Foreclosure /Lease back. Exit Strategies? - Posted by Gary (WA)
Posted by Gary (WA) on July 11, 2003 at 12:57:19:
I have gotten a lead from a mortgage broker and the details look like this.
Recent appraisal (1 month ago) of 212,000. Comps support this figure as well.
Loan Balance of 142,600
Back Taxes of 5,600
6 late payments of 1,437 each P&I
So a total pay off including late fees and others = 160,000
The owners have been given a “notice of default” and not yet been give a “notice of trustee sale.” The loan is currently in the loss mitigation department. And the loan is currently with Ocwen.
The owners have lived in the house for 12 years, and do not want to move. Yes I do realize that in 3 more months they will have to, and so do they.
They are interested in leasing the house with the option to repurchase in 18 months.
Lease payments of 1450. Still debabting the repurchase price. Perhaps split the equity and have option at 185,000.
I do realize that if I were to refi this thing I could get it to cashflow and have a nice back end profit or perhaps receive that up front at closing.
My thing is that I personally don’t want to refinance the house and have it all blow up in my face. Have it get looked at as Usury. That and all the other perhaps bad things that can happen.
I do realize people have the best of intentions, and have difficulties along the way, are not all dead beats, but then again what’s to say I’m not just giving them their problem back.
Additional info. All utility bills are paid, and there are no other liens on the property.
I have private financing available at 12% and 2 points.
Questions, Comments, Concerns.
Looking for other exits.