Posted by GL(ON) on April 02, 2002 at 11:26:55:
This type property is usually not worth bothering with.You can do better. The owner borrowed the money, what did he do with it? He got it, let him pay it back.
If he will pay you to take the property off his hands OK, but that isn’t going to happen.
Sometimes after the bank forecloses, they sell for less than the loan balance.
I have heard of buying such properties from the owner subject to and lease optioning them for more than they are worth. This to me is stupid if you can find better deals. But one person who claims to be doing it, specialises in 1 or 2 year old houses,in new subdivisions, in a hot market. Small profit per unit but quick turnover and no muss no fuss.