Probably walk away. There is no equity and unless the house is in an appreciating area where you could do a L/O with payments well above the mortgage payment, and a strike price higher than the current market value, it will be hard to make money here.
Found a seller with a house, worth 150K. 141K is owed on a note and there is 8K arrears. Seller just wants to walk, however, I don’t want to put 8K of my own money into this deal. Foreclosure will start in early April.
Re: what is the best way to handle this… - Posted by B.L.Renfrow
Posted by B.L.Renfrow on February 28, 2001 at 20:30:49:
See whether the seller has anything to contribute toward the arrears. Many times they have part of the money, just not the entire amount, which the lender requires to reinstate. But if they have, say, $4000 that would make me interested. If you take title subject-to the existing first and sell on a land contract, you should be able to get somewhere between $10-$15k down from a buyer. If you get a $4k contribution from the seller, that might be worthwhile, if you could sell quickly, without incurring significant holding costs.
Re: what is the best way to handle this… - Posted by Brent_IL
Posted by Brent_IL on February 28, 2001 at 16:34:02:
Explain to seller that you don?t want to tie up his property, but you can?t justify spending $8,000 unless you can establish the real market value. Pay $100.00 for 14-day option with your terms. Advertise for resident beneficiary via PACTrust. Price at 110% of true market value. 3 months + closing costs, etc. Use R/B?s money to pay arrearages.