Posted by Stacy (AZ) on February 16, 2000 at 20:48:45:
…why couldn’t it have been a convicted child molester. Getting in for $67K? Well that just blows the whole deal.
(just kidding…nice deal still)
Stacy
Docs needed to buy a 2nd? Kaiser? Behl? - Posted by steph in tex
Posted by steph in tex on February 16, 2000 at 07:22:41:
here’s the scoop:
lady in F/C - sale in three weeks. lots of equity.
2nd didn’t protect their int, didn’t foreclose.
I can buy the 2nd for .50 on the dollar.
for my fellow newbies:
i plan on buying this house outright using hard money-
but when i do that the 2nd shows up and i have to pay the whole thing off-- so–
i buy out the guy that holds the 2nd-
then then i can either reinstate, or when i buy it i;ll get credit for the whole thing at closing.
my question for the pros:
what docs do i need to buy this 2nd?
simple assignment?
this is my first one of these!!
YEA! i love this stuff
steph in tex
ok ok, so i’m a little slow, but what is it with this capital i thing? nt - Posted by Caery_PA
Posted by Caery_PA on February 16, 2000 at 15:45:59:
.
Re: Docs needed to buy a 2nd? Kaiser? Behl? - Posted by David Alexander
Posted by David Alexander on February 16, 2000 at 10:46:25:
Steph, with a Capital S,
Post the numbers, it’ll help.
Here’s my two cents.
How much is it to Reinstate the first? What are the payments on the house, what’s owed, on the first and second, what’s the value, how much work is needed?
You say you can buy the second the 2nd for .50 cents on the dollar. That second is worthless and should be assigned to you for 100 bucks or so, because if the second didnt initiate foreclosure and the first is going to the sale in three weeks it would be wiped out anyway.
Have you tried to just get the deed from the people in the house. It might be cheaper to get the deed, reinstate and pay the people to move than pay 5k for the second, you could propbably give the people 500-1500 moving money, there gonna lose the house anyway.
David Alexander
Re: Docs needed to buy a 2nd? Kaiser? Behl? - Posted by TCK
Posted by TCK on February 16, 2000 at 09:27:47:
Steph
Before you get carried a way, I’d check the LTV of the second.
If the previous seller created the second to sell the property, you may just be buying air.
This thing may have no equity.
Docs needed to buy a 2nd? - Posted by Bud Branstetter
Posted by Bud Branstetter on February 16, 2000 at 09:00:33:
Steph,
Typically you would want estoppels on the first and second. Once you have a contract for the first then get the contract to buy the second. Title insurance with the hard money loan will identify any problems there.
Didn’t TRandle already talk to you about capitalizing “i”? - Posted by Chris
Posted by Chris on February 16, 2000 at 07:33:08:
Shame on you;-]
thanks David-with a capital D! -heres more - Posted by steph in tex
Posted by steph in tex on February 16, 2000 at 11:13:56:
the numbers are too good for me to chance this thing going to bid, and i know she’ll be hit in the next couple of days by the comp, so my offer my offer needed to look good- better than a subj to deal-
here’s the scoop:
prin bal: 47K
2nd: 10K
the cure $ is 7K-
needs paint and carpet- 2K max
FMV 105K
my offer:
67K with 2K back for paint carpet cont. on neg with 2nd.
plan
use hard money if needed- (back up for simt close)
buy the 2nd at a discount / get full credit at close
i already have a buyer lined up @ 90K as is
try to get an extension due to contract, and then close simul with new buyer
if we don’t get the extension, or the buyer flakes- we have the hard money in place and ready to go.
thanks for any input, or anything I’m missing
steph in tex
homework is done - Posted by steph in tex
Posted by steph in tex on February 16, 2000 at 09:43:36:
the second is only for 10K
I already have a lien search
plenty of equity
thanks for all the response you guys
I’ll keep you posted
steph in tex
OOPS!! too early in the am! sorry! / hey! what’s the answer?(nt) - Posted by steph in tex
Posted by steph in tex on February 16, 2000 at 07:42:41:
nt
Re: thanks David-with a capital D! -heres more - Posted by David Alexander
Posted by David Alexander on February 16, 2000 at 16:23:10:
How about this, cure the first buy the second, foreclose on the second and then your into the property for 20k less.
Is the first lien holder and instituion or private party? Could you trade them good paper for there bad paper, or buy the paper at a discount and have it assigned to you? In that case you wouldnt even have to buy the second, just finish the foreclosure.
If I understand right your going to be into the deal for:
67k, 5k (10k second @ 50%), 7k Reinstate, and 2k to fix
81k all cash on a 105k property, Where’s the deal?
David Alexander
Re: homework is done - Posted by TCK
Posted by TCK on February 16, 2000 at 10:11:47:
Steph,
It doesn’t make any cense. The second is only for $10,000 and you state that there
is a lot of equity, and yet the second holder doesn’t cure the first and take all this
equity that you say is in this deal?
Their just going to walk away from all this equity and lose their $10,000 ?
I smell something.
Re: OOPS!! too early in the am! sorry! / hey! what’s the answer?(nt) - Posted by Chris
Posted by Chris on February 16, 2000 at 08:14:56:
You’re a good sport steph!
I’m still learning the foreclosure biz myself. This looks like what you want.
http://www.legalwiz.com/notepurch.pdf
-Good Luck,Chris
Re: My take - Posted by Stacy (AZ)
Posted by Stacy (AZ) on February 16, 2000 at 16:46:45:
Maybe I’m missing something…this seems too easy. And when that happens, I’m usually forgetting something. I’ve never done one of these, but I am planning to look for private seconds exactly for this purpose. Here’s the way I see it:
47K owed on 1st mortgage, cure = 7K
10K owed on second
- Buy the 10K second for 2K (via assignment)
- Cure the 1st for 7K, stopping foreclosure
- Take the deed in a land-trust (subject to)
- Offer seller 4K at close (6K minus 2K repair reimbursement) or a little more if needed.
Do the 2K repair, sell for $100K a little below retail.
You’re in it for 2K(note) + 2K(repair) + 7K(cure) + 4K(seller) + closing costs = $16K
You owe $47K balance on 1st, total 16K + 47K = 63K
100K sale - 63K = 37K profit, minus holding, selling expenses.
Uh, yeah, I’d look into this. Am I missing something obvious? (wouldn’t surprise me…havin a foggy day).
Stacy
here’s more - Posted by steph in tex
Posted by steph in tex on February 16, 2000 at 10:48:20:
the holder of the 2nd is a private individual-
they don’t have the 7K to cure, and they didn’t protect their intr by foreclosing before the 1st.
the sale is scheduled for 3wks from now. the holder of the second will be wiped out (unless it went to bid, and the bidding is high-which it would be-but i’m getting there first)
since the holder of the second doesn’t have the means to cure, they risk losing it all if it gets foreclosed on by the first.
better to take .50 on the dollar than to risk be left with nothing—in many peoples opinion.
hope that helps
steph in tex
Re: My take - Posted by David Alexander
Posted by David Alexander on February 16, 2000 at 16:53:52:
she said she’s buying the second for 5k(2k in my opinion is too), way too much considering the circumstances, she also alluded to giveing the homeowner 67k (20k plus the 47k balance) for the house, also too much considering, since you still have 7k to reinstate, and 2k to repair.
There’s no need to give anything to the seller if you buy the second and reinstate, becasue they are going to get foreclosed on anyway, you just need to be able somehow to reinstate and continue that foreclosure process.
David Alexander
Less than… - Posted by David Alexander
Posted by David Alexander on February 16, 2000 at 16:24:33:
.50 cents, that’s if there performing.
David Alexander
Re: Hey, sTEPH… - Posted by Stacy (AZ)
Posted by Stacy (AZ) on February 16, 2000 at 17:01:45:
What are you up to, girl? My mouth is watering on this one…you got some ‘splainin’ to do.
By the way, David, I agree with giving the seller what ever it takes (within reason) to get them to go for a deal like this. I’m closing tomorrow on a deal where I’m reinstating a loan, but the only way I could get the sellers interested is to give them $3K. They really didn’t care too much about their credit being saved, but they needed some bucks. Still turns out to be a great deal for me. But, not as good as this one looks! Let’s hear what sTEPH is planning.
Stacy
I’m a softy— - Posted by steph in tex
Posted by steph in tex on February 16, 2000 at 18:22:18:
I feel like I need to leave some money on the table gang- this lady is in a bind, and if i can-oops, I mean “I” can save her credit, give her some cash and still walk with this kind of cash- that’s a good deal to me. These foreclosures still pull at my heart strings sometimes-- so shoot me. As long as everybody gets a good deal, it works for me.
heres the scoop again:
payoff 47K
2nd 10K
seller 10K
67K-- with a FMV of 105
she gives me 2k back for repairs, so I’m in for 65K
if I get the 2nd at a discount- then that’s gravy
I already have a buyer for this one, and he’s pre approved and ready to go. i sell to him for 90K as-is
everybody’s happy.
i believe in sharin’ the wealth! oops! i mean “I”!
I LOVE THIS STUFF!!
ps/
i want to use hard money, because nothing comes out of pocket- i won’t have much holding time- if any-
is that sweet or what?
SMOKING!! No time for us… - Posted by TRandle
Posted by TRandle on February 16, 2000 at 17:44:51:
I think she’s busy printing out contracts since she seems to be signing them faster than she can print them. They posted March foreclosures yesterday so I imagine she’s out doing her thing. I’m curious as well about the details of this one…