can the owner sell this house? FC advice request. - Posted by RaymondCA
Posted by RaymondCA on July 13, 2003 at 13:06:29:
I have a lead on a possible deal that I could use some expert advice on. I just found out about this yesterday and am still a little shy on details. But my questions are more related to the foreclosure process.
A friend of my mom’s, an eldery gentleman, is in a real ‘pickle’ with his house. He hasn’t made a payment since May of 2002. I checked county records online and a notice of default was filed on 6/25/2002.
I had lunch with my mom and this getleman and he was so embarrased by the entire situation he didn’t even want to talk about it, he actually started to cry. What he did say though is that he had been in court at the begining of last week and told them he is walking away from the house leaving all the junk in it for them to clean out. According to him, the bank said, “whatever, we just want you out”. He was given 30 days to vacate the property.
I have driven by the house and… what a mess!! He won’t let me or my mom inside ‘because the house is such a mess’. I am meeting with him later today and think I might have convinced him to let me in… I am going to help him move his bed to his new senior apartment.
3 bedroom (apparently one room is an add on that was never permitted)
2 bath (apparently there is some water damage, don’t know how severe)
I have to verify these figures, but so far this is what I have:
principal owed on the house $65,000 (does not include any arrears)
conservative FMV $113,000 (after rehab. house next door sold for $134k in feb 2003)
fix up costs $25,000 (this is a guess, and itentially high…)
My questions are as follows, I have no experience in working with foreclosures and am feeling a little ‘wobbly’:
Can I deal with the owner (the elderly gentleman) at this point? Does he still have any control over what he does with this property? Or do I need to be working with the bank? There is no BK involved.
If I should work with the bank… How eager are these banks loss departments to work with investors? Can anyone reccomend a strategie? Cure the loan and work from there? Get my own financing? The bank has had this one on their books for over a year, do they want to cure the loan or just get rid of it?
Normally what I would do is make an offer, fund the purchase and rehab with my own financing. That whole process normally takes several months though… loans are backed up becuase of all the refies going on and I don’t know how much time I have to close this deal.
any other suggestions, recomendations, thoughts or ideas you may have.