First one.. Need help.. She wants Out.. - Posted by chris sullivan

Posted by MoniqueUSA on September 16, 2003 at 09:07:47:


Not enough info here. Here’s some due diligence you need to do:

  • Find out the current payoff balance (The original loan amount doesn’t tell you enough. Particularly when payments are behind)

  • Find out how much it will cost to reinstate the loan

  • Find out what kind of liens are on the house. If they are gov’t liens (e.g., Federal Tax liens, county property tax liens), plan on paying them off in full. If they are liens by companies (e.g., contractors, finance companies), you may be able to pay them off for less than the full payoff amounts.

  • $5K to start over, huh? Not unless there is a TON of equity.

  • Estimate the cost of repairs needed

  • Determine the value of the house once repairs are complete. Is there a substantial profit spread over and above what you’d have in it?

  • Determine what you could rent the house for (as an additional exit strategy to selling it). Will it cash flow?

You need to know these things to decide if you want to pursue this deal.


First one… Need help… She wants Out… - Posted by chris sullivan

Posted by chris sullivan on September 16, 2003 at 08:38:54:

Hello everyone… I’m new to the game of real estate and need some help on my first one… Here’s the plan…
I know this lady that is wanting out of her house completely. she is several months behind on her house payments @(325.00), and her spouse is in jail. The original loan amt is 72,000.00, on the home and she has at least 10,000.00 worth of liens against the home. She is willing to deed the mortgage over and have us (partners) take over the payments. ??? Does her husband have to sign this quit -claim deed? She’s also wanting 5000.oo to start over… What avenues should I take… please help…

Re: First one… Need help… She wants Out… - Posted by phil fernandez

Posted by phil fernandez on September 16, 2003 at 10:20:13:

Good information from Monique who does these sorts of deals.

If after your due diligence you see a deal here, and if you have to give the seller some walking money I’d make them wait for a large chunk of that money until you have sold the house. After all it is you who is solving the seller’s problem. If the property goes to forecloser, they probably will get nothing.

Or to expand further on this idea. Why not tie any future payment to the sellers to your eventual profit.