How to wholesale a PRE-FORECLOSURE in Milwaukee, WI

[Kou Vang]

Hi guys,

I been on bigger pockets for about a year now and i been reading and learning as much as i can about wholesaling, but i have not done anything yet. So today i was up on Zillow and saw that my next door neighbor was in pre-foreclosure, so gather all my will power and i went over, knocked on the door and say and basically said hey i want to buy your house for a low price. so we talked and he's willing to sell me his house for what left on his loan. which he says its about 25K. The property is worth about 90K so i thought this is a pretty good deal (thinking i can whole for probably 35K) so i told him that  i will have a contract for him in the next few days, and can close in about 3 weeks. 

So my problem is that i have no clue what to do next, i don't even know where to get the contracts or what i should put in. What are the steps i should do and can i even wholesale a pre-foreclose property? also is there anything i should be aware of? i know im asking for alot of info but any help would be much appreciated and thank you for looking! :D

[Michael Mcghee]

I would put the property under contract immediately with an inspection contingency. Then find out if there is a sale date and if so ask the lender for more time or have an agent to list the property as a short sale. This will buy you some time. Like @ Davinder Toor said, get an attorney but what's crucial about the attorney is that you want to run a title check adapter. If he only owes 25k  and willing to let it go for that, then that could be a smoking gun. The attorney will let you know if there are any other liens including but not limited to Judgments. If the house if really worth 90k you should not have a problem flipping it. At that price I would also consider closing in it myself using my own funds or a hard money lender.