Posted by StephenOR on February 03, 2000 at 20:17:46:
I think the land trust/PACtrust is your best option. I’ve worked foreclosures a lot…and the lady will probably not work with you if she thinks she’s going to have to move. People in foreclosure have such a weird, crazy thing about moving. I am trying to do something similar to your plan, and the best way I have found is to rent/lease-op the house back to the borrower so they don’t have to move. You know, going into the deal, she’s going to fall behind in the payments again. Be sure you have a bulletproof “CYA” letter signed & notarized by her explaining what will happen when and if she defaults to you.
What is the best way to do this deal - Posted by IdahoRob
Posted by IdahoRob on February 03, 2000 at 24:34:01:
Have a lady that lost her job,-- and has not paid her house payments and is stareing forclosure in the face.
The house has a fmv of $290,000 she owes arrears of $7000 and loans total $205,000. It was built in 1987 and is located in Southen Calif. She wants to stay in the house. ( Right don’t they all-- no job how is she going to pay the payments)I will bring the arrears current in exchange for her signing ownership over to me.I then option the house back to her-- with the stipulation in the option that if she fails to make the payments on time that the option is voided and all moneys from her from then on are to be considered rent.
Here are a few of many things I am wanting to work out before I will be doing this deal. I record the Title transfer on this conventionl loan sure as the sun will rise tomorrow. The Bank in about 2 months will call the loan due.
I really don’t want to not record this because this lady is rather odd, and probley the reason why she lost her job. So I think the Pactrust is the better way to go in protecting my $7000 on this. Any thoughts about this and the deal ??
Re: What is the best way to do this deal - Posted by Bob-Tx
Posted by Bob-Tx on February 03, 2000 at 09:45:02:
For the life of me I don’t understand the concept that we would leave a non performing party in a house that we just put $7k into and look to turn a larger long term profit with. How is it that this woman is a good optionee when she couldn’t make her payments and is out of a job? If it were me I believe I’d bite the bullet and remove her from the picture, clean the place up a bit and market it to a new buyer offering to owner finance with 10% down and wrap it so as to realize nice cash flow.
Just my .02
Re: What is the best way to do this deal - Posted by PROS77
Posted by PROS77 on February 03, 2000 at 18:44:54:
BOB I HAVE AN AWSOME WAY TO DO THIS DEAL.
OFFER HER 27,000 TO MOVE!
SHE HAS A HOME WORTH 290,000.
SHE OWES 205,000
YOU BUY THE HOUSE WITH A 80% LOAN
SHE HOLDS A SECOND FOR 20%/ THATS 100% FINANCING!
80%=232,000
SHE PAYS HER CURRENT MORTGAGE OF 205,000 AND POCKETS 27,000 TO PUT DOWN ON A NEW HOME OR WHAT EVER SHE PLEASES.
YOU FIND A BUYER WITH 100% FINANCING AND SELL THE PROPERTY. POCKET $58,000 OR MORE IF SHE TAKES LESS!
E-MAIL ME AND ILL HELP YOU STUCTURE THE DEAL.pros77.@aol.com