Posted by Lloyd Cook, Los Angeles on January 30, 2002 at 09:44:17:
If the home is worth 140k now and needs 70k in work, the most anyone could be expected to pay is around 40k or less. Do you have 70k cash to put into this project to sell for 10k or 20k profit? I would pass.
Can I do something with this?? - Posted by Chris
Posted by Chris on January 29, 2002 at 22:28:50:
Hello All… Here’s the deal. There’s a house down the street that I noticed had a condemned notice on the Garage. Always looking for opportunities, I started researching the owners, lenders, etc.
I found out that:
It sold in '99 for 144,000 (too much at the time I think)
Owner refi’d a couple times, then got into some trouble, and a suspicious fire started out.
I also talked to the neighbor, who seemed to know a little, apparently the guy who lived in it had strategically “left” propane bottles at 4 corners of the home. Since it was suspicious, the insurance company didn’t pay off, and the lender foreclosed. Then he said that they began some work on it, and stopped when they realized it was going to cost so much. He had talked to the contractor over there, and there is structural damage. Estimated cost to fix according to the contractor he talked to was about 70K. That was prohibitive I guess so they quit, and now it’s going to auction.
Other background.
Comps for similar sized in the neighborhood = 140-150K
Original Principal balance : 119K
Since it’s is now being offered for auction in a couple weeks, and I I’ve been researching it for a couple weeks now, I was wondering if there was any way to tie the house up before the auction, during the auction, and after. And also how far upside down would the lender be able to go. Even if I’m not able to actually do this myself, I have talked to my mortgage broker, and she gave me the name of one of her co-workers that works creative stuff alot apparently. Is there a way I could work a finder’s fee??
I know I am probably asking ignorant questions, but my only knowledge thus far is from books (ie the theoreticals). I thank everyone in adavce for your knowledge, as I have found this place an absolute mountain of useful info, that I am able to use soon I hope…
v/r
Chris