Posted by Bill K. (AZ) on March 31, 1999 at 23:43:36:
Debby,
You certainly don’t have a lot of time to act. Big question: Can property be rented to cover VA loan PLUS pay you, or a lender, a decent return on the $35K? If you considered lease/optioning this property, you could be looking at a $20,000 payday.
Regarding the pool, I’m not sure how much a cracked pool costs to repair. If it’s expensive, say half the cost of a new pool, you’ve just cut your payday in half. That would make this a borderline deal for me. However, if you could just cover the pool and sell it for $127K without pool repairs, it’s worth pursuing.
I’m not very creative with my deals yet, so this analysis is pretty simplistic. But, I hope it helps.
Got a call from woman 4 days from foreclosure auction. Says about $65,000 left on VA non-qualifying assumption loan (10% rate, PITI = $1057), but pymts haven’t been made for about 2 yrs. Talked to the mortgage co, they said it would cost $35,250 to reinstate, and they won’t discount, cuz it’s VA. Property After Repaired Value is $127,000. Probably needs $5,000 of work from looking in windows, + it has a “cracked pool” per the woman. Is there any deal here? I hate to risk $35K cash. (Haven’t done title search yet, but she says no other liens/judgments)