Posted by PBoone on November 10, 1998 at 12:24:32:
Walk away fast. There is no deal here.
110K purchase price
3K To seller
What about attorney’s fees? This could be 1K-5K added to your cost.
If these people are behind in payments so far that the auction happens in 1 month they should offer to pay you to save their credit.
Pat
More Info for Offer Suggestions - Posted by John Estell
Posted by John Estell on November 10, 1998 at 12:04:07:
Well I finally got to talk to a live person. The person called and gave me the following info on the property that was discribed in a previous message as: Foreclosure Pending-Owe $110K-Best offer by 11/15/98-All financing considered-Will quit claim. I talked to them and was given this information:
Owned 3 1/2 years, appraised then for $95K and they got it for $85K. The market value in their neighborhood the houses have been going for $120- $140K. They have done lots of renovating, near completion. The $110K they owe is for a 1st and 2nd mortgage. The husband lost his job so they need to get out. Their foreclosure is the 15th of December. They want $2,000 - $3,000 to help them out. I hope this is enough info for anyone who can now give me some suggestions on how to approach them. I am a novice remember. I’d like to help them but I don’t have the $2,000 - $3,000 to give them. I’m opened to all suggestions. Thanks.
Re: More Info for Offer Suggestions - Posted by Mr Donald
Posted by Mr Donald on November 10, 1998 at 16:49:54:
Wait for the auction, and make your profit going in.
Re: More Info for Offer Suggestions - Posted by phil fernandez
Posted by phil fernandez on November 10, 1998 at 13:31:03:
John,
No deal here. Too skinny. Let’s see. $110,000 owed, sellers want $3,000. Must be some back mortgage payments, back taxes, attorney’s fees and penalties involved if it’s going to foreclosure on 12/15/98.
Why are the sellers asking for anything. You are doing them a favor by bailing them out. If property is worth $120,000 there is no profit potential here. And remember you will still have closing costs and holding costs.
Re: More Info for Offer Suggestions - Posted by Bud Branstetter
Posted by Bud Branstetter on November 10, 1998 at 12:51:47:
John, If I were going over to talk to them I would want to know what the ARV of the house is. Not what other houses of different sizes in the neighborhood might sell for but what this house could be sold for. If they want 2-3K I would bet that there is 6-8K in back payments and fees. Unless I know for sure that the upside potential on this house is 20K profit I would not give them much if any.
You can always work out co-operative agreements with them but a 20K span on possibilities of value needs to be refined.