Foreclosure Experts, Need Help!! Follow Up - Posted by Ken
Posted by Ken on August 07, 2003 at 19:27:59:
I am reposting this with some follow up info to see if there are any more suggestions. Help seriously needed.
I have a possible deal that I’m looking at. Here are the numbers and situation.
Seller is motivated to sell because he has a balloon payment of $55K due in a week and has no cash. The holder has started foreclosure process and the auction is in a weeks time. This is from the first mortgage.
There is a second mortgage which is payable as a balloon in the amount of $28K Apparently there are no monthly payments on this only a balloon due if property is sold. I estimate property value to be $120K from MLS comps which should produce a quick sale if needed.
The seller is willing to settle for what is owed in total if he has to, ie. ($55K + $28K)$83K but would obviously prefer if there was about $5K in there for his equity. There is a tenant (Sect. 8) who is paying $1360/mo.
I have a dilemma here because I prefer to and I’m financially limited to Lease Options, Subject To and Wholesale deals.
I am wondering if there is anything creative I can do to delay foreclosure and perhaps get a new mortgage to pay off 1st and 2nd plus some for sellers equity?
Would anybody advise packaging the deal and trying to wholesale to an investor looking for buy-and-hold properties or just retail it?
Comments and suggestions greatly appreciated.