Posted by John P S.FL on January 26, 2000 at 05:37:50:
Steph,
Yes, you are right it does not cost $7,500. for title insurance. I was implying the total cost to sell the property could run about $7,500.00 Sorry I miss that one.
John P
moments away from foreclosure - Posted by Karl
Posted by Karl on January 24, 2000 at 23:23:52:
A guy calls me wanting a mobile home, because he’s about to give his house back to the bank. I said - forget the mobile home, tell me about your house.
House appraises for about $92k. Desirable area of Cincinnati, good schools. He owes $75k, is 4 months behind on payments, just wants to get out of the house with whats left of his credit. House is a 3br ranch, just remodelled, great condition. I want to flip this to a buyer who is looking for houses in this area for rentals, might pay around $75k based on what I’ve told them, still waiting to hear back from buyer.
I called the out of state mortgage company today, talked to short payoff dept. They say foreclosure is scheduled for Thurs the 27th, today is the 24th, they need $75k right now, or they need $1200 to keep out of foreclosure for another 30 days. I say I’m trying to buy the house and help everyone out if they can work with me a little on the payoff amount. They want the $1200 and an offer on the house, they’ll let me know if the offer was accepted, or they’ll make a counter offer. I’m not going to pay $1200 in hopes that they’re negotiable on the price.
My buyer is a veteran investor, I can turn the whole deal over the them and take a measly finders fee, but I’d rather gain the experience of putting this deal together. I’m just looking to make a quick flip profit, a couple grand would be nice, don’t want to commit much to this if it doesn’t work out. But its an opportunity. Any ideas on getting the mortgage company not to foreclose in 3 days, and move on the payoff amount, without having to cough up the $1200?
Karl
Re: moments away from foreclosure - Posted by John P SFL
Posted by John P SFL on January 25, 2000 at 08:40:26:
Karl,
You did not mention what the late payment and attorney fees are? The 75k is the total or is it what is left on the mortgage? Are there any repairs? If you where to pay the $1200. and retail it, you need to remember that you should buy title insurance and it will cost you about $7,500. to sell it, That would not leave you with much of a profit. The best case scenario would be to try to get more time or get the investor to put a offer on the property and do a short sale to the bank and purchase it. The numbers would still have to work you would need to get the property at about $65,000.00 (based on $92000.00) minus repairs if there are any.
John P.
if it were me… - Posted by steph in tex
Posted by steph in tex on January 25, 2000 at 07:36:05:
if the house will appraise a little higher, say 97-98K
which i find to be easy enough to get usually (get an appraiser to do a drive by–they do it for me for 20 bucks)…and conditions are right (market, comps, etc)
i’d cough up the 1200, and offer payoff or a little less, say 70K…ask for 60 days to line up your financing.
no guarantees, but that buys you 30 days at least,and if they’ll take less–more profit for you to work with-if you know you can get it sold, do it.
the problem will be if they want more than 75K, if you
can’t get an appraisal for higher than 92K-- then the deal gets skinny. but you aren’t out any money ok- 20 bucks) finding those things out. 1st get that drive by and then make an offer @70K.(fast! you don’t have time to screw around!)
what are comps? how fast are things moving? will the guy pay you rent for one month if he can hang on 1 more month? so you can recoupe some of your cash? even 500 bucks?
then i’d run an ad for XXXXXX–must sell fast! X below appraisal-pendind f/c…
something to get attention… i ask for option money only-(instead of earnest) with additional money due if it extends beyond 20 day-- guess how much option money i ask for? 1200 right? then you recoupe your cash- maybe pick up 500 bucks, and hopefully sell that house!
something to think about—but check your comps, DOM, and work closely with that mort co.
just my ideas–
steph in tex
How about bankruptcy? - Posted by Ben
Posted by Ben on January 25, 2000 at 07:28:57:
I am a foreclosure attorney and always get stuck with a last minute “BS BK” which I always get dismissed but it buys the property owner some time, even a few months.
title insurance for 7500–? no way- - Posted by steph in tex
Posted by steph in tex on January 25, 2000 at 19:46:32:
maybe $750.00-$800.00, but not 7500.00–
not where i’m from.
typically 1-1.5% for a title policy
steph in tex
Re: moments away from foreclosure - Posted by Karl
Posted by Karl on January 25, 2000 at 09:22:29:
Home needs nothing, been completely remodeled six months ago, had chimney fire, insurance company paid $56k for new roof, new HVAC, all new interior in LR, DR, kitchen, have all the receipts, house looks like it was just built (actually 45 years old).
$75k is principle owed, mortgage co would take that, but in two days it becomes about $80k if they foreclose, due to attorneys fees, etc. They would still consider an offer, but I’m sure they’ll want more when they start foreclosure. Just trying to stall that without paying $1200.
Karl