Posted by Barbara_NY on May 13, 1999 at 22:57:40:
If you are really REALLY interested in trying, I’d recommend getting the lease-option and market the heck out of the place. Place ads in any/all papers you can find/afford. Look for “I WANT” adds for people looking for property like this one. Call realtors… let them know what you are trying to do and talk creative ideas for their getting their commission; i.e. via monthly payments, small up front with balance when the ultimate buyer closes, whatever works.
If you think you can do this that’s all the motivation you need. If you have any doubts or feel pressured by the tight deadline, trust your gut. Do what feels right for you. Good luck.
How can i offer her an out and make some $'s ? - Posted by John B
Posted by John B on May 13, 1999 at 18:34:12:
Talked to this lady today with a MUST SELL add in the FSBO section, its a 2bdrm, fireplace, detached garage, mich basement, needs minor roof work asking $40K Apraised @ @$50K, after talking about WHY she needed to sell she says it was a rental and decided not to rent anymore, i said so you basically need to get that mortgage payment made, right? She said yes, i then asked if it was current, and the REAL reason she needs to sell came out! No its not, she is $3,400 behind! Here is the numbers …
Apraised @ $50,000
Asking $40,000/obo
Mortgage Bal. $34,000
Monthly Mortg pmt $334/mo
Behind $3,400
Close to foreclosure! Now how can i get her our of this situation and make some dollars for me?? Been racking my brain but i couldnt come up with the $3,400 cash to bring it current, now what?
John
Re: How can i offer her an out and make some $'s ? - Posted by Bill Gatten
Posted by Bill Gatten on May 14, 1999 at 17:01:44:
If you don’t take Phil Fernandez’ advice (along with Dan’s)… excellent advice; then the property could be a perfect PACTrust™ candidate.
However, in either event, don’t do anything except a cheap 30 day option ($100 at most) and run an ad for a buyer: "No Bank Qual. Enjoy the benefits of Homeownership Now. $5,000 takes it, call about Lease Option (or Eq. Share Land Trust) Oppor…something like that. It if doesn’t come together quickly… shine it.
Bill
Go To Mortgagor? - Posted by leapfrog
Posted by leapfrog on May 14, 1999 at 08:42:57:
Have you considered going to the mortgagor to take over the whole thing before they foreclose? It will save them loads of cash & headache. You can re-mortgage essentially and might be able to get a better deal.
The property sounds a bit dicey-though-was it vacant for such a long time or the tenants just din’t pay. How much work needs doing? Is it only cosmetic or…? How much can you really make on this one…if you feel it takes too much effort…walk away and find another one.
Re: How can i offer her an out and make some $'s ? - Posted by Dan (NY)
Posted by Dan (NY) on May 13, 1999 at 20:26:55:
John,
You mention in your post that the house was appraised at 50K, but for sale for 40K.
You just looked at the property so obviously you didn’t just get an appraisal. The buyer is behind in payment’s so she probably didn’t pay for an appraisal. Keep in mind that a tax assessment is not an appraisal. The condition of the property is usually not taken into account in tax assessments.
So if this property has been rented a while, needs some minor repairs and such then its fair market value could easily be only 40K even though the tax assessment is 50K.
Hope this helps. Dan
Re: How can i offer her an out and make some $'s ? - Posted by Irwin
Posted by Irwin on May 13, 1999 at 19:12:42:
If she’s $3,400 in arrears on a $334 per mo. payment, she’s 10 months down, and a lot closer to foreclosure that you or she might know.
The only thing you can do without money in this situation is get a 30 day option to buy for what’s owedon the mortgage and find someone to flip it to for a finder’s fee. There’s not much room for profit, so don’t expect to make much. All she can hope for is to avoid a foreclosure. Her equity is non-existent at this point.
Re: How can i offer her an out and make some $'s ? - Posted by phil fernandez
Posted by phil fernandez on May 13, 1999 at 19:09:46:
John,
Perfect candidate for a lease option. You lease option the house for $500 on a 5 yr lease/option. The price you pay is $37,400. The mortgage balance of $34,000 plus the $3,400 in back payments.
Where do you get the $3,400 for the back payments and the $500 to give her for the option. The $3,900 comes from your new tenant/buyer in the form of their option money.
Re: How can i offer her an out and make some $'s ? - Posted by John Buwa
Posted by John Buwa on May 13, 1999 at 19:37:45:
I was thinking the same thing along those lines, but since the house is going on 1 yr with out payments, i am afraid if i gave her even $100 option money, and we do not get anyone with that size of an option payment in there soon, i will be sol, i figure based on the area and comps i could only expect anyone to go about 2k in option money… ?