Everyone waits until the last minute to act and sometimes filing bankruptcy the only way to buy time. You need time to check title, go through escrow and get your ducks in a row before you close. You also have to get the homeowner out before you close. Don’t let them stay afterwards. You will go to an expensive seminar.- trust me- i know.
Legitimate ways to stop a foreclosure
Please do not do anything that can get you in trouble. Remember you can’t be classified as a foreclosure consultant but there is much info out there on the internet that you can share with them.
DO NOT do anything funky like:
1. Transferring to another entity who declares bk
2. Do any kind of deed transfer
When you are dealing with a seller and taking over the property subject to the existing loan, you are going to transfer the property to a trust, with you as trustee. So in order to get the bank to talk to you, you have to get a signed authorization to release information from the seller Then you call the bank and tell them that you are the trustee and that you have this form and ask where to fax it.
California has strict laws about what you can and can not do if someone is in foreclosure. They have a special agreement called an equity purchase agreement and a five day right of rescission. There is a law that will get you in trouble if you violate it. Make sure you read every word of this and understand it.
Don’t tell anyone that you can stop the foreclosure. All you can do is educate or buy their house. Remember you probably know more than they do so try to help- be a friend but don’t make promises about their situation.