Re: Help with Possible foreclosure deal - Posted by B.L.Renfrow
Posted by B.L.Renfrow on October 22, 2003 at 22:46:50:
Do you have the $10k to bring the loan current? If not, where will you get it? That amount is far more than you could reasonably expect from a tenant buyer as option money for a house in this price range.
Also, the sale date is less than two weeks away. Unless you are in a really hot market for lease options, it seems unlikely that would be enough time to get a T/Ber in place. I would expect the lender would only be willing to postpone the sale if the owner could show them a signed purchase agreement, with proof of funds. Or, of course, bringing the loan current would stop the foreclosure process altogether.
Have you talked with the lender to see whether they would negotiate a forebearance agreement of some sort, where you wouldn’t have to come up with the entire $10k now? And, does the $58k include the arrears and fees? If that’s another $10k on top of the $58k plus the tax lien, I doubt this is much of a deal.
Next, why do you want to do L/O and not subject to? I (and others) have posted often about the risks of lease optioning from someone in financial difficulty. That should only be a last resort, and many would say it’s a deal killer if the seller won’t give you the deed.
If you are planning to stay in the middle of this deal, do you have the cash reserves necessary to cover unexpected expenses, vacancies, repairs, etc.? If not, you should assign the deal and get out.
Finally, sure the defaulting seller wants cash…after you save him from a foreclosure, put up $10k, pay off his tax lien, do all the marketing, assume all the risk. This deal is barely viable as is; I wouldn’t see where it would be reasonable to give him anything besides maybe a U-Haul rental in order to move.