PreForeclosure Deal

[Sofia G.]

Hello BP. We're newbie investors from Chicago, reaching out to folks versed on handling preforeclosure deals.

Got this one from mailers we did on preforeclosures with equity. The sellers' reason on selling is because they are in the process of divorce. SFR is in a great neighborhood, facing foreclosure with 20% equity, doesn't need major repairs, in a move in ready condition but not in top shape. We've done our due diligence, found no liens with as is value at $596k.

With $596k x .70 - $10k repair - $10k closing costs = $397200 is our best offer which was not agreeable for them, they want a minimum of $490k.  We're thinking the only way they can get the most of this house is to either rent it or have someone take over their payments but given it's a divorce situation, they'd rather not. 

We're newbies so we're a bit nervous about handling this, we don't want to waste their time, but at the same time we want to be able to help them out.  

Any other ways you handled such a situation? 

Any input would be greatly appreciated.