Expert: Dick Dennis - 10/9/2008

Question
QUESTION: Hello My name is Ron Perez and I live in the city of Lakewood,Ca.  I am hoping you can help me or direct me, I am seeking Property Investors, people who are interested in Buying Homes as an investment and using it as a Rental.
My home recently went into foreclosure  and the only way for me to be able to stay in my home is to find a person  who is interested in buying my home and renting out to me.  My home is located in the city of Lakewood, Ca. My home is Banked Owned by CITIGROUP at est. $ 342,000.00 3 bed 2 bath Upgraded Home. Excellent Cond.
If you know of any customers or anyone else that you may think would be interested in helping me out, please contact me as soon as possible,
If you need to contact for more information call me at
562-866-6598


Thank you very much for any help you can give me.

Need help before October 17,2008




ANSWER: You're not making yourself clear, Ron. First you say you "My home recently went into foreclosure," then you said the house is "bank owned." I get the feeling you are not understanding the foreclosure here in California.

A house enters the foreclosure process with a NOTICE OF DEFAULT. From that day, it takes a total of 111 days or as is usually the case, about four months before the bank actually conducts the foreclosure auction sale and takes over the property.

If you recently received a notice of default, the bank DOES NOT own the property . . . yet. If the bank already took over the property because no one would bid on it at the auction sale, then the value of the property is too high for an investor at this time.

Are you the Ron Perez who lives on Coldbrook and have lived there for 12 years? Or are you the Ron Perez who lives in a condo on Nectar? I don't hold out too much hope for you if it is the latter. Get back to me and I can continue this. I wish you well.

Dick Dennis        dixiedee13@aol.com

---------- FOLLOW-UP ----------

QUESTION: Dick
I am neither one of the Perez's that you mentioned, my home is owned by CitiBank, the house is listed at $ 300,000.00 and what I am looking for is a BUYER who will Buy the House and rent it out to me  .
Thats it.

Ron

Answer
Okay then, Ron, this is the story: Since the house already belongs to the bank, you better make plans to move. Sorry to tell you this, but those are the facts. The bank is looking for a buyer who will live in the property because lending practices allow a buyer who occupies the property easier down payment and terms rather than an investor.

An investor is going to have to come up with a minimum of 20% as down payment and have very good credit. I am sorry I cannot help you in this down market situation. If an investor was willing to pay, say, 50% down payment and offer, say, $175,000, I think it might work. Otherwise, make your plans to move. You delayed too long. I wish you well.

Dick Dennis