Posted by Tim (CT) on July 11, 2003 at 15:45:00:
Sounds like they also have a hard time making the monthly mortgage payments. You say they’re 6 months behind. If they are having a hard time making up only the back taxes then why did they let the mortgage payments go?
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.
Thanks,
Gary
Re: Foreclosure /Lease back. Exit Strategies? - Posted by B.L.Renfrow
Posted by B.L.Renfrow on July 11, 2003 at 13:46:12:
How is it you think they will be able to make payments to you of $1450 when they have been unable to make payments to the lender of $1437 for the past six months?
To me, there’d have to be a VERY good explanation why they couldn’t make the lower payments and now can make the higher payments, and I still think the risk is excessive. I know some people do these things, but I think there’s a much higher than average risk of it blowing up in your face, especially if they do get back on their feet and then decide you “stole” their house or whatever.
What are the sellers needing out of it? If they aren’t looking for a lot, use your private money to pay off the existing financing, then retail it. Should be plenty of room there.
If the sellers are making unreasonable demands, tell them to call you back when they change their minds, i.e. as the sale is looming.
Brian (NY)
Re: Foreclosure /Lease back. Exit Strategies? - Posted by Gary (WA)
Posted by Gary (WA) on July 11, 2003 at 15:22:23:
The 1437 does seem to be a problem their explanation is not paying for refinancing purposes. It’s the Taxes that they have a hard time getting paid. Anyway, I’m thinking they will have their problem back and looking for other exits.
Thanks
Re: Foreclosure /Lease back. Exit Strategies? - Posted by Tom-FL
Posted by Tom-FL on July 11, 2003 at 20:03:17:
>> The 1437 does seem to be a problem their explanation is not paying for refinancing purposes.
Now I’ve heard everything. That’s a riot. Missing 6 mortgage payments makes them a better candidate for a refinance. Are they also trying to get more credit cards by not paying the ones they already have?