Offlinewhat if someone is behind say $2,000, and they are moved out and are willing to do a lease option. how do i pay the $2,000 they are behind? is the only way to collect from the downpayment from the tenant/buyer? and then use some of the downpayment to pay the money thet are behind?
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In a nutshell that has to be paid or the property remains in pre and on it's way to foreclosure.
The Pre-foreclosure Sale (PFS) Program allows the Borrower in default to sell his/her home and use the Net Sale Proceeds to satisfy the mortgage debt even though these proceeds are less than the amount owed.
That is about the simplest explanation there is. Generally investors get the client out of foreclosure by paying cash for the property and everything is taken care of.
Randy Bailiff
Dean Graziosi Real Estate Investment Coach
Kevin,
Yes, say you receive $5000.00 down as the option from a tenant /buyer. You pay the $2,000.00 and keep the $3,000.00 just to start the deal! Just be sure to do your due diligence. Make sure what is actually owed. You will want to make sure there is equity in the property too.
Good Luck!
John W
John and Julie Wakefield
JCW Properties, LLC
Yes, that $2K needs to get to the mortgage holder ASAP. Make sure you get a letter saying the past due amount is paid and the house is out of the pre-foreclosure process.
Randy, that PFS program you talk about: Isn't that just another name for a Short Sale? John's right! Do your due diligence - make sure you know exactly what's owed before you pay a dime. No one wants an alligator!
Paul: "I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when my fear is gone I will turn and face fear's path, and only I will remain."
Duke Leto: "I'll miss the sea, but a person needs new experiences. They jar something deep inside, allowing him to grow. Without change something sleeps inside us, and seldom awakens. The sleeper must awaken." - "Dune."