Wednesday, 22 August 2012

How to structure your foreclosure deal


The following are basic ways for you to construct a deal during the foreclosure process:

1. Grab an Interest

By taking on interest Purchase Contract or an Option Agreement you can able to manage or control a property. You do not require a legal title of the property, and you can profit by selling it in that contract.

2. Grab an Ownership

You can able to purchase property by using the existing debt on the property and can also cure the loans by using cash in order to stop the foreclosure process. You can grab you ownership by the following tips:

·         Pay your Loan:

Get the legal title of your property by paying off the existing loan, like a conventional                                                                 purchase. When the new loan pays off the loan in foreclosure, the threat and the pressure it causes will get rid off.

·         Don’t stop the Foreclosure

You can get your ownership without paying off the loan, but subject to the foreclosure threat and its time line. The important thing is that the seller understands your plan, the risk, must agree to writing towards it.

·         Back door approach

In order to avoid having foreclosure on their record the borrower must accept to deed the property back to them. This process is called "Deed in Lieu of Foreclosure." You can approach the borrower with the "Deed in Lieu" proposal once you have initiated the foreclosure. This in turn helps to reinstating the senior loan and getting the property subject to those loans.

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