OfflineHello
I was wondering how you purchase equity in a preforeclosure? What math do I use to determine my offering price? If I purchase the equity only, what happens to the original loan? Who pays for that?
If there is a better way to purchase preforeclosures, i would like to hear?
Thanks for your advice
Anne
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I'm not sure if I'm understanding your questions but here goes... the equity is the amount between the fmv and what is owed on the loan. The equity is what determines if the property is worth purchasing. What determines how you purchase a preforeclosure will be if there is equity built in, then you would make an offer with the home owner. If the property has no equity (meaning it's upside down) then you would have to work out a short sale with the lender. Hope this answers your questions.
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Im brand new at this( Five days). I have a question..What if you find a property thats in Pre-foreclosure and whats owed/default was very low,(like:35,000) but the fmv is is 100 % more. What should my offer price.. and how do I go about it.