I thought it was a deal - Posted by DSmith

Posted by Luke Hoppel on March 22, 2006 at 16:56:44:

At least you made the attempt. A lot of people never even go that far.
Good luck in future deals.

I thought it was a deal - Posted by DSmith

Posted by DSmith on March 22, 2006 at 15:38:14:

I thought I was going to get my first foreclosure deal. After the foreclosure listings came out I went door knocking. Door #10 was very inviting and we talked for about an hour about their ?situation?. I went back the next day and the owner signed an information release form. On the surface this deal looked huge. 70K principal and 145-155 Comps, with only paint and carpet and a major cleaning needed.

Well I got the payoff and reinstatement info back from the attorney?s office today and it looks like there?s no deal at all. They had a 15 year loan at 13% and hadn?t made payments in over 2 years. I guess bankruptcy kept the foreclosure from happening a couple of times. Anyway they owe 36K in interest and 15K in back escrow. That plus other fees bring the total payoff to 135K.

Has anyone had any luck negotiating with the bank in these situations? If I could get them to accept Principal and Back Escrow, I?d buy it.

Anyway, even if there?s no deal here, it?s been a great learning experience. I was amazed at how these people really needed and wanted my help. I?m also convinced that I?ll be getting plenty of big equity deals in the future.

Thanks in advance for your comments.

Re: I thought it was a deal - Posted by Claude

Posted by Claude on March 22, 2006 at 18:24:53:

Have you checked with the bank about a possible short sale?

Re: I thought it was a deal - Posted by Joe

Posted by Joe on March 22, 2006 at 18:21:35:

Talk to the bank about a reduced payoff. It can’t hurt. They’ve had this nonperformer on their books for 2 years, they have to be aching to get rid of it.