Marketing to Foreclosures

[Tmartinloan 0]

I'm just brainstorming out loud here maybe somone can help me. What if you were to target all the foreclosures,

 

"Sell your property quickly by lease option, No equity no probelm"

 

Obviously there are a lot of homeowners upside down that want to sell. So presenting yourself as a management company that took over delinquent homes could take care of there problem correct?

 

Then you can place the tenant buyers into the homes on lease option. Set up an escrow account and hold on to the rent payment until you could negotiate a short sale with the bank....

 

But then what if you cannot negotiate a short sale with the bank? I'm sure the bank would negotiate a short sale but you would have to guesstimate what the homeowner could qualify for as far as the purchase price.

 

Then there is the problem with the non refundable option, well if they cannot exercise the option because you cannot clear title. Then the option becomes REfundable....

 

Is there anyway to make this work? It seems like there is a huge need if we can figure out a way to make it work..

 

Any thoughts?

[Jonathan RexfordFL 8]

Lease option a property that is behind on payments is nuts. With you only getting 2-3% as option fee is probably not going to be enough to bring current.

 

Here is how I would approach it.

 

Go and rent the property as a short sale. Do a month to month lease with a tenant. Start working the process with the lender with a short sale. I can tell you that I only get about 1 in 10 successful. I hear some people doing 70% which I don't believe. If you get the short sale done you will have to set it up as a double close because you will not be able to fund a succuessful short sale being in the middle.

[MichaelC 160]

Thomas, way too much trouble for me. Like Rex said, mixing lease options with a preforeclosure is asking for trouble. Too many things out of your control that can affect your payday. Stick with simpler, less baggage laden deals. There are many to be had.