Glad you’re thinking creatively, however in a foreclosure situation, the bank does not want to hear your offers of taking subject to or lease/ options. They want one thing ---- MONEY, as in hard, cold cash.
So my offer would be the balance of the defaulted mortgage of $137,000 and the liens of $12,000 which equals $149,000. Your argument to the bank is that your are clearing up the liens and giving them their balance on the mortgage so they don’t have to show a loss. Even though back mortgage payments amount to $10,000. And it is $10,000 that the bank did not get. The bank might be more concerned of not showing a paper loss of the mortgage balance . I am working on a similar deal now where the bank is foregoing their back payments, I take over the loan balance so they don’t show the loss.
Good luck with your offer. Don’t offer the $185,800, at least right now.
Seller in preforeclosure – date is june 2 (mort co will prob extend with p&s)
House is in great shape
ARV with $4k(max) to shine up, sell for 260-270k
Mort is 137k, leins are 12k, back pmts 10k = 159k owed
only thing needed to be paid off immed is 10k
I am offering
1- cash deal 185,800 ((270k-30%)-4k) closing in 60-90days, if mort co allows, I pay 10k now and rest 175,800 at close.
2- THIS IS WHERE I NEED HELP-- Offer “subject to” financing,
pay $10k now, take over pmts and taxes ~2k/mo -(should rent for 2600/mo w/o prob) -and buy for 216k- to close in 60 months (5 yrs) or before — I need to have some security with a 10k investmt, I was thinking L/O, which would work but only if the 10k was deposit and refundable??
Can you do a subject to like this, or is L/O better??
ANY IDEAS, PLEASE HELP.
Jason Perry NH
The county I live in has ~40 houses per weekly auction. Ninety nine percent of them have negative equity. I guess I need to spend my time doing something else
