out, if it’s a simple Cash for keys, continue, if it’s an eviction, you may not want to get involved. If your going to do it, approach the Tennant’s with caution, don’t be a hero.

-coordinate with the seller to make a call to the servicing company to confirm the amount to bring him current. Get a copy of the mortgage statement.

-do your due diligence and run the numbers,

-if it’s a good deal you’ll have to get it under contract,

-send a check to the loan company to stop foreclosure,

-assign the contract to an investor that you have met in one of your REI meetings, you know personally, or keep it for yourself.