Posted by Manny on August 01, 2003 at 17:22:18:
Anyone with any advice or strategies…
Manny
Pre Foreclosure Deal - Posted by Manny
Posted by Manny on August 01, 2003 at 15:03:41:
Hey Gang
Got a lead on a pre foreclosure in Brooklyn New York for them NY, NJ investors. Property is being foreclosure by 1st has a 2nd as well. Here are the numbers
1st
SFR/ Rented with tenants not making payments
FMV- $220,000
OWES- $166,000
PITI- 1,498 AT 6.45%
The $ 166,000 would be the payoff amount. If we wanted to bring the mortgage current we would need $23,000. Which is pretty hefty for a tenant buyer to place on a lease option.
2ND
OWES- $23,000
PAYMENT $250 PER MTH AT 6.67%
IN ON THE PROPERTY WITH BOTH LOANS $189,000
I know the numbers are tight, but I feel we can play with this. Any suggestions on what strategy to use.
I would think I can most definitely try a short sale here. Owner says 2nd had mention to her they would consider that.
I also figured maybe I can just put a option to purchase on it and market the property as owner financing and sell it to the retail buyer , but time might be a factor with the owner just filing for bankruptcy.
She wanted to slow the foreclosure process to see if she could get anything done to get rid of the home. I also feel I can go sub 2, but not sure if that is the way to go.
So anyone with any ideas on best getting this deal done. I would appreciate any advice or suggestions.
I have a meeting with the family that is renting the home tomorrow to look over the property.
The owner lives South Carolina she left New York about 13 months ago.
Best Regards,
eliteprops
Re: Pre Foreclosure Deal - Posted by bobby
Posted by bobby on August 01, 2003 at 22:42:45:
Manny, Shortsale the 2nd for $1000.00,then short the 1st for about $141000.00.Now you have lots of equity.Sell the darn thing for $195000.00 quick sale
Re: Pre Foreclosure Deal - Posted by IB (NJ)
Posted by IB (NJ) on August 01, 2003 at 19:30:06:
I would agree that the second should definitely be shorted. I probably wouldn’t pay more than $5k (if that).
Although there’s good equity, I would probably try and short the first as well. I’ve seen situations where the 1st really didn’t have a clue as to the value of a property and agreed to a shortsale allowing the buyer plenty of equity in the deal.
But I would first get all the information. Has it ben scheduled for sale yet? How much time does the owner have? How much to fix the place up?
Without a ss from the 1st, the deal is kind of tight. You may have better luck trying to get it at the sheriff sale, IMHO