That’s right VCJIM, NOD buying only works if the NODder has equity, substantial equity. Hypothetically, say at $630K house at current (real, sellable) market price with a loan balance (all combined) of $500K in NOD and knowing their really heading to foreclosure.
The sharks buy it at $525K if they’re kind (and it’s immaculate, less if not. Let the buyer walk away debt free or small change in pocket if they haven’t listed, do quick window dressing, pop the house on the market 5% below market (below the real selling market) at $600K and walk away from a sale with $50K or so in their pocket.
That’s were the problems start. If you don’t have significant equity at a quick sale amount and not needing significant repairs, a foreclosure flipper can’t get you out. There’s no money in it for them.
A non-pro, is approaching it like a real home and you’re really just doing a distressed sale. A big part is educating the seller, that the distress, is really distress and the train is rapidly leaving the building on the ability to get them out.
