Nathan Payne’s Secrets to Closing Pre-Foreclosure Deals

You're gonna see how saucy this is. Are we gonna get a hold of them or not?

Hello, Vicki? Yes, Vicki, hi, my name is Lane. I am calling about the property you sent over to us that you're looking to sell on San Robar.

Yes, which company are you with?

I am with 123 Close. You filled out some information on one of our sites online.

I did. I'm just making sure because you're not the only one that I— I just want to make sure get the person with the right company.

Totally understand. Good to hear. I don't blame you. I would be reaching out to multiple companies too. You always want multiple offers, right? Well, Vicki, as I'm getting your property pulled up— a good time?

Yes.

Okay, as I'm getting your property pulled up here, tell me a little bit about what you got going on there.

Um, it's a 4-bedroom, 3-bath, uh, has a garage. We have, uh, there's a carport, and I have some storage sheds in I probably have to sell. I don't think that that's part of what y'all do. I don't know. It's only— I've only been doing this for maybe the last 45 minutes, so.

Oh, okay. Gotcha.

Yeah, I have appointments for people, but I guess because it's so late in the afternoon— I saw you, you're actually calling from Florida.

Yeah, yeah. And yeah, so we're— I'm actually calling you from a different state in Arizona, but that's where we make all of our calls from, so it's a little bit earlier here, but You know, we have boots on the ground there in that area of where you're at.

Well, yeah, because they're just making appointments because I guess everybody's gone. But anyways, the house is in foreclosure, so I just, I just can't. I was raised in this house with my parents and they both passed and my brother passed. Mother and my brother passed in the same year. And I just, I've got to get out from underneath it. I just.

Okay. So, so when you say it's in foreclosure, is there a date? Is there an auction date already set?

Yes. The 28th of August.

Okay. So right around the corner.

3 weeks.

Have you had any communication with the trustee or with the bank to see if they would entertain a postponement if you got an offer?

No, I didn't know that that's something I could do.

Yeah, they actually, you can, you can reach out to them, get ahold of, it's, it's mostly the trustee who you need to talk with. That's who's been sending you the paperwork. And just talk with them and be like, hey, I'm expecting an offer to come in. Can I get a postponement? You know, an extra 30— and usually they're pretty good about at least giving you another 30 days. And I can help you through that process. We deal with it all the time.

Okay, so it's just the trustee that I need to contact and try to get postponed for 30 days?

Yeah, and they might, they might want to see an actual offer in hand. That would help a lot to be able to do that. Okay, I'm trying to pull up this address and I'm having some difficulty. Vicki, can you help me out? Is the address 688 Sand Rover Drive in Orange?

No, I sent back— I guess it was— there was a Stu that texted me and then I got you. But anyways, it's, um, and, uh, it's the Google image is actually from a dirt road and there's property between the fence line and the dirt road that's overgrown. And that is what the picture is of. That's the back. That's not even the house. I mean, it's— you can actually see more, like you can kind of see the, um, the chimney on my neighbor's house and then a little bit of my roof.

Gotcha. Okay.

Not really. I don't, I don't know why the picture is like that. We are at the very end of the road and on a, on a circle. So I think there was an issue.

Well, we won't, we won't go off of that Google picture and hold you to it, that's for sure. Okay, I found it now. So it's a 3-bedroom, 3-bath, about 1,862 square feet.

Um, no, it's a 4-bedroom, 3-bath, 1-car garage, and, um, I don't know what the— I don't know square feet, but I believe it's over 200, 2,000 square foot. It's It's a big house.

Okay.

And there's a lot of land. I mean, it's not—

this isn't, you know, what is your lot size?

Really nothing. Huh?

What is your lot size? Do you know?

I have no idea. Like I said, just been doing this for 45 minutes. I was putting it off. I've just been— I— well, very difficult.

Yeah, no, I understand, Vicki. I'm here to help. I promise you that. We deal with this all the time and we can help. I've been buying real estate for the last 15 years. I've dealt a lot with foreclosures. I understand the process. I understand how to communicate with the trustee and the bank. So I'm here to help. So we— you are under a time crunch, that's for sure. There's, you know, you can't get around that. So we would need to move quickly. Like, in your best case scenario, what are you hoping for?

Are you talking about the money I want for it? Best case?

Money, timing? Do you have a place to go? Do you need to stay there after we buy it to find another place? Just the whole— yeah, in your mind, best case scenario, what does that look like?

I don't even know. I just know I need to sell the house. I don't have a clue. My whole family has died and they've died out of this house. So that's why I'm probably where I am, because there's just nobody and I've just completely shut down. But, um, I've gotten offers. I mean, I've gotten, you know, the check— a ton, a ton, a ton of the, you know, we buy your house that I have thrown away. Yeah, I don't even know.

Well, yeah, I understand. Foreclosure notices are public information, and so people find that and they start reaching out like crazy to try and buy your home. So that's understandable, right?

I know that the house is— it's worth $300,000, $350,000. I mean, it is— I don't know, damage to the house? No.

Tell me about the damage.

It— there's a window pane missing in the front bedroom, and that's all I could really think of. There's no other damage to the house.

Oh, you said there's no damage. Oh, okay, I misunderstood you.

There's one window pane missing, and that's because of knuckleheads. But, you know, it, it's not dire need for a paint job, but, you know, I mean, it could definitely do. We upgraded the kitchen, the master bedroom, you know.

How long ago?

Uh, it was before my father died, so it's probably been within 7 years. I know, okay, seems like it just happened, but, um, yeah, within 7 years. So it's, it's got the, um, you know, nicer cabinet. We put new top in the kitchen and it's got the one-piece countertop. The carpet I've been taking out slowly. It's been here for 40 years. There's really— there's nothing else that's wrong with that.

How's the roof? Do you know?

Oh, the roof is within since my father passed, so it's— I would say it's probably only about 6 years old.

Okay. You said that you upgraded the kitchen and the master. Did you— were you saying the master bathroom was updated when you updated the kitchen?

Yeah, the bathroom. Um, it was just— we put a new, um, tile down and— or, or no, it's not tile. It took the tile, plastic tile, whatever you call that. Took that up and put in a new vanity. And I've changed all the commodes in the house within the last 10 years.

Well, it sounds like you've done a wonderful job of keeping this house, Vicki, honestly. Tell me about the loan that's in place. What kind of a loan is it and how much is owed, like, to bring it current?

I don't even know. I am— I don't, I don't know.

Um, whose, whose name is the loan in?

It's in my parents' because they both had their name on the mortgage. And when my mother— my father died, then my mother died, and I could not, I could not reach out to anybody because she had it through her phone and I couldn't get into her phone and to even pay the mortgage. And I've tried top it. I went to the bank, I went, you know, I thought it was through. I don't know, it was just a whole big thing. And then I had, um, major surgery and was down, and then the depression hit me, and I've been out, just been sticking my head in the sand.

Gotcha. Okay, well, so do you—

I don't know. I know that I got the final judgment is here, and I do have company, but just give me a second. That it's like $30,000 for the mortgage and then the $127,000 for the, um, that's for the foreclosure.

So it's got a— it's— let me just repeat that. It has a $127,000 balance and it's— there's about $30,000 in back payments and fees and penalties and stuff?

No, I think that that is the actual back payments for the property. It's all right here. Attorney's fees, escrow. I don't know how they did property inspections. Nobody came in.

Yeah, they're just charging you for that because they sent somebody by probably to take pictures from the— on the outside. What's the total that it says there?

$127,318.40.

Okay, so that's the total amount that they would need to pay every— your— pay your mortgage off, pay all the back payments and interest and fees and all that? That's what it sounds like to me.

Yeah, this is the final judgment.

Okay, and does it have this— well, I guess there's a, there's a bunch of line items. I was saying, is there an amount that would reinstate the loan? You're saying, does it look like it's around $30,000?

That is from the company. Are you talking about the principal or the—

no, just what's the total of all the All the back stuff that they're charging you for.

The back payment for it is like $30,000 because that's our— maybe it was ours. They send it and it's to my parents and I don't open it. And, um, I have opened them, but they're in— I can go get it. It's in the other room. It's just for the property. And I think that's who took over the mortgage. The mortgage was through Bank of America, but then I guess somebody took over the mortgage. I don't really know. It's the first time I've even talked about it without completely losing it.

Yeah, well, you're doing great. You're, you're doing great. Yeah, Bank of America probably just, uh, sold it to somebody else. Now tell me, your, your mom passed away how long ago?

Um, November 2022.

Okay, and did you have to go through probate in order to change title into your name and that you're authorized to sign and sell it and all that?

I went through legal aid and during that time I lost a phone, the internet, power, water. I had nothing and I had no idea what was going on. And they sent me a letter and the final judgment that yes, it was, it was done through probate. And, um, the name has been changed from Jim and Betsy Schultz to Vicki Straight.

Okay. So as far as you know, you do have authorization to sell the home.

Yeah, I have, I have a case number from, yes.

Perfect. Okay, let me see here real quick and just verify. Okay, so I show that the home is in the estate of Nell E. Schultz.

Yes.

And you're probably the director of the estate or the controller of the estate.

There's no paperwork for that, but yes, I am.

I mean, Okay, so I think what would be best here— let me see what the best number that I could come up with and be able to pay cash and be able to let you stay in it for a little while afterwards so you're able to comfortably find another place. I know that I can get that approved, like, without even talking to my office, uh, for 30 days. So say, you know, if I can come in here and get this closed before the foreclosure date I could give you another 30 days to remain in the home to be able to find something else. Is that doable? Is that something you think is fair?

Yes, it's very doable. That's, that's, that's perfect.

Okay.

Because I figure I would have to have, you know, I would have to use a big chunk of whatever I got, pay movers to come in.

Yeah.

Move it all as fast as they could. I mean, there's been 15 people that flipped it. House. It's just— I'm just buried in it.

And that's understandable. You've been there a long time. Um, so let me ask you this. Total that is owed is $127,300. How much are you needing or hoping to get on top of that?

I'm getting— I want as close to $300,000 as possible.

Okay.

I mean, the houses are going for $400,000 around here, and there is a ton of— and there, they— the, the house that went around the corner from us, and it was right at— right under $400,000. Doesn't have half of the yard that we have.

How long ago was that, do you know?

I think it was— I talked with my other neighbor, it was around last December, I think, is when it was sold.

Okay.

Or maybe— I don't know, that's when I talked to the neighbor about what they sold it for, and the last time I did anything.

Okay, well, I'm on— I'm looking right now. I'm looking at all the stuff that is sold in the last 6 months, and I'm only going back 6 months because that's all an appraiser is going to do. Anything past 6 months is no longer, you know, a comparable anymore because that's just too long. And I don't see anything that has sold over $400,000. It's all like what you said in the beginning, you know, in the mid-$300,000s.

Yeah, it was sold right under $400,000.

Yeah, the highest one I see is $385,000 and it was almost 3,000 square feet. So quite a bit bigger. So I think your initial, your initial number was accurate in the mid-$300,000s of, you know, what this thing is worth if it's all fully updated and turnkey. Um, right, you know, and somebody comes in here, does the updating.

Yeah, that's with new paint on it. I understand that. I do, I do.

So, and again, we're gonna have to move quickly, right? I mean, time is not your friend right now, because if we do not— if we do not get a postponement from your trustee, like, that is a very, very fast close. Typically our, our fast closes are like 30 days, and those are pretty quick, you know.

One of the reasons why I, um even contacted y'all because it said that you could do it within 7 days on the internet, but that's here nor there. I understand you can only do what you can do. I have, you know, this is, this is not something that I want, but it's something that I have to do or I'm just going to be, I mean, they're going to put me to the curb with nothing.

Yeah. Well, we're here to make sure that does not happen, Vicki. So let me just kind of tell you without seeing it kind of where I would be. And if the title company can get done within, you know, 14 days, 7 days, we can close it that quick. A lot of the delay that happens is with the title work. You know, we have to open escrow with the title company. They run to make sure I can get title insurance, make sure that loan is paid off. It just takes a little bit of time, which is— a lot of it is out of our control, right?

Sure.

Sorry, I'm just kind of crunching some numbers here to kind of tell you where we would be with this, with all this information in mind and the, and the the condition that it's in, uh, we could probably be right around $230,000, $230,000 to $235,000. And that is a quick close. We're going to pay all the costs, so that's a net number to you. So after your mortgage is paid off, which if that's all correct, if it's $127,300, you will walk with about $104,000.

Okay, so All right, is that something you want to do, Vicki? Well, I have all these other people that are coming. I have Monday appointments, and, um, I guess I need to talk to the trustee. I have to do that, start trying to get a hold of them first thing in the morning. As far as—

yeah, I would, I would recommend doing that. Get a hold of them as fast as you can, right? And as far as, as far as meeting with all your other people, you do what you need to do. I'm just telling you my offer is good today. I know that I can get that approved. We're buying houses every single day. So come Monday, I don't— I'm not going to know if my offer is still good. You know, I might have bought 3 other houses and spent a lot of our money, and now our money for the month is kind of running up. And I know that with our budget and everything, I can get that approved today, you know. And maybe obviously you don't have to sign it today, but if we could get it signed before the weekend, I know that I could press forward and get involved and help stop the foreclosure with your trustee.

Okay. Well, um, like I said, this is the very first time that I've talked to somebody, so I can't really, I really can't commit. I have to, I have to do due diligence and at least talk to other people.

Totally understandable.

And if, you know, if you can't do it on Monday, you can't do it on Monday. You know, it wasn't meant to be.

Yeah. Well, I would recommend just, this is just a simple recommendation. Tomorrow's Friday, right? And you have the whole weekend. Whoever you have an appointment with on Monday, I'd give them a call and just say, hey, I'm up against the clock here. Can you get out here any sooner? Can you kind of give me numbers over the phone? You know, try and filter out as many of these people as you can so that, so that we can meet this timetable, is what I'm saying. Does that make sense?

Because I'm pressed for time.

Yeah.

Okay, you're right, you're right. I don't need to wait. I need to have an offer. I need to make my decision by Monday at the latest.

Yeah, I would, I would really try and I would hope you can have a decision by tomorrow end of day so we could open escrow on Monday morning and start that process right away. Whether it's me or whether it's somebody else, Vicki, honestly, I'm just, I'm just shooting you straight. I know how, you know, things can get delayed when you open escrow and the title company takes a little bit longer to get the payoff from your lender and that delays things. I just, I see it all the time.

You're talking complete foreign.

Sorry about that.

Anything about— I mean, I know these words that you're saying, and I know enough to get in big trouble.

Yeah, sorry, sorry about that.

Yeah, I just— I've never done anything like this, and I'm scared. You know, I know what I'm doing, so, you know, I just need to, um, educate myself, and, um, I definitely I thank you very much for telling me about the trustee. I will try to contact them. Well, I'll start trying to contact them now.

Awesome. Well, Vicki, I'm here to help. I'm completely here to help. We do this all the time. We save people from actually going to the foreclosure. And because at the end of the day, if it does sell at the trustee sale and it's bought by a third party, like by an investor, they're going to come knocking and they're going to want to get the house vacated and get you on your way. And This way we at least we put money, a lot of money in your pocket, and we're able to let you stay there for another 30 days. So I— whatever you need, I'm here to help. Um, do you have—

your name is Lane, right?

My name is Lane, yes. And is—

and your last name?

Peterson. Lane Peterson.

I can't see. Hold on a second, my eyes is all watered up. Okay, Peterson. And do you have a number I need to contact you, or you just contact me back?

This number that I called you on is the best number to get me at. Do you want— I can, I can text it to you when we hang up here.

No, I got it right here. It's 321-234.

Awesome. Hey, Vicki, is there anything that I can do to help you with your due diligence that you are saying you need to do?

I don't know. I don't think so. I've just had to find the trustee. I have to find my glasses.

Hey, would we hang up here? Do me a favor and take a picture of that statement that you just read off to me, and if you could just text it to me.

The statement?

Yeah, you were— you, you read— you read off the numbers from your, your last statement.

Oh yeah, from the, um, the foreclosure notice.

Yeah, yeah, if you could take a picture of that and send it to me, I'd like to look at it.

It's a judgment. It's, um, it's a couple pages long, but there You want just the nitty-gritty of it, the numbers?

Yeah, I'd love to look at it.

Okay.

Okay, Vicki, call me, text me, whatever you— whatever you need, any questions you have. We got— we got— we got to get moving, so let me know how I can help.

Okay, thank you, Lane.

Thank you, Vicki. All right, great talking to you. Poor lady.

Boom!

Look, that was a masterclass, everybody. As I'm writing down what questions you need to ask to someone that's going through pre-foreclosure, that was amazing. Great job. Hey everybody, what's up? It's Nathan Payne, and for the first time ever, we just released this insane training bundle that has literally everything that I've learned from doing a combined 4,000 deals in real estate, all from starting with absolutely no previous business background experience or any real estate experience. Plus, there's over $19,000 worth of free gifts that we're throwing in, all for an insanely low, low price. If you want to get your hands on this, be sure to click the first link on the description below right now.