Posted by Roy on October 23, 2000 at 15:57:57:
Offer $2500 cash to mortgage. ( She may take it )
Take property, subject to.
then use the remaining $2500 cash you have and bring the payments current.
Lease Option the house to a Tenant/Buyer (as-is) for $250,000
at $2500 mo with 10K down as option consideration
HowDoes one getCash for a subject-toTransaction? - Posted by Mrs SD
Posted by Mrs SD on October 21, 2000 at 14:24:38:
A relative wants to deed their 2-fam home to us subject to existing financing. She is extremely motivated due to job loss. We would like to keep it for a rental but are stumped as to how we can provide cash to the relative for moving expenses. She asked for 50K, I told my husband to find out from her what she needs rather than what she wants (his relative, I’m a third party).
Here are the numbers:
FMV: 220K
existing mortgage: 143K
balance for home improvement work done:20K
Monthly mortgage payment: 1610 (she’s one heading into two payments behind)
Monthly rent potential: 2400
Repairs needed: 5K
She’s behind on school taxes, doesn’t know how much she owes, my hubby’s going over today to help find paperwork and determine what she needs out of the deal.
The absolute maximum that we can come up with on our own is 5K, then we’re totally tapped out.
My guesstimate is that she will say she needs 10K. So how do we bring everything current and give her what she needs?
Thanks,
Mrs SD
HowDoes one getCash for a subject-toTransaction? - Posted by JohnBoy
Posted by JohnBoy on October 21, 2000 at 22:29:34:
Is that $220k FMV based on the current condition of the property or AFTER the $5k in repairs needed are done? If this is current FMV before repairs, what would FMV be after repairs were completed?
Is that balance of $20k for home improvement work done a second mortgage on the property meaning they owed $143k + $20k + $3220 back payments + $Back taxes?
If you needed to, could YOU qualify to refinance the property after they deeded it to you?
Thanks very much for the responses… - Posted by Mrs SD
Posted by Mrs SD on October 21, 2000 at 20:33:57:
We’ll see what happens with the refinance and second mortgage ideas. The numbers don’t seem very promising to me but we’re trying to help family out of a jam.
Mrs SD
Re: HowDoes one getCash for a subj - Posted by dewCO
Posted by dewCO on October 21, 2000 at 19:51:01:
Well Pat is normally right, but with her arrears she may not be able to at a reasonable interest rate for the refi, or for just a second to get cash out. She should try the second cash out route first with a second I think. Of course, then if you want to hold it, it has to make sense (cash flow) and at a high interest rate that might be prohibitive. And she likely doesn’t NEED $50,000 just WANTS her equity. Maybe she can wait for the balance, after she gets $5,000 or so out to move.
You might try just selling it straight away, by having her deed it to you(!!!) and you all split what you clear. That’d put some cash in your pocket toooooo! You know sell it some below market for an investor or to whomever, with a steal this house ad.
Easy - Posted by PBoone
Posted by PBoone on October 21, 2000 at 19:35:23:
Have her refi, save your cash for reserves it will be needed
Pat
Re: HowDoes one getCash for a subject-to - Posted by Mrs SD
Posted by Mrs SD on October 21, 2000 at 23:00:42:
220k=after-repaired value
not sure about the home loan amount. The first time my husband asked her she said that it was another mortgage but when he asked again she said that it wasn’t. He’ll be getting her to look through her paperwork and clarify this.
I don’t know if we could qualify or not for a refinance. Good credit, ok jobs, high debt and small savings.
Thanks for responding,
Mrs SD