to deal or not to deal? - Posted by David MacGown

Posted by karp on April 20, 1999 at 20:11:53:

Dangit, in spite of me ripping the capslock key off of every keyboard in my office, I still manage to hit it and look like a goon. Sorry.

karp

to deal or not to deal? - Posted by David MacGown

Posted by David MacGown on April 20, 1999 at 10:07:42:

I am a new invester and am in the middle of my first deal.
A woman responding to one of my ads wanted to move out of their home into something smaller(2br) The kids were grown so they no longer needed the extra space. She said she was interested in renting to own(l/o’s my niche) We had a pretty good rapport going on the phone. I put my self in her kid’s shoes to sound most sincere(I’m 29). “It would be very difficult to see the house I grew up in sold…so many memories.” suddenly,she poured her heart out to me.
They are facing a forclosure. 4 mo. behind on payments.
The house is listed with a realtor,Its been on the market for over 3 mo. When I asked her if she would be interested in leasing her home with an option;she said,“yes,absolutely"
I suddenly felt a feeling of guilt(because it is listed with a realtor) I don’t know all the rules,but I sure didn’t want a reputation as"unethical.”

I told her I didn’t want to step on toes,but if she is really interested to contact her realtor. Her realtor called me within the hour. He told me there is no way to buy with a lease option. You would have to apply for the loan to take over the mortgage,because it has a due on sale clause as well as facing forclosure.
What can I do in this situation? this is my first deal. I am so close! I don’t want to lose it. PLEASE somebody give me some advise…Should I persue this or leave it alone and look elsewhere. I am so new that i don’t recognize a great deal when I find one yet.(lol)
Thank you,
David

Are you prepared? - Posted by Bud Branstetter

Posted by Bud Branstetter on April 20, 1999 at 22:41:25:

Are you prepared to to make up the last 4 payments?
Are you prepared to find a T/B that is willing to move if the realtor brings an offer identical to that listed?
Are you prepared to pay the realtor the commission if need be?

A realtor can not tell me who I can lease my house to or who I can give an option to. My contract says that I will sell if I get what it is listed for. Then the realtor gets their deserved commission.

HERE IS WHAT YOU NEED - Posted by karp

Posted by karp on April 20, 1999 at 20:07:42:

  1. Notice of Default from Recoder’s Office

  2. Contact Foreclosure Atorney and ask them to get you both the payoff and the reinstatement amounts from whoever is foreclosing.

3)Have the seller call her underlying mortgage and request the same info as number 2.

  1. Find out how much money they have to bring the deal current (if they want)

  2. How much equity is in the house

  3. When is the last date to bring it current?

  4. When is it set to go to AUCTION?

Start with that info, and respond, and we will help you from there!

Thanks,

karp

Re: to deal or not to deal? - Posted by CarolFL

Posted by CarolFL on April 20, 1999 at 10:59:16:

There are those more experienced who will no doubt respond, but, of course it can be done _ IF you can stop the foreclosure by making catch up payments.

If it’s a good deal - you might offer to catch up the payments, get a lease/option contract on the house, which means you would be taking over the payments, maintenance, etc, and then get a tenant/buyer in there with, for example, the equivalent of 4 + months option consideration!

The key is figuring out where she is in a preforeclosure situation, and how to cure the loan. Once that is done, you ALL can breathe and keep moving.

She can deed the house to you, do a l/o - a number of different ways. Be sure, however, that the title is clear, that there are no other liens against it.

If she trusts you more than she trusts the broker, you may be ok. Ignore the broker. All he has to do is pick up a commission on a sale, if she will sit down and do a deal with you, you can work it out. A friend of mine contacted the owner of a property, negotiated the deal, signed a contract, and THEN they called the broker who had it listed to tell him he could expect a commission shortly!!

Again, be sure that the figures work for you, but - once again - the broker is full of beans.
Good luck.
Carol