If I'm looking at a foreclosure listing, (through foreclosurealert.com or similar,) is the "Amount of Default" how much is left on the loan?
The FMV of the property is 393,000 and there is only 17,000 left on the loan, (assuming the "Amount of Default" = the amount left on the loan, and the answer to my very first question was yes.) Would I be able to contact the owner and offer them 200,000 on their home? Then contact an investor who'd be willing to pay around 250,000 to own the property? (250,000 = 200,000 to owner, 5,000 to me, 5,000 in closing costs, 10,000 in back taxes and other liens, and 30,000 in renovation/repairs.) Is this a fair deal for everyone? The owner pays off their loan and walks away with 182,000. The investor acquires a property for nearly 40% below FMV and I get 5,000. Does this all check out?
One last question: Does "Notice of Default" indicate a pre-foreclosure, while "Notice of Trustee's Sale" indicates a foreclosure? Sorry, still VERY new at this.
First-year college student with big dreams who just finished Dean's book this morning