Tim Bell explains why targeting mortgages from 2000 or earlier works for pre-foreclosure deals. Around year 9-11, loans shift from interest-heavy to principal-heavy payments, building equity faster and making sellers more willing to negotiate. He recommends getting pre-foreclosure lists directly from your title company.
2000 or before.
Somewhere around 9, 10, or 11 years into the mortgage.
Now the next one on our list here is pre foreclosure properties. Now this says deed origination dates of 2000 or before. The reason I like older properties, properties where the last loan deederigination means the last loan that was taken out on the property is because somewhere around 9, 10, or 11 years into that mortgage, the, the amortization schedule flips and it goes from being mostly interest to being mostly principal. Okay? And as a consequence to that, that principle builds up faster, which means the equity builds up faster, which means they're easier to negotiate with because they have more equity. Typically. Now it's not absolutely necessary that it be before 2000 or before any particular date or whatever, but the longer they've been paying on it, typically the more equity position they have, which means they may be willing to give some of that equity position away to you in terms of lowering the purchase price of the house. Another place, another thing that your title company can do for you is to get you that list of people that are in pre foreclosure. These are people who have missed payments and the lender has filed either a Lis Pendens, which is a pending litigation, means that they're going to sue them for the mortgage, or, or a notice of default. A notice of default means that they've defaulted on their mortgage loan and they're involving the trustee and that and all that. So again, your title company is another great source of this pre foreclosures. People that are in pre foreclosure.
