Posted by Lynn on October 31, 2000 at 06:57:18:
Sometimes it can be very tough to get positive cash flow when there is a high interest rate first, especially when it is combined with a second mortgage, and compounded when the seller is $15K behind.
One option would’ve been for you to get a straight option to purchase. He owed around $271K with back payments and taxes, and he was willing to walk, so you could’ve gotten an option to purchase the property for $271K and advertised the home as “Desperate Seller, must sell FAST $320K home for only $290K” If you found a buyer you would pocket the difference between what you sold it for and your option price, in this case$19,000.
Although we don’t like to have personal liability on loans, another option would’ve been for you to buy the property yourself with traditional financing and then resell it for either cash or terms. The financing costs would eat up some of your profit, but give you more time to do something.
This is just a couple of ideas, I’m sure someone will post a few more.