How should I finance this - Posted by Chad NoCA
Posted by Chad NoCA on September 18, 2003 at 09:42:39:
I am working with a recently divorced disability recipient (can’t work right now due to injury) who wants nothing to do with his home.
asking 165K FMV= ? (last appraisal 2yrs ago=165K, owner thinks 175-185K)
Owner is currently redoing both bathrooms and painting the interior and is not adding any of the gained value to the price.
1st 118K at 7% FHA loan with WASMut Pmt=$1068
2nd 47K at 12.99% Homcomings Financial Pmt=$537
Total pmts= $1605 (includes PMI and taxes= $283)
He says both are assumable
He fell behind on the 2nd last month, but paid it up before any foreclosure filing. He is up for anything to get rid of house. He wants to file BnkRup if I can’t help him. I thought about lease/option, but I don’t think the rents will cover payments without having owner take on the negative cash flow. Would rather buy sub2, but the payments are insane due to the high interest on the 2nd, and a wraparound would have to be at an interest rate that I don’t think would bring in many buyers. The owner is willing to let me talk with his lenders and says that he will threaten BnkRup over the phone or in writing if I need something to help get the lenders to accept a shortsale. Is this deal worth it and how should I procede to make the best of it. I have never contacted lenders about this type of thing, but there is a first time for everything. Its the most motivated seller I have dealt with since I started (still somewhat a beginner). Thanks-