Posted by Cosette Austin on August 07, 2003 at 19:23:31:
If you don’t want a new loan and to do it as a purchase the thing to do would be to give her the 2k and have her quitclaim the deed. Get a power of attorney and an Authorization from the owner to speak on their behalf for the loan and ask the bank if they will tack the arrearages on to the back of the loan. There’s a term for that but I can’t remember what it is (reorganize I beleive). You can speak to the bank about a payment arrangement to make the current payment plus a portion of the arrearages to get it the loan current again.
My only concern would be 1.don’t take the owner’s word for the value. Call a local appraiser and ask them if they can give you a comp for the value of the property.
Then is it worth it? The propery is only 90% LTV after the arrearages are paid is it worth it? Can you find a renter to pay the mortgage and at least break even?
I had a woman answer my ad in the paper with a real problem. She is currently 5 months behind in her mortgage payments for a total of $6276. The payoff on the mortgage is $127,000 and she said the house appraised out at $142,000. Is this a doable deal? If so, how should I structure a deal?
Re: New Investor Question - Posted by Cosette Austin
Posted by Cosette Austin on August 07, 2003 at 18:30:52:
Well, if you have the $6276 you could write a 2nd on it for the amount at 11-14% interest (I would charge interest only payments so that you still have the principal when she refinances or sells).
Another way would be for her to quitclaim the deed to you and you pay the arrearages keeping the loan in her name and simply give her money to move like $1500-5000 depending on what she will accept and you can get a renter in there.
Or of course you could help her by selling the house to you(you get new financing)… for 127k plus arrearages and she can just walk away from the property.