Posted by Alan on February 14, 2002 at 09:13:16:
Thanks to everyone for their advice. I still haven’t been able to contact the owners so i guess they probably wont be too helpful. I will keep trying and if I cant contact them, i’ll have to go bid on it.
Again I want to thank everyone for their advice and help and I will let you know how it goes.
Help with stucturing foreclosure deal - Posted by Alan
Posted by Alan on February 13, 2002 at 10:42:31:
Hi everyone
I’ve been reading on this site for awhile now and I have to say that this is, without a doubt, the ultimate resource for information regarding real estate. I have bought many books and a few courses but none of them are even close to this site.
Anyway, heres my situation:
I just found a foreclosure that is being foreclosed for the amount of $106,000. It is in an area where the appraised value is around $160-165,000. The house doesn’t need any work.It requires a $10,000 deposit with the amount due in 15 days. Now I can probably get hold of the deposit but I will never qualify for the difference.I was thinking of going to a hard money lender for the rest.
Is this a good way to go about this deal or is there perhaps a better way that i’m not thinking of? And is there also a way I can avoid having to lay out the $10,000?
Re: Help with stucturing foreclosure deal - Posted by JT-IN
Posted by JT-IN on February 14, 2002 at 08:44:08:
Alan:
Have you been in touch with the homeowner, to determine if they are cooperative to curing the default and moving on? If so, then you could purchase the property SubTo, then cure the default, (back pymt and fees), and keep the existing financing in place. Of course, you would then get a T/B to pay you out over time, enjoying the spread of the deal, with some upfront cash. If you pursue this avenue, do not involve the Bank in these negotiation.
If the owenrs are not immenable to this, then you may be struck dealing with the Bank. You will either need hard money, or a partner, to consummate this deal. Depending on where it is located, you may be able ot find the partner through this site, if that is the preferred approach. You may want to post the area/location for any possible interest. Best of luck on it.
Just the way that I view things…
JT-IN
Re: Help with stucturing foreclosure deal - Posted by Stew(NE)
Posted by Stew(NE) on February 13, 2002 at 13:05:42:
These would be two other ways to attack the problem that would be cheaper
Re: Help with stucturing foreclosure deal - Posted by Brent_IL
Posted by Brent_IL on February 13, 2002 at 11:05:14:
If your the only one in the running, place an ad in the newspaper that features, “Seller will finance and pay closing costs with 10% down payment.” If you get someone with $16K, give the $10,000 to the bank and enjoy the monthly spread. If no one responds, you eat the cost of the ad.