You could also try finding a buyer just willing to take over the existing payments. Write up a contract for deed between you and the seller making that subject to you first being able to find a suitable tenant to place into the property. Then run an ad something like:
NO QUALIFYING!
$5k And Take Over Payments!
Nice House in Nice Area
Call xxx-xxxx
Then just take the $5k from your buyer and let them take over your contract which would be structured for the same payments on the seller’s existing loans. Just make sure to set up a 3rd party escrow to insure their payments are made directly to the bank. Otherwise if they paid the seller directly the payments may never get made, especially since he has shown how irresponsible he is by taking the money from the equity loan to live off of instead of doing the repairs that were needed!
whats the basis for a seller to actually deed over a property to me where if i were a seller i would certainly not deed over a property until it was paid for.
There are huge numbers of people moving around these days, and many have little to no equity. AND, many are taking advantage of those TV home equity loans, and then they spend their equity on what ever it was that they thought they needed. I was just looking at a decent house in a very nice area, really booming with new businesses and homes, where a guy just went through divorce and was moving from Michigan to California. He had a second equity loan to remodel his house (but he used it to live on after his divorce) and was ready and willing to give me his house so he could move. He also had absolutely zero equity. He had started some work on it, and he was a very good wood worker/carpenter. Had he completed it it would have been imaculately done. He was very clean cut and very detail oriented. I was actually caught off guard that he would seriously consider giving me the deed. Usually you expect someone who let their situation get away from them. The problem was that he now owed about $10,000 to $15,000 more than the property was worth. I was going to take over his payments, take over his property and market the house as a “handy-man special”. Lease Option it to someone, realizing I wouldn’t get much down up front, as I’m expecting them to put several thousand, if not many thousands of dollars into fixing it up. Down the road in a year or two when this individual is done, get it revalued at the new ARV (after repaired value) and have them get a new loan and cash me out. I then in turn cash out the guy I bought it from.
A real deal (that I did walk away from, too far in the hole to risk it for me) and a situation that really does happen. I failed to mention that AT&T was willing to pay $4,000 to put a tiny little phone switching station on the very corner of the lot. That would have been my upfront money… maybe I should call this guy back!
Re: dirty deeds done dirt cheap - Posted by Jim Stewart
Posted by Jim Stewart on February 24, 2002 at 20:56:24:
Divorce, death (estate), relocation pre-foreclosure. Desperate times call for desperate measures and although they don’t come along every day they are out there. Enjoy the “Thrill of the Hunt”
