Re: 1st preforeclousre need help!!! - Posted by JohnB_NJ
Posted by JohnB_NJ on April 17, 2000 at 23:02:57:
From you post I see that there is only around 15k in equity in this house. So, I don’t see much room for your seller to get atleast 10k of her equity. Let’s for a minute assume that she put it up for sale with a Realtor. Now she would have atleast 6% commission or $4 to 5k. Since she is facing foreclosure and it needs some work, she will have to list it under market value to attract a quick sale and this would reduce her equity by another 5 to 10 grand. Not to mention her closing costs So, there isn’t much left of “her equity”.
I did a similiar deal 2 months ago. I brought the mortgage current and gave the owner 1k of her 20k in equity. She was about to lose all of her equity and her credit to boot.
Besides, I have found out the hard way, that the first 10% of your profit is “air”. Meaning, holding costs and various other costs you forget to factor in.
So, Joe, this is a perfect “subject to” deal. Bring her mortgage current and maybe give her alittle “walking money”. Take title in a Land trust (see Bronchicks articles and website, www.legalwiz.com) and maybe sell owner financing on a Land contract with a wrap mortgage or lease option.
Let us know how you make out.
PS: don’t forget to have the title check after you get it under contract. She might have other liens and judgements on the house.