Need help with Pre- Foreclosure

So, I talked to the seller, she is really motivated, having divorce, and in June she will have to leave the house, because can't afford to pay alone.She is behind $7.000, and would like to have $3.ooo to be able to move out.She thinks the value is around 90K, because last year the neighbour sold for 80K a 2Bedroom house.
The house is remodeled, in good condition, need minor repair.
Can someone guide me, who has experience with pre-foreclosure?
Please...

So, because there is not too much equity, I guess I have to try to negotiate with her bank.Ask the lender to take less.Is that right?
Or let it go
and tell her, she need a Qualified Short Sale Real Estate Broker or Agent, who will list her property for sale and negotiate all details and loan discounts with banks so she can be free of this debt.

Any advise?

Sounds like a short sale to me. You will run into a lot of these when working the pre foreclosure market.
Just for educational purposes you may want to determine what the property would actually SELL for. Do this by checking comps sold in the last 90 days, currently listed comps and currently under contract comps.
You may also want to determine the rehab/remodel costs for educational purposes.
This is what you need to be able to do in a rapid manner. Determine TRUE ARV.
Once you know true ARV and remodel costs then you can make offers based on the real numbers.
It is great you are taking action. This is how you learn this business! Take advantage of every lead you get and evaluate it. Then you will become fast at evaluating deals. This is a very important skill since we need to make multiple offers every day to make money in this business. Most offers or leads go nowhere!
Lets take 25 to 1 a little further. That is 4 out of 100 right? 96% of the leads and offer you make go nowhere. So we need to be able to analyze and offer quickly!
Once again, good work! You are on the way!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

Thank you so much for taking the time and answering for my question.
It is always a pleasure to read your posts.
I talked to some potential investors today, and really practice makes everything easier. I planned my whole phone call, what to ask, what to say, and finally I realized that there are people - people on the other side of the phone, who need my help.
I am trying to help this seller, but seems like she should start the short sale procedure, which means, she won't get the 3K moving cost, she needs. But still much better, than go for foreclosure.
How do I get the Tru ARV?
She said, the house is remodelled, good condition walls have new paint, only one of the bedroom needs to be tiles put down(what she bought already)because they planned to change the carpet.She thinks, the total repair cost would be couple hundred dollars.
I promised for her to run the numbers, and contact her tomorrow.
So the best for her, I guess, to let her attorney and realtor handle her short sale.
Right?
Thanks

If she owes 69 and is behind 7, that's 76K. If the house is realistically worth 80-90, have the seller talk to the bank and see if she pays 3500 on the 7000 she is behind if they can add the other 3500 to the back of her loan or if she can make extra payments on the remaining 3500 to stave off the foreclosure. If the bank accepts that, then you have the option of buying the property subject to or doing a lease option. The 3500 will come from a down payment or option money depending on how you get involved with the deal. Either way, for her to think she will get to walk with 3000 is unrealistic...more like 1000 if she is lucky. Buyer or T/B would need to bring 5000-7500 to the table. Don't know if those numbers would work in your area, just the first thing that popped into my head.

Thanks for the advice.

Nice to see the bandit signs working for you! Have you been getting many leads from them?

Also, I hope it works out for the seller, she seems to be in a very distressed situation and therefore flexible. Try your best to help, but if you think its out of your hands then try referring her to a good RE short sale negotiator or specialist.

Remember "No good deed goes unpunished."

Keep working hard, you're doing great!

Thanks for your encouraging words.
So far I got 1 lead for the 20 signs, I put out.Not very productive .2 was taken right away after I put them out, then just for testing I left them out for Monday, Tuesday,and nobody touched them until today, when 2 more disappeared.The rest is still there.
For my craigslist ad I had 3 calls from investors, and 1 of them wanted to be on my list.
This preforeclosure deal seems like need to be gone, because I don't see I can do anything else, but give her some advice to go for short sale.
I tried, but the numbers just don't work.
I was driving around, and collected sale by owner ads, and try to go in that direction now.
How is it going for you?

"This preforeclosure deal seems like need to be gone, because I don't see I can do anything else, but give her some advice to go for short sale.
I tried, but the numbers just don't work."

What did you come up with for a fair market value on the property? You can't go by Trulia averages. You have to look at what similar properties in that area sold for. If a 2BR sold for $80k and her house is a 3/2 with a pool, this property may not be a candidate for a short sale. Go to www.trulia.com and search the address. Once the property shows up, there are a bunch of tabs at the top, one of which is comparables. That will give you a good start on establishing the market value.

Stu:
blatant ads like this should be posted in the advertising section! Get on the bus, Gus!

I am actually looking at a property on Saturday. She is in preforeclosure.
Not sure of her numbers yet, but properties in her area are around 89-100k. She paid $115 a few years ago, and is hoping to get $85. But is now considering a short sale.
I did put in an offer for a short sale last fall, and it was also a probate problem.
But the heirs were in agreement for a short sale, also their atty agreed. But Bank Of America had other issues. I even had an end buyer. Because of all the legal problems and liens that we found, we did not pursue it further.
Here is one thing though.
You can do a short sale on a property but remember this can take several months. With the women I network with at my WINGS group, there is a couple gals from Mayfair Mortgage that have had good luck getting these done in as little as two months.
To protect myself, before I knew these girls did this, I called an agent I work with at times. I asked her to write up the short sale, and paying her would be worth it, because she knows how to do it. There is a site on the internet, that savvy people can use to run through the short sales. My agent has done this several times.
Some lenders will give the owner a small amount of money to move out on. The heirs to my property decided to sell the keys to the bank, but then the bank took them to court for other things. Our offer was in, but we finally dropped it as too many things were going on with it. The home now sits empty and it is too bad.
But if the numbers are right, you can get someone to represent you and let them handle the paper work and it took a lot off of me. Joan had to deal with the bank and atty. while we were trying this.
Was a good learning experience, but now I am braver at talking to other owners behind on payments.
Good luck
Sandi