Posted by Wayne-Pa on September 18, 2004 at 15:11:33:
oh yeah it is
what should I do with this? - Posted by Wayne-Pa
Posted by Wayne-Pa on September 18, 2004 at 12:26:58:
Here’s the basic facts: Duplex that will appraise for 250K needs 10K in repairs, my cash offer was 155K plus I will incur about 10K in cost for the money. While talking with the seller today while getting the contract signed, he stated that he was 2 months behind and could not make up the payments. He no longer lives in the one unit any more. He owes 137K on the mortgage.
I am having second thoughts about paying him 155K now that I know he is most likely going to foreclosure.
I was thinking on cancelling my offer (since I didn’t sign it yet) and try to negotiate a Sub 2 making up his back payments and possibly paying him like 2500 cash.
what should I do or what would you do?
Re: what should I do with this? - Posted by Eric - TX
Posted by Eric - TX on September 18, 2004 at 20:17:14:
I agree…don’t back out just because you think you can get the price down. However, if, by going sub2, you think you might save yourself money (in borrowing/closing costs) AND pay him MORE (in light of his situation), then I think you’d have a real win-win situation on your hands. Don’t just think of this as an opportunity for YOU to make more…it might be an opportunity for the seller too.
pigs get fat, hogs get slaughtered - Posted by Hunter
Posted by Hunter on September 18, 2004 at 18:08:40:
I agree with Carmen. Don’t get greedy and keep your word. Do the deal and sulk all the way to the bank that you may have left something on the table.
Don’t get greedy - Posted by Carmen_FL
Posted by Carmen_FL on September 18, 2004 at 16:39:18:
If the deal you had was good enough before, why isn’t it good enough anymore? Because someone else is hurting? If you make a good offer to begin with, you shouldn’t have to double-guess yourself, and you should be able to be taken at your word.
I have seen many a deal lost because of greed, and because the investor tried to outsmart himself. I have nothing against trying to renegotiate a better deal if the terms of the deal change (costs, fees, liens, judgments, etc. you didn’t know about), but I don’t like to do that at the expense of the other party. If you want to catch up the payments and keep the loan in place and the seller agrees, do that and give him his $15K. But don’t try to take advantage of people just because they’re down. The guy’s already giving up about $80K in equity to you.
I’ve found that what goes around comes around. You never know where your next deal is coming from. I’m happy to say that we get referral business from people we take out of foreclosure … because we treat them fairly and they recognize that.
Re: what should I do with this? - Posted by Bryan (NC)
Posted by Bryan (NC) on September 18, 2004 at 13:13:51:
Have the seller sign an authorization to release loan info form. Contact the lender to get the payoff amount. If the payoff amount is affordable with your hard money loan and other resources, you don’t need to worry about doing a sub-2.
Oh, if his balance is $137k, and he is only 2 months behind, his payoff on his loan probably won’t be more than maybe $141k - so probably nothing to worry about.
the extra amount to pay for his back payments IS going to come out of his “profit”, isn’t it?