Key Takeaways
- Pre-foreclosure purchases are ethical when the seller nets more than foreclosure and has considered all alternatives.
- Red flags for impaired capacity: confusion, extreme distress, substance abuse, third-party pressure.
- Never request same-day decisions from distressed sellers—provide a minimum 3-day consideration period.
- When in doubt about a seller's capacity, pause the transaction and suggest they consult a trusted advisor.
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Test Your Knowledge
1.What must an investor always recommend to pre-foreclosure sellers?
2.What does capacity assessment involve in distressed seller transactions?
3.What constitutes foreclosure rescue fraud?