Posted by JT-IN on October 21, 2003 at 08:48:01:
With the limited info provided it is difficult to render an opinion, as well as not wise for you to rely on such a shallow opinion, if given.
Here is the big question, in my opinion. You state: “He owes $115,000, the sale is in 3 weeks”.
Does the 115K include the arrearage…? Usually when folks post about a foreclosure, and the amount owed, for some reason they rearely include the arrearage, which certainly adds to the total investment… e.g. 115K with 5K arrearage and 15K to homeowner for walking money is not 130K, but 135K… If the arrearage is 10K, then the price is 140K… You certainly see this issue here. Maybe you have included the arrearage in your numbers, but it seems that most do not… for some strange reason.
Additionally, we do not know the market where you are located… is it a buyers, sellers or neutral market…? How is the T/B market…? Could you actually rent thsi for positive c/f…?
All in all, if the out of pocket amount was slightly less, and the market is good to better than average, then I would say move foreward on this… but the out of pocket costs are too great here to make it feasible. What that means is when the seller gets more in tune with the mkt, then you can make a deal… maybe.
Just the way that I view things…