Posted by Stewart on September 13, 2004 at 23:54:53:
My guess? First mortgage holder bid what they were owed. Other mortgages and liens wiped out, thus no other liens.
Found house at garage sale - pls help - Posted by Scott (CO)
Posted by Scott (CO) on September 13, 2004 at 11:57:43:
Went to a garage sale on Saturday and, after talking to the owners, discovered they are selling everything and walking away from their house in one week. Very limited time but it could cost nothing to acquire the deed.
Here’s the details. House has been sold at auction to lender already. However, total amount due was $284K and lender bid $200K leaving a deficiency of $84K. No other liens or loans against house. Why would the lender do this?
Owner has an appraisal from last year for $270K. However, I cannot find any current comps for any more than $235K. They had listed it in the MLS for $240K earlier this summer but it was listed through a mortgage broker for a flat fee and had no marketing to help sell it. Property needs a little touch up to make saleable - under $1K. Something may be fishy with that appraisal because this is an appreciating area. Nice family neighborhood with 30 year old homes.
Per the couple’s lawyers, the cure amount is $204K and the redemption date is next Monday. Couple is willing to walk away next Monday with nothing. I know several other investors spoke with them recently but they indicated that they would be willing do whatever they could to help if I could buy the house. (Husband ran to the grocery store to make me a copy of the appraisal while I talked with his wife.) Both husband and wife do not have a job but husband is looking and may have a couple of offers this week. (Sure he will.) Wife indicated that they could potentially declare bankruptcy if he got a job to prevent any garnishment of the new job’s wages. I realize that could throw a wrench into things if he really does get a job. But since he has been unemployed for over 2 years…
I believe I could get them to do almost anything to help me at this point.
To summarize:
ARV $235K
Repairs ($1K)
Amt to cure ($204K)
Potential $30K
How should I best structure this offer to allow me to market the property in the next week? My first choice would be to get a cash buyer before next Monday and flip the deal for a few thousand dollars. Plan B would be to find someone to qualify for a 3 or 5 year interest only loan and lease/option the house for a bigger payoff down the road.
Any comments or advice are welcome. I realize that time is short but - nothing ventured, nothing gained.
Thanks in advance,
Scott
Re: Found house at garage sale - pls help - Posted by todd
Posted by todd on September 15, 2004 at 23:18:12:
you said total amount do was 284k… was this what was owed to just the forclosing lender, or all liens and mortgages?
todd
Re: Your numbers seem a little off! - Posted by trapper
Posted by trapper on September 13, 2004 at 16:49:11:
If they owed 284k how can the amount to cure be only 204k?
Even at 204k what about other cost that need to be added?
Holding costs, taxes, insurance, utilities, closing costs?
A house must be mint to only need $1,000.00 in repairs.
Just my two cents, cause that’s all I got!