Posted by D,Driver on December 18, 1999 at 01:11:30:
It’s located in Mid-Missouri, a town w/a papulation of $40K.
Pre-Foreclosure - Posted by D. Driver
Posted by D. Driver on December 17, 1999 at 16:24:11:
FORCLOSURE IS ABOUT TO HAPPEN:
An acquaintence of mine has a 3BR home valued at $85,000. She purchased with a first morgtage of $59,000 at least 1 year ago. She later took out a second mortgage of aprox. $4,000. In obtaining the 2nd, she lied on her loan application about having a job at the time, as she is currently unemployed. She has since moved to another state and is trying to rent out the house for $598 per month, which will cover the 1st mortgage monthly payment only. The monthly payment for the 2nd is $345, which will be 2 months behind as of December 31, 1999. The 2nd mortgage holder is aware that she has both left the property and lied on her loan application about her employment, and is threatening foreclosure as of January 1, 2000. How can I arrange a quick flip without taking title and being obligated to the $943 combined monthly mortgage payments? How can I structure an option arrangement?
Re: Pre-Foreclosure - Posted by JohnBoy
Posted by JohnBoy on December 20, 1999 at 17:25:15:
Write up a contract to purchase subject to your final inspection. Set the closing for 45 - 60 days. Market the property with owner financing. Get a buyer with $5k - $10k down No Qualifying!
Use your buyers down payment and pay off the second, then pocket the difference.
You carry your buyer for the $75k (assuming they put $10k down) at 11% interest with a 2 year balloon where they will need to refinance and pay you off.
Your buyers payment to you would be $714.24 at 11% amortized over 30 years. Your payment on the sellers first is $598.00. I assume this covers taxes and insurance? You collect the spread each month and get cashed out when your buyer refinances in 2 years. That would be about $16k in your pocket when your buyer refinances.
$345 a month on a $4k second seems very high? How long was the loan for, 12 months?
You could also tie up the deal with a l/o subject to you being able to find a suitable tenant within 60 days. Use your tenants option consideration to pay off the $4k second and lease the house to them for $700 - $1000 a month. What does a $85k house in that area rent for?
Give your tenant an option to purchase for $89,900 within 1 - 2 years. If they exercise their option you deduct the option consideration they paid from the option price and pocket the difference from the sellers pay off amount on the first.
Re: Pre-Foreclosure - Posted by alikhan
Posted by alikhan on December 17, 1999 at 17:09:28:
is which city the property is
if its in dallas i would be interested
call 972-466-2551
Re: Pre-Foreclosure - Posted by alikhan
Posted by alikhan on December 17, 1999 at 17:07:48:
is which the property is
if its in dallas i would be interested
call 972-466-2551