Closing the deal
You are about to realize an investing dream. It’s time to make it happen. Segment 8 gave you the essential things to accomplish once the owner says “yes.”
Owners might be more willing to work with you if you are flexible to help them out in creative ways that address their situation. You could offer to let them stay in the house for a certain amount of time (possibly paying rent) until they find a new place to stay. You could offer to pay their housing costs for the first month (or more) after they leave the property. If you’re purchasing the property as an investment, you may let them stay and pay rent until you decide to resell the house. You may even have to offer to split any equity with them. There are numerous ways to work out an agreement that benefits both parties. Remember, selling the property during pre-foreclosure allows owners to avoid a foreclosure-marred credit history, making it easier for them to find a new place to live.
Segment 6 discussed “assuming” the seller’s loan(s). This might be an option that will allow you to leverage the seller’s position to your advantage. Just remember that lenders do not want loans to be assumed. They would rather put you through a qualification process by assessing your income, debt, and credit.
If you are already having a Realtor help you, have him/her assist with this process. Even if you are doing this on your own to save commissions, you will need a Realtor to list the property on the MLS to sell it as quickly as possible. Make a deal with the Realtor for “reduced” commissions to handle BOTH SIDES of your transaction (buying it from the owner AND selling it for your profit). Again, unless you are experienced at the sales process a Realtor will save you time, mistakes, and money.
My next post will finish up the final details.
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