OfflineLet's say I talk an owner into a lease option on a preforecluse. Once it becomes "purchase time" does the owner get any of the profit from the sale? Also, how do I calculate what the option consideration should be? Should it be a certain percentage? Thanks in advance.
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You guys can set an agreed upon price now if you want and just put that in the contract, also you can lock the contract up for as little as $10 consideration, but if the seller is behind in payments you would want to take that amount and add to it as your down payment from a tenant buyer and use some of that down payment to catch the property up. Just make sure the way you guys work out the contracts you have the ones signed that allow you to be in charge of the mortgage being paid and such.Also the limited power of attorney because that keeps them from being able to put any additional loans on the property. The last thing you want is to do it as a lease option and get your tenenat buyer in there and pay every month, only to have the property foreclosed on because the seller was supposed to be making the payments, instead of you being in charge of all that. All profits above your agreed upon sale price would be yours.
If an owner is in pre-forclosure that meams they are behind on their payments, you offer to pay their back payments and offer them to basically take over what they owe on their morgage. Thats it! nothing more, you don't want to offer any more than that! You are solving a problem for them and helping out someone that is close to getting a morgage but not quite there yet.
Jay C
Jay C
Thanks for the responses. I definitely get how it's a win for the owner who would be in preforeclosure because I'd be paying their delinquents payments for them and keeping them out of foreclosure. But has anybody ever offered, even if it was to make sure a deal would close, to give the owner some of the money from the sale of the property once the option to purchase has been exercised?
DG family I need a little help here. I have found a property that I want to do a lease option on. The property is preforeclosure and supposedly the owner doesn't know exactly how much she is supposed to pay each month because what she said is that she is at a 6% fixed rate on a loan for $188K, but for some reason unknown reason her mortgage by lender Wells Fargo keeps adjusting. So while checking on the net for rental value in the area, I couldn't find anything. Obviously I know that before I can progress with the owner on an offer I have to know what her payments are, but when you all are doing your numbers is there a website we can go to find the average rental value of a property? Also, has anyone ever heard of any types of mortgage problems with Wells Fargo?