Posted by John (WA) on December 10, 1999 at 15:28:13:
Gee, you would think that leaving in their name would be a pretty good trade off for the long term implications of a foreclosure. Since there’s basically no equity then there’s nothing for them to split. I guess I would be inclined to show them the benefits to taking the bird in your hand. If they fear an eventual problem with the property such that they would get it back, that problem would only be conjecture. The foreclosure sounds certain. Just let them know the offer stands till the payments become delinquent then the offer is off the table and move on.
Posted by Terry (Dallas) on December 10, 1999 at 12:50:56:
Found a nice house that has the couple going through a divorce. Could probably get for the mortgage but they have to get it out of their names. L/O and ‘subject too’ won’t work because the mortgage would have to stay in their names.
If they deed it over it is still in their name.
Fast selling and very desirable area that could be flipped easy but I am looking for ideas.
The equity is very low ase they have been in it for a very short time.
It would also appear that they are getting close to the forclosure world on this one.
Thanks in advance.
Re: Thoughts on this one?? - Posted by Terry (Dallas)
Posted by Terry (Dallas) on December 11, 1999 at 09:41:23:
Thank Yall for all of the answer’s and responces. I don’t guess that they are motivated (yet) enough. Oh well! Gonna go out lookin more.
Thanks again and
Happy Holidays
Terry
Terry:
If the numbers make sense and you can lease the property for postive cash flow, there is nothing wrong with FORMALLY assuming their mortgage and getting them released of the liability to repay the debt. This seems to their “hot button”.
Although you would not be picking up an equity if the property produces cash flow then you can hold it for longer term investment as a “Keeper”. However make sure your #'s are there. Taking on liabiilty is smart ONLY if you know you can cover the monthly “nut”.
Posted by John P on December 10, 1999 at 21:28:56:
Terry,
You could take the property subject to and put it into a trust. Yes, the mortgage would still be in their names, but you would be making the payments. You could then do a L/O on it or if there is some money to be made you could sell retail or just rent it (instant landlord). This would be a better scenario then a deficiency judgement that they would receive when the bank could not get all there money at the foreclosure sale.
Posted by Steve-Atl on December 10, 1999 at 14:19:41:
They want to get it out of their names, but they NEED to avoid a foreclosure. If they only have those two choices, a deed or lease option will preserve their credit. Frankly, since they have no equity, they are not motivated enough if they won’t lease option or deed you the property. Sometimes they say they are motivated but not enough to make it work for you.