Posted by Glenn-PA on May 28, 1999 at 21:11:16:
Sandy - Thanks for the response. I’m on to a deal here for sure. The father and son are very motivated. The lender however seems content to just sit back and let them default. It’s a mortgage company so I don’t understand their lack of motivation. They’ll easily eat $5K by the time they foreclose and resell through a realtor. One idea I’m kicking around is to go to the lender and ask them to lend me $40K (25K purchase price and 15K rehab $). I have excellent credit, strong balance sheet and excellent job income. They would essentially be replacing a non-performing loan for $39K with two loans worth $40K. I’d be in the place with after rehab cost of $40K. Any ideas? Is this something a lender might go for? The rehab consists of new kitchens and baths on each side, carpet, paint, etc. Normally, I do the kitchen and baths myself (far to expensive to sub-out) and hire out everything else - nothing I haven’t done before. Anyway, thanks for your time and good luck in your endeavors.