Posted by ken in sc on March 09, 2001 at 15:50:53:
you need $3,000. This looks like a good deal. Personally I would sell on a lease option for $3,000 down. Thus, if you can borrow $3,000 from anywhere for long enough to sell it, then you are looking good. Make sure you can get the $900/month on the ls/op (but that sounds about right to me), and make sure you check the title. And check comps yourself to make sure value, don’t count on the appraisal. Not all appraisals are created equally. I can say that 'cause I am an appraiser!
Now get to work and don’t be slow, the $3,000 is getting larger as we speak!
I am talking with a desperate seller who has just recently served with a Notice of Default.
Hous is worth approx. $125K (appraised at that six months ago). Seller pays for about $900 mortgage each month and is $3K in arrears. Total left on the note is $105K.
What are my possible solutions? I was thinking taking over subject-to and then selling on a land contract, but, I don’t have $3K to play with right now.
Re: how can I handle this? - Posted by B.L.Renfrow
Posted by B.L.Renfrow on March 10, 2001 at 10:38:58:
You have gotten good advice below. If you have some time before it goes to foreclosure sale, you can market extensively and try to use you buyer’s downpayment or option money to make up the arrears.
Also, what about repairs? Remember to factor in the cost of any work you’ll need to have done before you sell or lease.
Just make sure you have a backup plan, in case you can’t find a buyer right away. If you have no cheaper sources of funds, I’m sure you could find someone willing to partner on the deal for a percentage of the profits. Even if you have to give up some profit, it’s more than you have now. So get going and get it signed up!
Vladimir,
What state are you in and how long until the foreclosure?
Do you have already have a buyer’s list?
Do you have a credit card or friend with 3k?
What’s the house really worth?
Why was it appraised 6 months ago?
What will it rent for?
Have you done this before?
If so, how long will it take you to find a buyer?
Is the seller willing to walk with no money?
If your numbers are good, it will cashflow and the seller just wants out, this is an easy deal. Run an ad and find a buyer with the cash. Yes, you could take it subject to in a trust and either L/O or sell it on contract. Hope that helps…