How to buy this one? - Posted by doody

Posted by Another Investor on September 17, 2003 at 19:22:13:

You still ruin their credit because of the late payments. Even a couple of late payments can ruin your credit a lot.

I would get rid of this mentor, he’s unethical.

How to buy this one? - Posted by doody

Posted by doody on September 17, 2003 at 17:36:59:

This lady called my ad today, and her story is as follows:
She is going through a divorce, and moved into an apartment. Her husband Still lives in the home that will be sold, but he knows he has to go. He is not on mortgage or deed. All she wants is out(pay off)and off the mortgage. She purchased the place 3yrs ago for 70k. Comps in that area are now around 75k. Her pay off is 64k.

My mentor sais that our best bet would be to tell her to stop paying on property for a couple of months so we can do a short sale. She is thinking about it, but is their any other win/win ways?

Re: How to buy this one? - Posted by doody

Posted by doody on September 17, 2003 at 19:49:08:

What if I were to get an “option” to sell the property at pay off? What are some good ways of finding a cash buyer if I currently have no cash for marketing?

Re: How to buy this one? - Posted by Randy

Posted by Randy on September 17, 2003 at 18:26:19:

I don?t know you or your ?Mentor? but let me ask you this ?What if This was Your Mother or your Sister?? Would you tell her to go into foreclosure so you could try and work a short sale with the bank? In other words ruin her credit, lose what equity she has, face the emotional devastation of a foreclosure all so you can TRY and work a short sale?

My advice to you is get away from that mentor, he obviously has no morals and if you suggest this to a seller neither do you! There?s $10k in the deal you can pick up by doing a good deal, your suggesting you win?the seller Lose.

Re: How to buy this one? - Posted by Richie (FL)

Posted by Richie (FL) on September 18, 2003 at 22:29:22:

I would forget about an option and get a purchase contract signed for the payoff. Make sure that you put “and/or assigns” next to your name, and find someone with cash to buy your contract. Sign it over to them, and you’re out with cash in hand.

To find these investors: Join a local RE club. Call a RE attorney and fill them in on the deal, I’m sure that they have a few clients that would like take on that equity. Put an ad in the paper. Loads of ways…

Richie

Re: How to buy this one? - Posted by doody

Posted by doody on September 17, 2003 at 18:58:09:

I thought that you do a short sale just before the forclosure was filed, thus saving the sellers credit.

Re: How to buy this one? - Posted by Randy

Posted by Randy on September 17, 2003 at 19:30:28:

Well a ?short sale? before a foreclosure will prevent the foreclosure from appearing on the sellers credit, however the 30, 60, 90 day late payment do appear on the credit report as will the initial foreclosure filling. The fact the property sold before the foreclosure was concluded has little positive value.

For someone actually in foreclosure yes? a sale of any kind is better than foreclosure. To suggest someone intentionally stop making payments when they have the ability to do so just so an ?Investor? (I use the term loosely) could attempt a short sale offer to the lender to buy the property at a bigger discount?

While on the subject of a short sale, a lender will require more than just several months behind on payments to accept a short sale. You must demonstrate that they will LOSE more by not accepting your offer for cash now. Not to mention a short sale will take six months if your seller stops paying in October.

I suggest you offer the seller a real win/win scenario, offer her the payoff all cash, close in thirty day?s then find a retail buyer or another investor willing to pay you $1,000 for your deal?That is a win/win/win.