I hope your plan works. But where is the win for the mortgage holder. You want to discount him severly so you can profit. Why wouldn’t he foreclose and take over the property. In many deeds of trust there is an assignment of rents provision that would allow the mortgage holder to have rents assigned to him to pay the mortgage. If the mortgage holder is an institution they are unlikely to discount. What is more likely is to get a deed or lease then lease to the tenant/buyer.
If the buyer is prequalified for 75% LTV does that mean he can only afford 75% of the payment.
The situation is:
There is a property owner that wants to get out of the property; she has a mortgage balance of $62,000 dollars, the market value is approx. $68,000 dollars. The property is currently lease expires at the end of December, the owner will not be able to make future payments, there were problems prior to renting, the owner got behind in the mortgage payment.
I have a pre-qualified buyer at 75% LTV
PLAN TO MAKE THIS WIN,WIN:
I will approach the note holder, to purchase the note at a discount.
Have the current owner execute a quit claim deed on the property.
Sell the property to the pre-qualified buyer at fair market, taking back a 2nd mortgage for the remaining 25% of the appraised value or sales price.
Set simultaneous closings
ANY COMMENTS OR ADVISE TO HELP THIS DEAL WORK WOULD BE APPRECIATED!!!