reipro
Contributor
We have been working real estate for the past 7 years and 99% of all of our deals are preforeclosure. Most of them we have either purchased on of the mortgages on the property or went directly to the HO.
Use some of your own experiences to understand what I am talking about when a house goes into foreclosure.
Here is what I call the order of priority.
There are 2 people that you can deal with 1 is the HO and the other is the bank.
The HO is going to make an emotional decision based on there current circumstances. The bank is going to make a business decision.
How many people do you know that buy mortgages directly from banks? (none a few)
How many people do you know that chase HO's that are in FC? (maybe a few more)
How many people do you know that buy houses at the auction? (maybe a few more)
How many people do you know that buy houses from realtors that are REO's (a lot)
If you look at the process of Foreclosure buying directly from the bank before the sale is at the top of the food chain. We have wrapped up the deal before anyone else even gets a chance to get at it.
If you chase deals where you talk to the HO in FC and I have bought the loan at a discount I still make the spread even if you get the house. I can still chase the HO to get a deed instead of it going to FC.
If I get bought out at the auction I still make the spread and someone else gets the house.
I take the house back at the sale I still have bought the house at a great discount.
As you can see there are many benefits to being at the Top of the food chain.
Hope this helps!
David
If you think you can or you think you can't your right - Henry Ford
Use some of your own experiences to understand what I am talking about when a house goes into foreclosure.
Here is what I call the order of priority.
There are 2 people that you can deal with 1 is the HO and the other is the bank.
The HO is going to make an emotional decision based on there current circumstances. The bank is going to make a business decision.
How many people do you know that buy mortgages directly from banks? (none a few)
How many people do you know that chase HO's that are in FC? (maybe a few more)
How many people do you know that buy houses at the auction? (maybe a few more)
How many people do you know that buy houses from realtors that are REO's (a lot)
If you look at the process of Foreclosure buying directly from the bank before the sale is at the top of the food chain. We have wrapped up the deal before anyone else even gets a chance to get at it.
If you chase deals where you talk to the HO in FC and I have bought the loan at a discount I still make the spread even if you get the house. I can still chase the HO to get a deed instead of it going to FC.
If I get bought out at the auction I still make the spread and someone else gets the house.
I take the house back at the sale I still have bought the house at a great discount.
As you can see there are many benefits to being at the Top of the food chain.
Hope this helps!
David
If you think you can or you think you can't your right - Henry Ford
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