Posted by shortyman on October 23, 2003 at 18:40:31:
Looks like a candidate for a short sale.
FMV=115k
If they were foreclosed on the banks feel like they would get their notes back in full right? (95+17= 112k)
so what you do is take pictures of the worst parts of the house and see if you can get the FMV down from 115 to like 90-100 range or less because it needs lots of work, etc…, contact the 2nd w/ this info and let them know the owners can’t pay and the house is likely to foreclose. get the sellers to write a hardship letter and attest to this. negotiate them down from 17 to however low they will go and you will create “more room” in the deal.
if you make them feel they possibly could get wiped out, they will take alot less than 17k.
I need some advice on what I should do (or not do) with this deal.
I was contacted by a motivated couple who were 2 months behind in payments. Numbers are:
The owners are willing to sell sub2 and just want to walk away. There is no way I could rent the house for anywhere near $940 so a L/O seems to be out of the question.
I was thinking about taking the house sub2 and selling with owner financing for 120k. 5-10% down and 10% interest with a 3 or 5 yr balloon. That interest rate would cover the $940 per month payment.
I realize there is not a whole lot of room to work with and I’m not trying to make a ton of money off this deal. I was just trying to raise some cash by making anywhere from 5k-10k up front.
I would greatly appreciate any advice or opinions on how to structure this deal(if possible).