Posted by Nathan(oh) on February 27, 2002 at 09:29:03:
Rodrigo,
I am coming off of deals like this as well and making them work has been a chore. IF you get it on a sub2, you can sell it via owner finance at a high interest rate, but lately it seems that I only can sell houses when the price is right and not inflated. Therefore, you might try taking back a second as well to get the payment higher, makes it sound more logical to buyer.
Another option from the get go is to see if the seller would take a discounted rent or pay part of the 2nd mortgage. I do that a lot and it gets the payment where I need to be.
house is worth 155k
she’s willing to walk away.she wants to save her credit
first mortgage 80k , pmts of $1040.22
second mortgage 70k , 1062,84
Is it a lease option an option here?
I can get like 1500, 1600 a month from the tbuyer?
This is difficult but not impossible… - Posted by David Krulac
Posted by David Krulac on February 27, 2002 at 20:57:15:
though there are easier deals out there and you may want to pass.
There is no equity! the high interest rates don’t help at all either. if these were 6% mortgages you could work the interest rate spread.
Buyers are price conscience more than terms, but the monthly payment figure is critical also.
One possible solution is to write a contract for a short sale. The first lender is covered, but the second lender is vulnerable and may take a discount.
Write a contract for say $120,000 to cover the first and $40,000 of the second, get the seller to sign, this WON’T help her credit and see if the second will discount $30,000, then you have a deal that you can work in any number of ways.
Re: upsidedown l/o problem, any ideas? - Posted by Craig (IL)
Posted by Craig (IL) on February 27, 2002 at 10:22:05:
I’d like to find a way on these things to. I find that often people in trouble have high interest loans with high payments to begin with (part of the reason they’re in trouble) to make a rental or even a l/o cash flow.
The only thing that I’ve been able to do, when there is good equity to be had, is a tradtional purchase. But that, of course, costs a lot of money that the investor won’t get all back right away. I haven’t yet gone them route of speaking with the lender and offering to formally assume the loan but at much better terms (trading risk for terms).