CHAPTER

Negotiating with the Lender Pre-Foreclosure

In this chapter we will show you how to negotiate with the owners lender in the pre-foreclosure time period. This may be before or after you have put an agreement together with the owner to buy the owners equity. If you are looking for the information on how to negotiate with the lender after the foreclosure sale, please turn to Chapter 17, Buying from the Lender.

Before we talk about negotiating with the lender, we need to give you some information on how real estate title to property and real estate financing of property interact. Once you have this information, you will better understand where real estate lenders are coming from and how best to negotiate with them.

Real Estate Paperwork

Understanding the paperwork of real estate is critical to your success as a real estate investor. In this chapter we are going to talk about the paperwork involved in the owners title and lender financing. In the last chapter of the book we will talk about the paperwork necessary for you as a real estate investor to make and close deals.

There are three aspects to the title and lending paperwork. First,there is the paperwork involved on the title side. Second, there is the paperwork involved on the financing side. Finally, there is the paperwork that bridges the title and financing sides and that is known as the security side.