Well, if the owner doesn’t need cash now, but owes $117k on a $265k property (i.e. lots of equity, so the owner should get some), then you could give them their portion of the equity as a promissory note. So if the $117k is just a single mortgage in 1st position, and that’s all that is on the property. Then you would give the owner a promissory note secured by another mortgage in 2nd position (behind the $117k 1st). Then you can take a couple months (or however long your cash will let you carry the payments) to do repairs and sell. When it’s sold, the previous owner gets their 2nd position paid off.
But, you’ll still need money to pay up the arrears, and money to rehab, and money to make payments while you carry the property.
If you can negotiate the owner down low enough, you might just try wholesaling the contract to someone else. Collect your fee (since there’s a lot of equity, this might as much as $10k or $20k). Then you can apply this towards your next deal perhaps.
I wrote about this property before and received some good advise so thank all that replied. I have the seller in pre-foreclosure for 117k house need about 15k in repairs. Property appraised at 265k back in 2004, I believe this was a after fix up appraisal. Seller asking 60k but feel he will take less. Try to go hard cash but with no luck. Was told that I would need 20k on my own money. Can’t beleive that. What I’m looking for is do any one know where I can get hard cash funding from. Or do any one know what I should do in this case. I haven’t signed any contract yet. Have the pay off and the reinstatement amount. Any information to make this deal work will be very much appreciated. This is my first pre-foreclosure and I don’t want to mess this up. I can also be reach at shirl194@aol.com