Foreclosure Experts, Need Help!! Follow Up - Posted by Ken

Posted by TKP, Houston on August 08, 2003 at 24:49:03:

Ken, let us know location of property. If it is in my area i would like to take a look at it. 2.nd lienholder ought to be motivated to take a discount unless he plans on taking out the 1st lien and take over the property. With sec.8 paying $1360 this looks like a “money machine” even if you bought out both the 1st and the 2nd and gave the owner 5K. TKP, Houston

Foreclosure Experts, Need Help!! Follow Up - Posted by Ken

Posted by Ken on August 07, 2003 at 19:27:59:

Hi Folks,

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.