Posted by Amise (FL) on February 14, 2002 at 15:41:10:
Hi Richard,
It’s a conventional loan. Just wanted to update you that I was able to renegotiate with the lender to take only 2 back pmts and work out a plan (giving me time to rehab and sell). Foreclosure has been averted!! Thanks for responding to my post.
HELP!! 2 days until forecloser begins. - Posted by Amise (FL)
Posted by Amise (FL) on February 11, 2002 at 19:09:11:
Hi all,
Sorry this is long.
I’m a newbie who bought a property “subject to” a few weeks ago. Here are the numbers. FMV 150-160K, existing mtg-98K, monthly pmt-$1288.76. Last pmt made in Sept 2001. House is 4/2 (with uncompleted 3rd full bath)and pool. I contacted lender initially and was told property will go to foreclosure dept Feb 13 unless at least 2 pmts-$2577.52 is received by then. Lender also stated they would at that point work out a payment plan to reduce monthly pmts until property could be sold. I found a financial partner (family mbr) who agreed to put in the cash to pay the 2 back pmts and the cost of repairs.My plan was to rehab and then sell. The property definitely needs a new roof, outside and inside painting, kitchen needs to be updated (new countertop, cabinets refinished) and all bathrooms need to be completely updated (tubs, sinks/vanity, flooring). The pool and patio needs to be cleaned and screened enclosure needs to be completely replaced. My financial partner has at the last minute demanded the majority of the profit and the lender states they cannot work out a financial plan and would need the full pmt of $5155 to stop the property from going into foreclosure. Since I am just starting out I don’t have the funds to pay the arrears. What do you seasoned investors recommend I do with this property??? Also, I have to pay the seller $1500 by 2/18 when they move out. I’ve thought about flipping this property but once it’s in foreclosure there would not be any profit even for a flip. Any advice would be appreciated. Thanks!
Amise
Take a free ride… - Posted by Glen SoCal
Posted by Glen SoCal on February 11, 2002 at 21:33:00:
Amise–
I’m not a sage investor, and neither are you, right?
And the deal does look a little skinny, as skinny as your wallet, yes?
Look at it this way. After about 20k plus in rehab, $5,500 in arrears, holding costs -another 6k, then 15k in selling costs, (these are all rough) on top of purchase price and $1,500 to the seller when they vacate, there will be $14k in profit. Now let’s say your investor wants 65%.
That leaves you with $4,900 for a zero $$$ investment, or about $3,500 after taxes and an EXCELLENT education. Not bad.
This scenario plays out if the rehab doesn’t go above 20k and holding costs are correct and you use an agent to sell. ,and the property sells at the high end, 160k.
If it sells at 150k, then you guys split 65/35 on a whopping $4,000. That’s $1,000 to you after taxes.
Still a good deal for no $$ risk to you, and still an excellent education.
Re: HELP!! 2 days until forecloser begins. - Posted by Richard-(FL)
Posted by Richard-(FL) on February 11, 2002 at 20:36:51:
Amise,
What kind of a loan is on the property…government, conventional, private?
Richard-(FL)
Re: HELP!! 2 days until forecloser begins. - Posted by Jonathan Rexford
Posted by Jonathan Rexford on February 11, 2002 at 20:19:35:
Looking at the deal, How much are the repairs? As you stated it needs to be updated. If 98K is owed and 5155 to bring current that puts you at 103,155. Home has a 160K… Is that now? or ARV…AFTER REPAIRED VALUE. If its the ARV…I think that I would pass with the repairs that is needed. A completed full bath will run 2500 depending on how you finish, kitchen for a 160K home can spend 5500-7500 with flooring…
Now If my assumptions are wrong and the FMV now is 160K you have a good deal. Where do you get the funds to bring current? Try a local REIA club. I see that you are in Florida. Where at? If its near me (Vero Beach) and the deal looks good I might be interested. Heck I can even do the rehab.
Just email me if you are interested.