Posted by Alex Gurevich, TX on March 31, 1999 at 08:19:12:
If he is not too many payments behind, say 5-7K (although since he’s in BK it’s unlikely) you may just find a way to come up with back pmts to reinstate the loan and take it over. On a house of that size you can probably recoup your cash by selling with owner financing and getting a good size downpayment. Then, just sit back and collect interest for the rest of your life, or have a balloon if you need cash sooner.
Pre-Foreclosure situation… - Posted by Sheik
Posted by Sheik on March 31, 1999 at 07:53:28:
Could use some help…thanks.
Got a call yesterday from a homeowner who is going into foreclosure.
He owes $97,700 (including backpmts) and has filed bankruptcy. Property is worth approx. $118,000.
I know the spread is a little thin but I was thinking that either…
Do a retail flip – get it in contract and offer owner financing w/ 10% down. Create 1st (80%) and 2nd(10%) - sell 1st and (together w/ downpayment) pay off owner. 2nd will be my profit - might even manage to get some $$ at closing as well.
Negotiate short sale with lender and depending on the final sale price, either do No.1 above (for more profit) or even go the conventional route and apply for a loan and keep the property (sell w/ L/O).
Any other thoughts on how to approach this…Thanks.
-Sheik