Posted by BankRobber on January 05, 1999 at 23:51:56:
here’s one idea:
Loan Roger 4K secured by a Deed of Trust(have him bring 1st loan current). After 1 month or so have Roger default on your loan. Take title to property via a Deed in Lieu(?) of Foreclosure (current lender has to allow you to assume loan). Give Roger an additional 4K when he moves out.
Posted by Aquanaut on January 05, 1999 at 23:12:24:
Roger is the guy who has been begging me to buy his house these past few days. He has a house he ownerfinanced 7 yrs. ago for $35k @ 12.5%. Lately Roger has not worked much and the private individual who holds his note is foreclosing on him. Roger has a job offer in his wife’s home state of Ohio and needs cash to move and get set up up there ( we’re in Texas). I spent most of my cash at the foreclosure auction today and can’t come up with the cash for Roger’s house now. We have talked much on the phone and I have seen the house, it needs minimal repairs which I may not even do. I had planned on lease optioning it to a new buyer and want them to do the minimal repairs. Roger knows of a few interested parties who weren’t able to qualify for conventional financing and I had thought to L/O to one of them quickly. I haven’t talked to the noteholder, he is a local guy and Roger thinks he would gladly foreclose and resell the house as opposed to discounting his note, but I told him to ask anyway. Also, he has several clauses in his contract such as he must approve the new buyer (me) and the note cannot be assumed/assigned etc. So, here’s the numbers:
FMV = 42k
Will sell = 33k probably 32, he would probably come down a little more but I really would like to help the guy win/win and this does just give him moving expenses etc.
Total payoff including arrearage = 23,665 (20,665 + arrears)
Taxes due = 477
There is a realtor involved ( a snootish one at that ) w/ 6% commission agreement (approx. $1980)
House will rent for $575 on a l/o
We have a time constraint, the sale has to be finalized by the 11th of Feb. I can come up with 30% cash but I haven’t found a true hard money lender yet, though I will be looking harder tommorrow. I am closing on another house (rehab) tommorow that’s being funded by a local bank, but I’m not sure how they would want to take on another loan so quickly, and regular mortgage brokers are too slow.
So, there it is, if I left anything out, forgive me, I am admittedly a rotten essayist. Any and all suggestions much appreciated.