Mr. Garcia, Your Advice Please... - Posted by Avril

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Posted by Ed Garcia on July 02, 2003 at 11:00:19:

Avril,

You state? woman willed a home in 1999; house purchased in 1995; she is on welfare w/ 3 children; she wants to move to florida in august;house needs some repairs… I’d say valued at $7k to $10k; she is behind on one payment; not behind on taxes.?
Avril, I find it difficult to believe a borrower who is only one payment down and not behind on taxes, to be in foreclosure.
If so, all she or you would have to do is bring the account up to date.
At this point the ideal situation would be to cure the first assuming the 2nd and the 3rd are current. The 2nd and 3rd are not much money and even if they are behind it doesn?t appear it would take much to cure them as well.
Avril, this story doesn?t make sense to me. You also casually mention that she is currently going through bankruptcy, meaning that this now becomes an asset that she can only sell with the courts permission.
Avril, I will call you at the number you have given one time. If I miss you I will leave a my number to return the call.

Ed Garcia

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Mr. Garcia, Your Advice Please… - Posted by Avril

Posted by Avril on July 02, 2003 at 01:57:54:

I am a newbie and I have a situation.
I have this seller who is going through bankruptcy and she tried to get the house refinanced by Aegis Mortgage and they turned her down.
I was going to try to a subject 2 but now it does not seem possible. I am at a lost as what to do. Now let me give you the details of the deal…

Seller:
woman willed a home in 1999; house purchased in 1995; she is on welfare w/ 3 children; she wants to move to florida in august;house needs some repairs… I’d say valued at $7k to $10k; she is behind on one payment; not behind on taxes.

Sellers Needs/Wants:
Asking Price: $149k
needs to move to Florida, needs money to move to another state and start over; moving truck.

Buyers:
Newbies; no money; just out of bankruptcy 1-1/2 yr.; bruised credit; started putting up WE BUY HOUSES SIGNS; starting to get a few calls; we attend a couple of real estate investor clubs (know a few investors in the area).

The House:
4 bedrooms; 2.5 baths; 1669 sq.ft.; built in 1991; 1 car garage;in-ground pool; Aegis Mortgage appraised house at $153k; Tax Assessed @$142,700

The Financial Part:
Original Loan: $108,150 @ 9%
PITI: $1094.90 (PI = $813.88 + ESCROW = $281.08)
Taxes:$1678; Annual Insurance:approx. $600
Monthly Assoc. Fee: $100
American General (2nd): $10k
Transouth (3rd): $11k (I think Transouth is willing to take $5k, negotiated thru the bankruptcy lawyer)
Lawyer:$2k
Current Balance:$93,193.74

I did a CMA and the houses are selling as follows:
Low: $128k; Average: $136,600; High: $146,900
Longest Market Time:26 days

What kind of deal can I make, if any? Is it possible for her to get some kind of financing even though she is going thru bankruptcy? Thank you in advance for your help. I think that I have everything down, if I have forgotten something or you want to talk to me…my #757.246.3086 or if you know of any Mortgage Brokers, Lenders, or Hard Money Lenders in VA that can or might be interested in helping.

Enjoy your blessings.
Avril