Posted by Potash on December 06, 1999 at 21:22:57:
Unless there is flood or fire damage, a house which sold for 86k in 1998 is not going to be auctioned off by a Real Estate company for 21k, I don’t believe it! If you can’t scrap up 21k to buy an 86k house you are in the wrong business.
An 86K House For $21K! Now What?? - Posted by LJQ
Posted by LJQ on December 06, 1999 at 17:50:10:
I got this call today from one of my ads
Helen is a fascinating individual. She is on disability and for fun she checks out real estate…sales…auctions…the whole nine yards. Her disability income is $685 per month + money she gets from 2 boarders.
Now the fun part…she has bid and won an auction. Her winning bid was $21,000 for a house that sold for 86K in 1998! She has $10,000 to put down but cannot find anyone to loan her the other $11K…too small for most and her debt ratio does not work out.
She has 45 days from 11/22/1999 to close. She is checking with the realty company to see if the contract is assignable. I also proposed a sale where she held the paper and she liked that because it means an increase in her monthly income.
Here’s one of those deals where I wish I had some cash! There must be a way I can make some money by helping this lady. Any ideas? I have an appointment for Wednesday.
Thanks,
Leo
Re: Look before you leap… - Posted by NJDave
Posted by NJDave on December 07, 1999 at 07:21:24:
Have you had an appraisal, or at least reviewed available market data? Simply because the house sold for $86,000 in 1998 does not mean that it was worth that amount then, nor does it suggest that it is worth that amount now.
Check it out. Make sure that the $86K sale price was an arm’s length transaction and/or not some scam intended to defraud a mortgage lender…
Two years ago, in Monmouth County, New Jersey more than 300 homes were bought and flipped (using straw buyers) that resulted in outrageously overinflated sales prices, and a mortgage loan company (ever hear of Walsh Securities) defrauded of $23,000,000. Four licensed appraisors are now out of business or in jail, attornies indicted, and Walsh (missing out on a $250,000,000 merger) is now out of the mortgage lending business.
If a property was worth $86,000, and sold at public auction for only for $21,000, where were all the Investors, and why didn’t they bid? There has got to be a reason.
If you find out, please let us know.
More Details on Wednesday… - Posted by LJQ
Posted by LJQ on December 07, 1999 at 07:15:43:
Hello All:
Thanks for the input. I’m smart enough to know that this deal doesn’t sound normal but I’ll get all the details on Wednesday and I’ll report back.
Thanks again,
Leo
Re: An 86K House For $21K! Now What??I’ll Buy it!!! - Posted by Tony B
Posted by Tony B on December 07, 1999 at 02:02:27:
Hey:
Forget all questions or i dont believe its. If its what you said email me. with the property address and location of the property. I’ll partner up with you or pay you a referral fee on the deal.
Those deals happen, you dont have to convince me. Contact me. I am already interested.
Tony B
Re: An 86K House For $21K! Now What?? - Posted by Michael
Posted by Michael on December 06, 1999 at 23:36:59:
Could you clarify–“she is checking with the realty company”. Does this mean perhaps the auctioneer,
who in some states has to have a RE lic to auction
RE. Or is she just checking with SOME realty company.
If she got it at auction, then wouldn’t the RE
company be out of the picture?
Please clarify this. I don’t see what is not assignable about this. I’m just asking.
Maybe a few more details would help.
I didn’t follow the chain of events here.
Re: An 86K House For $21K! Now What?? - Posted by Irwin
Posted by Irwin on December 06, 1999 at 23:00:40:
I wouldn’t take anybody’s word for it on something like this. Take a look at the paper work yourself, and talk the to the real estate company. I’ll bet you find there are a few facts that weren’t disclosed. What you described just doesn’t happen in the real world.