Reconveyance Foreclosure
I want to buy a foreclosed home, tell me what you think of this idea. Is it possible?
I’m wondering if I can just go directly to the person who is about to lose there home to a foreclosure, talk to the owner, take out a loan for what they owe and buy it from them directly. That way I own the house out right without the whole right of reconveyance thing, plus if they’ve owned the home for a little while and didn’t have an interest only loan I would be getting a discount due to all the equity they already have in it. Is this possible? Does anyone have any advice on this kind of thing? I’m just assuming they would rather not screw their credit up and get out for underneath the house.
After thinking about what Rex said, is it possible to give the owner money on the side so I would be able to get this instead of having to go thur the process of the foreclosure? Is that legal?
The plan is OK. But, you left out a few details. They may have a prepayment penalty on their loan, and it can be very high. Selling may cost them another 20-30k.
If they are not paying their mortgage the likely do not pay other people monies owed either. This would make pretty likely that their are liens on the property. Those have to be paid before they can sell.
BTW, if they are already in foreclosure they already messed their credit up.
You would also be surprised how many people would rather loose it all then break even on an investment.
Quick Reconveyance Method
