Need help on a foreclosure-$100,000+ equity! - Posted by Jim_NC


#1

Posted by Jim_NC on January 04, 1999 at 14:22:38:

JohnBoy,

I have tried to call and get the exact figures but he is out right now. He said he owes $455,000 on the first and $82,000 on the second. I don’t know for sure but I’m sure they are both behind. I will find out.


#2

Need help on a foreclosure-$100,000+ equity! - Posted by Jim_NC

Posted by Jim_NC on January 04, 1999 at 11:22:32:

I received a call from a guy who’s house is being foreclosed on Jan. 26th. The FMV of the house is $650,000,maybe more. He owes $537,000 on it. His payments are in arrears $40,000. He is willing to do anything to get rid of the house before it forecloses. There is a first and second on the home and the total of the payments are $4000. I don’t know what to do with this deal or if there is anything I can do to make it worth my while.

Does anyone have any suggestions on how to handle this deal or if there is even anything I can do? He will do a L/o or give me an option on the house for the payoff.I just don’t know how to handle the arrearage and stopping the foreclosure or if it can even be done.

Any and all suggestions will be greatly appreciated.


#3

Keep swinging, you’ll… - Posted by Lee

Posted by Lee on January 04, 1999 at 22:22:35:

hit that home run.

Run a title search first and if it is a “first” they are foreclosing on and the title is clean, find an investor with $450,000 front pocket money (HA), $408,333 (of the $450,000) should buy it at sale if it is “with appraisal”, and reserve the rest for fix up or…

Aproach the buyer of the house after the sale, (buyer will most likely the mort. co) (they know the color their elephant is) and hand them your “offer to purchace” right then and there, include your address and phone if they want to sell it they will call you.

Always seek to solve their problem.

KEEP SWINGING!

Lee


#4

Re: Need help on a foreclosure-$100,000+ equity! - Posted by Joe Kaiser

Posted by Joe Kaiser on January 04, 1999 at 17:36:59:

If this was a $65k house with $53.7k owned plus $4k in back payments, would you even give it a look?

Me neither.

Joe


#5

Re: Need help on a foreclosure-$100,000+ equity! - Posted by Cesar

Posted by Cesar on January 04, 1999 at 17:03:52:

I only have a couple of questions for you:

  1. what are the odds that YOU will be able to sell this house after you have it contracted? Remember, there are very few buyers for houses in this price range. The monthly payments are more than most people make in two months. Be careful here.

  2. has the house been on the market before? For how much? Are there any other houses in the area selling? For how much? How long does it take to sell one of those houses after it’s listed? You will have to make the payments if you don’t sell it right away, are you ready for that?

3)How much is owed for the foreclosure? Remember that everything will have to be up-to-date, including attorney’s fees and any other liens that the house may have. Does it have a tax lien? Mechanic’s liens?

I personally would not touch anything in this price range, because it is a lot of trouble to get rid of, and not much of a buyer’s market out there for it. Even though the $100,000 worth of equity is attractive, that could easily be eaten up with all the work that needs to go into it (any repairs need to be done?) and after paying everyone off. Unless you have someone ready to move into this house, I might look for something else.

just my opinion.


#6

Re: Need help on a foreclosure-$100,000+ equity! - Posted by JohnBoy

Posted by JohnBoy on January 04, 1999 at 12:02:23:

Which one is foreclosing, the 1st mortgage or the 2nd mortgage holder? How much is owed on the 1st and how much on the 2nd?


#7

Re: Need help on a foreclosure-$100,000+ equity! - Posted by Sam Sadat

Posted by Sam Sadat on January 04, 1999 at 18:27:24:

Forget it! Big numbers just look attractive but they are extremely difficult to profit from. Remember a good foreclosure deal must not exeed 75% LTV (Loan to Value Ratio). The more expensive the house the lower the LTV must be to make it viable. Follow this rule and you’ll minimize your losses.


#8

Re: Need help on a foreclosure-$100,000+ equity! - Posted by Jim_NC

Posted by Jim_NC on January 04, 1999 at 18:08:58:

Good Point!