Take control of preREOs during foreclosure to maximize your investment returns.
The Smart Investment
Boot Camp: Learn To Profit With The 4-Step preREO Strategy
- Find first mortgages secured by a vacant property in your area.
- Bid, negotiate, and partner on mortgage notes direct from lenders.
- Take control of the property legally during the foreclosure process.
- Make a profit from rental income and selling after foreclosure.
Local Investors are the Solution
preREO investors have the local advantage. With the assistance of Activist Legal, investors have a local court appoint a receiver of their choice and arrange to cost-effectively repair, lease and maintain the property during the foreclosure process.
Lenders are willing to partner on these notes at a sizable discount to market values, mitigating their losses now and increasing the potential returns for investors, a win-win.
We Have the Experience
Program Details
- Browse preREOs sourced directly from lenders at discounted prices
- Contribute 25% of the price, preREO contributes the remaining 75%
- Earn everything over a 12% annual return paid to preREO on their 75%
- Pay a program fee of 5% of Purchase Price or $2,500 minimum, whichever is greater on the acquisition of the note
Servicing
State laws typically require that a licensed mortgage servicer services note investments and this includes preREOs. Thus, we have arranged with AHP Servicing to service preREOs for $95 monthly.
Solution to the Problem
Legal
We partner with Activist Legal to get a receiver appointed as well as start or continue foreclosure. Depending upon the status of the foreclosure action, your expected future foreclosure costs can be estimated by how far along the action has progressed at the time of your Participation Agreement.
Activist Legal follows the Fannie Mae Foreclosure Allowable Attorney Fees which the investor can use to review the foreclosure fees for each state.
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