Condo in early Pre-Foreclosure stage? - Posted by PJ

Real Estate Investing
1

Posted by John on September 17, 2004 at 08:29:05:

She needs to get real.

Her credit is getting damaged.

Your offer:

  1. the mortgage amount (sub2) or the 600 a month as a L/O. The sub2
    is better in many ways
  2. She gets the benefit of you fixing her credit by making the
    payments. Even on the L/O I would have the payments handled
    through a third party so that she does not just blow the money. She
    obviously does not believe she needs to be prompt with the payments
  3. After about 2 years you will refinance or similar so that she is off the
    loan and title (completely off).

This is a business and you are providing a service for a fee. The service
is saving her bacon and the fee is your gain later. She lost her chance
for much more when she stopped making the payments.

That would be my offer.

BTW - You want the Sub2 in that it controls the title a bit more. If she
fails to pay someone else and tried to lien her assets the condo will not
get hit. If you have a L/O with her your position is not quite as strong.
Get the option recorded if you go that route so you predate later
action.

John

2

Condo in early Pre-Foreclosure stage? - Posted by PJ

Posted by PJ on September 16, 2004 at 17:00:44:

I have a seller who owns a 30 yr old condo in a decent area near me.

The seller has moved out of the Condo to a new home and has stopped making payments when she left 2 months ago.

ARV: 120k
Mortgage: 85k
Payment: $600/ month (I can get a min. $900/mo rent from tenant)

She is 3 months behind on payment on this Condo.

She wants 10k cash & I told her this would be unlikely!

How should I structure this offer? Help!

3

Re: Condo in early Pre-Foreclosure stage? - Posted by cliff

Posted by cliff on September 16, 2004 at 18:59:10:

Sounds to me like she’s willing to sell for $95K. Is that price acceptable to you?

Ask her if that’s the best she can do.

Before you assume a mortgage consider the current terms and what you can get. What’s your exit strategy?

4

Re: Condo in early Pre-Foreclosure stage? - Posted by PJ

Posted by PJ on September 16, 2004 at 23:36:54:

Cliff - yeah, she wants to sell for around 95k, however, I think I can convince her to sell it for what she owes.

Of course, I will NOT be assuming the mortgage, I will take it over SUB2 or offer to Lease Purchase the property for $600/mo. with nothing down

She is 3 months behind on payments and claims her Lender is OK with it since they know she is trying to sell - I think thats BS