Posted by Tony on February 12, 2002 at 20:09:58:
This is an idea. I have never done it and I don’t know if it will work. Have the seller deed you the property “subject to”. You get a 2nd mortage on the house to catch up the 1st and repair money. or find the money from some one else. You may need to catch up the 1st before you can get a 2nd. Or try to flip the deal to an investor who has the resources to pull it off. Let me know what you end up doing.
Big arrears: Can this deal work? - Posted by Steve T.
Posted by Steve T. on February 12, 2002 at 17:45:37:
There’s a lot of potential equity in this deal, but I need some suggestions on whether to pursue and how.
Seller owes $55,000 with a $525 PI only payment. (Taxes and insurance appx. $2500/year).
Seller is grossly behind and needs $7,000 to bring current. They have filed bankruptcy to stall a foreclosure.
Repaired value of house is $90,000.
House needs paint, carpet and, here’s the kicker, it has an unfinished pool that is about half done.
Thinking in terms of using a hard money lender at 65% LTV, that will cover the loan but not the arrearages nor repairs. Is this one worth doing, and how?
Thanks.
Re: Big arrears: Can this deal work? - Posted by Jonathan RexfordFL
Posted by Jonathan RexfordFL on February 13, 2002 at 08:03:17:
Steve,
Check to see if the house in the BK. I am sure it is. Next see how much repairs that are needed to make it worth your while. You can do 65%-repairs. That will give you a ball park on what you should offer. GO to the lender and Talk to them about doing a Short pay (sale on the Mortgage). That will give you the discount. Now the BIG question is to convince the BK trustee to do this. Good luck. But I would start talking to the lender on a shortsale.
Re: Big arrears: Can this deal work? - Posted by Jon R
Posted by Jon R on February 12, 2002 at 22:43:35:
You might want to make sure that the house isn’t a part of the Bankruptcy before proceeding. If it is then you will have to have the BK trustee approve the sell which will cost you alot of time. I wouldn’t do the deal if the house was already included in the bankruptcy. But that is just my opinion.