PROPERTY ALERTS
NEGOTIATING THE PURCHASE
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After contacting the owner you will need to meet with them in order to negotiate an agreement. Perhaps you could meet at the property in pre-foreclosure so you can get a better idea of whether or not you are still interested. Keep track of repairs that may be needed, and subtract the estimated cost from your offer.
Once you and the owner have met and decided to move forward, you will need to draw up a purchase agreement. This will involve the foreclosing lender, you, and the owner. If you have a real estate agent, they will be involved as well, and can be very useful during the negotiating process.
You may be able to pay off the default amount and assume the loan. Be sure to clear out any other liens that may be placed as part of the agreement. There are quite a number of beneficial ways to complete the agreement depending on how flexible you wish to be.
During the negotiations you would be well advised to contact any lien holders and the lender to inform them of your intentions to purchase the property. Negotiating with the foreclosing lender may enable you to lower the debt amounts as they may be receptive to a quick and easy resolution as opposed to attempting to collect the debt.
Updated: July 31
