Ed Garcia! Question! - Posted by Phil Pelletier
Posted by Phil Pelletier on September 24, 2003 at 02:52:26:
I am trying to help a friend out who is gacing foreclosure. He is willing to Quit Claim Deed me his house after I purchase the first mortgage on his home at a discount. He now owes $61,000 on a conservatively valued $80,000 home. He also has a $10,000 second mortgage that he will be paying off at a 75% discount tomorrow. Except for the first mortgage, the home has no other liens. The investor who now has the first mortgage will sell me the note for between $21,000 (my first offer) and $50,000, their verbal “pie in the sky, you’ll never pay this, will you?” counter offer. I figure they will settle for around $35,000. My friend will have $9500 in cash after he pays off his second mortgage tomorrow. He will send it to me as a lease option payment.
My question for you is this: If my friend Quit Claim Deed’s me his home, can I buy the note from the first position investor using conventional financing? Or do I need Hard Money, then refinance into conventional?
My friend will pay me $550/month rent while he reestablishes his credit and applies for a loan to buy the home back from me at $45,000.
I figure there is about $20,000 to be made here, plus about $200/month in positive cashflow. Can I use conventional financing to secure the note if the home is deeded to me?
Any Loan Brokers in Pittsburgh that can chime in here, feel free to contact me at the above number. Foreclosure sale is October 6th. Gotta MOVE!