In need of advice on deal please! - Posted by Tim
Posted by Tim on July 29, 2003 at 12:21:53:
There is a 3 bedroom/1529 sq ft. house that I’m currently trying to parlay into a deal. This house has been vacant for about 3 years, and is in need of alot of rehab work (15-20k approx.) The homeowner lives out of state, is willing to work with me, and has already signed the letter of authorization for the lender. The lender faxed me the amount owed which is $102,740…$27,600 of this is interest owed from the past 3 years. If I’m not mistaken, the current lender(Countrywide) is the 2nd, or 3rd company to have bought this note from the original note holder. After going through the house with some contractors I asked the individual handling the account in the loss mitigation department if they’d be willing to accept a short sale offer for this property. She told me that there are other liens on the property, and that they’d have to be taken care of prior to them accepting any short sale offer. After going down to the court house, I found that there are indeed 4 other liens on this property. 1 for a hospital bill totaling $2,600, 2nd for a clinic totaling $1,300, 3rd for an insurance company totaling $3,400, & last for an attorney bill totaling $550. The comps in this neighborhood vary from 113k-135k. This house is also in a very sellable neighborhood if I can figure out how to pull this off. My question here is, if the lender will not accept a short sale offer until the other liens are taken care of, how then can I be sure that I’d be getting a deal considering the circumstances/amount of monies owed, plus needed rehab? Have any of you pros ever been through a similar situation as this one? Eventhough, I have never put in an offer to purchase the note, should I in this situation offer to buy the note at a discount since they won’t sell via short sale due to the other liens? Thank you all very much for taking the time to read this, and any input, and/or advice would be greatly appreciated. Have a great day all!