Ep 091- How To Get A Pre-foreclosure Subject To Deal Done in 2 Days!

On this episode we talk about a Subject To deal that Jeff got done in 2 business days. Not without risk either. Jeff had to put down money before he closed on the property. This deal is creative in a few ways, Jeff was able to get the Seller to commit to working with him to get the property closed. He got his title company on board up front and made sure they could close in 2 days. Jeff had to threaten a lawsuit against the Trustee attorney and the bank in order to get a payoff statement, and 12 hours later was able to get the reinstatement and payoff for the first loan and the payoff for the second mortgage. He bought it subject to both mortgages, reinstated the first loan for 15K, got the second discounted for 5K, offered to pay the Seller 20K and was able to immediately sell it to for a 40K profit to the person who brought the deal to him. Plus he was able to coach his Buyer on how to buy on Hard Money and then refinance the property, so the sell could be done fast. 

The biggest risk Jeff had to take was to pay the reinstatement of the loan without transferring title before hand, because the Seller lives out of state and they had no time to get closing docs signed and back to the title company before the Trustee Sale. Jeff shares what he would have done differently in retrospect to protect the money he paid to reinstate the loan.

SO... suggestions to get Pre-foreclosure done fast- 

1. Get the Seller's commitment up front to working with you to get the deal closed.
2. Contact your title company immediately to make sure they can close on your time frame.
3. Threaten a lawsuit against the bank and/or Trustee to get a payoff/reinstatement.
4. Call the bank on the Seller's behalf so you're in control and not waiting on the Seller.
5. Reinstate the loan before closing with the Seller if you don't have enough time to complete the transaction before the Trustee Sale/auction.
6. File a Notice of Interest/Memorandum before reinstating the loan if you are unable to close the sale in time so to have some kind of security on the property.
7. Lastly, if you're wholesaling/wholetailing the property, line your Buyer up with a Hard Money lender to get the deal done fast.

And to get special access to a step by step video on how to structure offers, text CFP to our hotline at 877-409-8090 or click HERE.